International Business Machines (NYSE:IBM) Stock Price Down 1.7% - Should You Sell?

Key Points

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International Business Machines Corporation (NYSE:IBM - Get Free Report)'s stock price traded down 1.7% during trading on Monday . The stock traded as low as $227.12 and last traded at $227.9910. 7,884,337 shares changed hands during trading, an increase of 31% from the average session volume of 6,015,164 shares. The stock had previously closed at $231.98.

International Business Machines News Roundup

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: Management projects roughly $1 billion of added free cash flow, a key argument for value buyers who see the post‑earnings dip as a buying opportunity. A $1 Billion Reason to Buy the Dip in IBM Stock
• Positive Sentiment: Analysis argues the market has mispriced IBM’s longer‑term AI/quantum story and that the post‑earnings slide is overdone, suggesting upside if investors re‑rate future growth drivers. IBM’s Post‑Earnings Slide is Overdone. The Quantum AI Story is Mispriced and Misunderstood
• Positive Sentiment: Industry report lists IBM among leaders in the global AI software‑platform market, supporting the case for durable secular opportunity in enterprise AI. Artificial Intelligence Software Platforms Global Market Report 2026
• Positive Sentiment: IBM is highlighted as a top dividend aristocrat pick by one outlet, and some analysts nudged targets or reiterated the stock’s income appeal — a signal for dividend‑oriented investors. International Business Machines (IBM) – Among the 10 Best Dividend Aristocrat Stocks to Buy in 2026
• Neutral Sentiment: Zacks notes elevated investor attention and summarizes factors to watch going forward, useful for monitoring sentiment shifts but not a clear directional catalyst. International Business Machines Corporation (IBM) is Attracting Investor Attention
• Neutral Sentiment: Seeking Alpha’s earnings notes focus on what management didn’t disclose — a reminder to watch guidance and segment detail in upcoming calls. CliffsNotes IBM, Boeing Earnings Summaries
• Neutral Sentiment: Coverage of Arm‑IBM partnership potential notes strategic optionality in enterprise AI but does not imply immediate upside—monitor for partnership execution. Is It Too Late to Buy Arm Stock?
• Negative Sentiment: BMO cut its price target after Q1, citing softer‑than‑expected organic software growth — a direct negative on near‑term growth perceptions. BMO Trims IBM Target on Soft Growth, Wedbush Sees AI Tailwinds
• Negative Sentiment: Forbes warns that Q1 strength masks structural weakness as hardware cyclical gains offset decelerating high‑margin consulting and software — a caution for growth investors. A Strong Quarter Does Not Make IBM Stock A Strong Buy

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Jefferies Financial Group lowered their price objective on shares of International Business Machines from $370.00 to $320.00 and set a "buy" rating for the company in a research note on Monday, April 20th. Wedbush cut their price target on shares of International Business Machines from $340.00 to $320.00 and set an "outperform" rating on the stock in a report on Thursday. Evercore lifted their price target on shares of International Business Machines from $330.00 to $345.00 and gave the company an "outperform" rating in a report on Thursday, January 29th. Morgan Stanley lifted their price target on shares of International Business Machines from $215.00 to $225.00 and gave the company an "equal weight" rating in a report on Thursday. Finally, Citigroup began coverage on shares of International Business Machines in a report on Friday, April 10th. They issued a "buy" rating and a $285.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $300.25.

International Business Machines Trading Down 1.7%

The company has a market capitalization of $214.29 billion, a P/E ratio of 20.16, a P/E/G ratio of 2.41 and a beta of 0.69. The stock's 50 day moving average is $245.87 and its 200-day moving average is $280.31. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

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

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be paid a $1.69 dividend. The ex-dividend date of this dividend is Friday, May 8th. This is an increase from International Business Machines's previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 3.0%. International Business Machines's payout ratio is currently 59.42%.

Insider Transactions at International Business Machines

In other International Business Machines news, Director Michael Miebach acquired 434 shares of the business's stock in a transaction on Wednesday, February 25th. The shares were acquired at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the acquisition, the director owned 434 shares in the company, valued at $101,265.22. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director David N. Farr bought 1,000 shares of the firm's stock in a transaction on Friday, January 30th. The shares were acquired at an average cost of $304.00 per share, with a total value of $304,000.00. Following the purchase, the director directly owned 9,258 shares of the company's stock, valued at approximately $2,814,432. This represents a 12.11% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders purchased 1,484 shares of company stock valued at $417,157. 0.27% of the stock is owned by insiders.

Hedge Funds Weigh In On International Business Machines

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Mattson Financial Services LLC purchased a new stake in International Business Machines in the third quarter worth approximately $852,000. Waverton Investment Management Ltd boosted its holdings in International Business Machines by 3.3% in the third quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company's stock worth $280,439,000 after purchasing an additional 32,072 shares during the last quarter. Newbridge Financial Services Group Inc. boosted its holdings in International Business Machines by 30.0% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company's stock worth $3,887,000 after purchasing an additional 3,029 shares during the last quarter. NEOS Investment Management LLC boosted its holdings in International Business Machines by 51.7% in the third quarter. NEOS Investment Management LLC now owns 114,395 shares of the technology company's stock worth $32,278,000 after purchasing an additional 38,973 shares during the last quarter. Finally, American National Bank & Trust boosted its holdings in International Business Machines by 26.2% in the third quarter. American National Bank & Trust now owns 12,537 shares of the technology company's stock worth $3,537,000 after purchasing an additional 2,603 shares during the last quarter. Institutional investors own 58.96% of the company's stock.

About International Business Machines

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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