International Business Machines (NYSE:IBM) Stock Price Down 1% - Should You Sell?

Key Points

• IBM's stock price declined by 1% on Friday, closing at $243.20, and experienced a significant drop in trading volume of 86% from its average.
• Wall Street analysts have a mixed consensus on IBM, with one strong buy, eight buy ratings, and a consensus price target of $268.75, following several target upgrades from firms like Wedbush and JPMorgan Chase.
• The company reported better-than-expected quarterly earnings of $2.80 EPS, exceeding estimates, and plans to pay a quarterly dividend of $1.68 on September 10th, indicating a strong financial position despite the recent stock price dip.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares traded down 1% on Friday . The stock traded as low as $242.18 and last traded at $243.20. 647,670 shares changed hands during trading, a decline of 86% from the average session volume of 4,680,424 shares. The stock had previously closed at $245.73.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Wall Street Zen upgraded shares of International Business Machines from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Wedbush upped their target price on shares of International Business Machines from $300.00 to $325.00 and gave the stock an "outperform" rating in a research report on Friday, June 20th. Citigroup restated an "outperform" rating on shares of International Business Machines in a research report on Saturday, May 10th. JPMorgan Chase & Co. increased their price target on shares of International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Finally, The Goldman Sachs Group increased their price target on shares of International Business Machines from $270.00 to $310.00 and gave the company a "buy" rating in a research report on Wednesday, July 2nd. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $268.75.

International Business Machines Stock Down 1.3%

The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.00. The firm has a market cap of $225.49 billion, a PE ratio of 39.38, a P/E/G ratio of 3.77 and a beta of 0.69. The firm's 50 day moving average is $266.46 and its 200-day moving average is $257.71.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.65 by $0.15. The business had revenue of $16.98 billion for the quarter, compared to the consensus estimate of $16.58 billion. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The company's quarterly revenue was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.43 earnings per share. International Business Machines has set its FY 2025 guidance at EPS. As a group, equities research analysts expect that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Stockholders of record on Friday, August 8th will be paid a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Friday, August 8th. International Business Machines's dividend payout ratio (DPR) is currently 109.09%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of IBM. Lifestyle Asset Management Inc. raised its stake in shares of International Business Machines by 1.7% in the 2nd quarter. Lifestyle Asset Management Inc. now owns 2,144 shares of the technology company's stock valued at $632,000 after buying an additional 36 shares in the last quarter. Whelan Financial raised its stake in shares of International Business Machines by 2.4% in the 2nd quarter. Whelan Financial now owns 1,525 shares of the technology company's stock valued at $450,000 after buying an additional 36 shares in the last quarter. Ignite Planners LLC raised its stake in shares of International Business Machines by 0.9% in the 2nd quarter. Ignite Planners LLC now owns 3,964 shares of the technology company's stock valued at $1,133,000 after buying an additional 36 shares in the last quarter. Blue Edge Capital LLC increased its position in shares of International Business Machines by 0.6% during the 1st quarter. Blue Edge Capital LLC now owns 6,776 shares of the technology company's stock worth $1,685,000 after purchasing an additional 39 shares in the last quarter. Finally, Johnson Bixby & Associates LLC increased its position in shares of International Business Machines by 3.3% during the 2nd quarter. Johnson Bixby & Associates LLC now owns 1,208 shares of the technology company's stock worth $356,000 after purchasing an additional 39 shares in the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Company Profile

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

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