International Business Machines (NYSE:IBM) Stock Price Down 1.6% - Here's Why

Key Points

• IBM shares dropped 1.6% during mid-day trading, with a volume decline of 82% compared to the average session.
• Several analysts have adjusted their price targets for IBM, with Stifel Nicolaus raising it to $310 and Royal Bank Of Canada to $315, indicating mixed sentiments among analysts.
• IBM recently announced a quarterly dividend of $1.68 per share, with a yield of 2.8%, despite a high dividend payout ratio of 109.09%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares fell 1.6% during mid-day trading on Tuesday . The company traded as low as $238.25 and last traded at $239.68. 825,160 shares traded hands during trading, a decline of 82% from the average session volume of 4,671,274 shares. The stock had previously closed at $243.49.

Analysts Set New Price Targets

Several equities research analysts have issued reports on IBM shares. UBS Group lifted their target price on shares of International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a research report on Thursday, July 24th. Stifel Nicolaus raised their price target on International Business Machines from $290.00 to $310.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. Royal Bank Of Canada boosted their price objective on shares of International Business Machines from $285.00 to $315.00 and gave the company an "outperform" rating in a research report on Thursday, July 17th. Wall Street Zen upgraded International Business Machines from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Finally, Wedbush lifted their price objective on International Business Machines from $300.00 to $325.00 and gave the company an "outperform" rating in a research report on Friday, June 20th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $268.75.

International Business Machines Stock Performance

The company has a market capitalization of $223.00 billion, a PE ratio of 38.95, a price-to-earnings-growth ratio of 3.75 and a beta of 0.71. The company has a current ratio of 0.91, a quick ratio of 0.87 and a debt-to-equity ratio of 2.00. The business's fifty day moving average is $264.80 and its two-hundred day moving average is $257.51.

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

International Business Machines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th will be paid a dividend of $1.68 per share. The ex-dividend date is Friday, August 8th. This represents a $6.72 annualized dividend and a yield of 2.8%. International Business Machines's dividend payout ratio is currently 109.09%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IBM. Lifestyle Asset Management Inc. grew its holdings in shares of International Business Machines by 1.7% in the second quarter. Lifestyle Asset Management Inc. now owns 2,144 shares of the technology company's stock worth $632,000 after acquiring an additional 36 shares during the period. Whelan Financial grew its stake in shares of International Business Machines by 2.4% during the 2nd quarter. Whelan Financial now owns 1,525 shares of the technology company's stock valued at $450,000 after purchasing an additional 36 shares during the period. Ignite Planners LLC grew its stake in shares of International Business Machines by 0.9% during the 2nd quarter. Ignite Planners LLC now owns 3,964 shares of the technology company's stock valued at $1,133,000 after purchasing an additional 36 shares during the period. Blue Edge Capital LLC lifted its stake in shares of International Business Machines by 0.6% in 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 during the period. Finally, Johnson Bixby & Associates LLC boosted its holdings in shares of International Business Machines by 3.3% in the second quarter. Johnson Bixby & Associates LLC now owns 1,208 shares of the technology company's stock worth $356,000 after buying an additional 39 shares during the last quarter. Institutional investors own 58.96% of the company's stock.

About International Business Machines

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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