International Business Machines (NYSE:IBM) Stock Price Down 2.7% - Time to Sell?

Key Points

• Shares fell 2.7% to $297.34 on Monday, with about 3.9 million shares traded—roughly a 20% drop from average daily volume.
• IBM beat Q3 estimates (EPS $2.65 vs. $2.45; revenue $16.33B, +9.1% YoY), yet analysts maintain a consensus of Moderate Buy with an average price target of $288, below the current share price.
• The company declared a quarterly dividend of $1.68 per share (annualized $6.72), implying a yield of 2.3% and a payout ratio around 80%.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares dropped 2.7% on Monday . The stock traded as low as $296.51 and last traded at $297.3410. Approximately 3,905,622 shares traded hands during trading, a decline of 20% from the average daily volume of 4,904,046 shares. The stock had previously closed at $305.69.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on IBM shares. Bank of America lifted their price objective on shares of International Business Machines from $310.00 to $315.00 and gave the company a "buy" rating in a report on Thursday, October 23rd. JPMorgan Chase & Co. raised 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. Sanford C. Bernstein began coverage on International Business Machines in a report on Monday, September 15th. They set a "market perform" rating and a $280.00 price objective for the company. Royal Bank Of Canada dropped their target price on International Business Machines from $315.00 to $300.00 and set an "outperform" rating on the stock in a report on Thursday, October 23rd. Finally, Weiss Ratings upgraded International Business Machines from a "hold (c+)" rating to a "buy (b)" rating in a report on Saturday, October 25th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, International Business Machines presently has a consensus rating of "Moderate Buy" and an average target price of $288.00.

International Business Machines Price Performance

The stock has a market cap of $277.94 billion, a PE ratio of 35.57, a P/E/G ratio of 4.33 and a beta of 0.71. The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.89 and a current ratio of 0.93. The business has a 50 day moving average price of $285.92 and a two-hundred day moving average price of $271.79.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, October 22nd. The technology company reported $2.65 EPS for the quarter, topping analysts' consensus estimates of $2.45 by $0.20. International Business Machines had a return on equity of 37.76% and a net margin of 12.09%.The business had revenue of $16.33 billion for the quarter, compared to analyst estimates of $16.10 billion. International Business Machines's quarterly revenue was up 9.1% compared to the same quarter last year. During the same period last year, the company posted $2.30 earnings per share. International Business Machines has set its FY 2025 guidance at EPS. Research analysts expect that International Business Machines Corporation will post 10.78 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 10th. Investors of record on Monday, November 10th will be given a dividend of $1.68 per share. The ex-dividend date is Monday, November 10th. This represents a $6.72 annualized dividend and a yield of 2.3%. International Business Machines's dividend payout ratio is presently 80.38%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IBM. Brooklyn Investment Group boosted its holdings in shares of International Business Machines by 32.7% in the 1st quarter. Brooklyn Investment Group now owns 6,622 shares of the technology company's stock valued at $1,647,000 after acquiring an additional 1,630 shares during the last quarter. Edgar Lomax Co. VA raised its holdings in shares of International Business Machines by 5.7% during the first quarter. Edgar Lomax Co. VA now owns 235,967 shares of the technology company's stock worth $58,676,000 after purchasing an additional 12,690 shares during the last quarter. Vise Technologies Inc. acquired a new position in International Business Machines during the second quarter valued at $16,565,000. Thames Capital Management LLC acquired a new position in International Business Machines during the second quarter valued at $2,710,000. Finally, Wedbush Securities Inc. boosted its holdings in International Business Machines by 5.6% in the first quarter. Wedbush Securities Inc. now owns 62,067 shares of the technology company's stock valued at $15,434,000 after purchasing an additional 3,276 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

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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