International Business Machines (NYSE:IBM) Stock Price Down 1.1% - What's Next?

Key Points

• Shares slipped about 1.1% to roughly $229.57 mid‑day on Monday with volume ~3.94M (down 34% vs. average), trading well below its 50‑day ($243.51) and 200‑day ($278.90) moving averages.
• Analysts maintain a "Moderate Buy" consensus with an average price target of $296.18, though individual targets vary widely (approximately $231–$360).
• IBM beat Q1 estimates—reported $1.91 EPS vs. $1.81 expected and $15.92B revenue (+9.5% YoY)—and raised the quarterly dividend to $1.69 (annualized $6.76, ~2.9% yield).

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) traded down 1.1% during mid-day trading on Monday . The company traded as low as $228.62 and last traded at $229.5660. 3,941,620 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 5,961,738 shares. The stock had previously closed at $232.20.

Analyst Ratings Changes

A number of equities analysts have weighed in on IBM shares. Evercore boosted their price target on International Business Machines from $330.00 to $345.00 and gave the stock an "outperform" rating in a research report on Thursday, January 29th. Jefferies Financial Group lowered their price target on International Business Machines from $370.00 to $320.00 and set a "buy" rating on the stock in a research report on Monday, April 20th. Oppenheimer lowered their price target on International Business Machines from $380.00 to $320.00 and set an "outperform" rating on the stock in a research report on Thursday, April 16th. HSBC raised International Business Machines from a "reduce" rating to a "hold" rating and boosted their price target for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. Finally, Argus set a $360.00 price target on International Business Machines in a research report on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $296.18.

International Business Machines Stock Performance

The company's fifty day simple moving average is $243.51 and its 200 day simple moving average is $278.90. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. The stock has a market capitalization of $215.77 billion, a price-to-earnings ratio of 20.30, a P/E/G ratio of 2.41 and a beta of 0.58.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating the consensus estimate of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same quarter in the prior year, the business earned $1.60 earnings per share. The firm's revenue for the quarter was up 9.5% on a year-over-year basis. On average, equities research analysts expect that International Business Machines Corporation will post 12.38 earnings per share for the current year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be given a $1.69 dividend. The ex-dividend date of this dividend is Friday, May 8th. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a dividend yield of 2.9%. International Business Machines's dividend payout ratio (DPR) is currently 59.42%.

Insider Activity at International Business Machines

In other International Business Machines news, Director Michael Miebach purchased 434 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The shares were acquired at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the purchase, the director owned 434 shares of the company's stock, valued at approximately $101,265.22. The trade was a ∞ increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On International Business Machines

Several institutional investors and hedge funds have recently modified their holdings of the business. Birinyi Associates Inc. increased its stake in International Business Machines by 6.0% during the 1st quarter. Birinyi Associates Inc. now owns 24,059 shares of the technology company's stock worth $5,832,000 after acquiring an additional 1,355 shares during the period. TFR Capital LLC. increased its stake in International Business Machines by 16.9% during the 1st quarter. TFR Capital LLC. now owns 1,319 shares of the technology company's stock worth $320,000 after acquiring an additional 191 shares during the period. Citizens National Bank Trust Department increased its stake in International Business Machines by 39.2% during the 1st quarter. Citizens National Bank Trust Department now owns 9,444 shares of the technology company's stock worth $2,289,000 after acquiring an additional 2,659 shares during the period. Chicago Partners Investment Group LLC increased its stake in International Business Machines by 5.1% during the 1st quarter. Chicago Partners Investment Group LLC now owns 24,103 shares of the technology company's stock worth $6,071,000 after acquiring an additional 1,161 shares during the period. Finally, Gratus Wealth Advisors LLC increased its stake in International Business Machines by 9.3% during the 1st quarter. Gratus Wealth Advisors LLC now owns 6,661 shares of the technology company's stock worth $1,615,000 after acquiring an additional 568 shares during the period. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

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