International Business Machines (NYSE:IBM) Stock Price Down 1.7% - What's Next?

Key Points

• International Business Machines Corporation (IBM) shares fell by 1.7% to $275.93, with a significant trading volume drop of 38% from the average.
• Analysts have varied ratings on IBM, with price targets ranging from $200 to $315, reflecting a consensus price target of $286.38.
• The company reported $2.80 EPS for its latest quarter, exceeding analyst expectations and showing a 7.7% year-over-year revenue increase.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) traded down 1.7% on Thursday . The company traded as low as $275.60 and last traded at $275.93. 2,948,664 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 4,727,641 shares. The stock had previously closed at $280.75.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Royal Bank Of Canada restated an "outperform" rating and issued a $315.00 price target on shares of International Business Machines in a research report on Thursday. JPMorgan Chase & Co. raised their price target on International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Erste Group Bank cut International Business Machines from a "buy" rating to a "hold" rating in a research report on Thursday, August 14th. The Goldman Sachs Group lifted their price objective on International Business Machines from $270.00 to $310.00 and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. Finally, UBS Group lifted their price objective on International Business Machines from $195.00 to $200.00 and gave the stock a "sell" rating in a research report on Thursday, July 24th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $286.38.

International Business Machines Trading Down 1.7%

The business has a 50 day simple moving average of $259.77 and a 200-day simple moving average of $261.25. 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 stock has a market capitalization of $256.45 billion, a price-to-earnings ratio of 44.79, a price-to-earnings-growth ratio of 4.25 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (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 firm had revenue of $16.98 billion for the quarter, compared to analyst estimates of $16.58 billion. During the same period last year, the company earned $2.43 EPS. The firm's quarterly revenue was up 7.7% on a year-over-year basis. International Business Machines has set its FY 2025 guidance at EPS. On average, equities analysts predict that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Friday, August 8th were paid a $1.68 dividend. This represents a $6.72 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Friday, August 8th. International Business Machines's payout ratio is currently 109.09%.

Hedge Funds Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently modified their holdings of the company. Greenwood Capital Associates LLC lifted its stake in shares of International Business Machines by 20.9% in the 3rd quarter. Greenwood Capital Associates LLC now owns 47,153 shares of the technology company's stock valued at $13,305,000 after purchasing an additional 8,164 shares in the last quarter. Bill Few Associates Inc. lifted its stake in shares of International Business Machines by 3.7% in the 3rd quarter. Bill Few Associates Inc. now owns 17,533 shares of the technology company's stock valued at $4,947,000 after purchasing an additional 625 shares in the last quarter. Carnegie Investment Counsel lifted its stake in shares of International Business Machines by 3.4% in the 3rd quarter. Carnegie Investment Counsel now owns 34,902 shares of the technology company's stock valued at $9,848,000 after purchasing an additional 1,150 shares in the last quarter. Townsend Asset Management Corp NC ADV acquired a new position in International Business Machines during the 3rd quarter worth approximately $642,000. Finally, Fulton Breakefield Broenniman LLC lifted its position in International Business Machines by 18.0% during the 3rd quarter. Fulton Breakefield Broenniman LLC now owns 3,077 shares of the technology company's stock worth $868,000 after acquiring an additional 469 shares in the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

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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