International Business Machines (NYSE:IBM) Stock Price Down 3% on Analyst Downgrade

Key Points

• IBM shares fell 3% after JPMorgan Chase cut its price target from $291 to $250, though the bank kept an overweight rating on the stock.
• Trading volume surged to about 13.1 million shares, well above average, as the stock traded between $210.22 and $212.54 after closing at $219.05 the prior session.
• Despite the selloff, IBM still has a Moderate Buy consensus from analysts, with 15 Buy ratings and a consensus price target of $292.89; the company also recently raised its quarterly dividend to $1.69 per share.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price fell 3% during mid-day trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $291.00 to $250.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. International Business Machines traded as low as $210.22 and last traded at $212.54. Approximately 13,070,110 shares changed hands during trading, an increase of 62% from the average session volume of 8,048,274 shares. The stock had previously closed at $219.05.

Other analysts have also recently issued research reports about the company. DZ Bank upgraded International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 target price on the stock in a report on Friday, April 24th. Needham & Company LLC initiated coverage on International Business Machines in a report on Wednesday, June 3rd. They issued a "buy" rating for the company. Piper Sandler upgraded shares of International Business Machines to an "overweight" rating in a research report on Tuesday, June 23rd. Weiss Ratings lowered shares of International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, June 24th. Finally, Argus lowered their price objective on shares of International Business Machines from $360.00 to $280.00 and set a "buy" rating for the company in a research report on Thursday. Fifteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $292.89.

Key International Business Machines News

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

• Positive Sentiment: JPMorgan cut its price target on IBM but kept an overweight rating, signaling it still sees meaningful upside from current levels. Benzinga source
• Positive Sentiment: IBM continues to launch new AI-focused products, including expanded Power server offerings aimed at enterprise AI workloads, which supports the long-term growth narrative. Article title
• Neutral Sentiment: Several commentators argue IBM may be oversold after the selloff, but they remain cautious about calling it a clear buy before more earnings clarity arrives. Article title
• Negative Sentiment: IBM’s preliminary Q2 report missed expectations and implied softer near-term demand, prompting multiple analysts to cut estimates and price targets. Article title
• Negative Sentiment: Law firms have begun securities-fraud investigations after the sudden drop, adding legal overhang and investor uncertainty. Article title

Hedge Funds Weigh In On International Business Machines

Several large investors have recently made changes to their positions in IBM. Family CFO Inc acquired a new position in International Business Machines during the 4th quarter valued at about $25,000. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines during the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC bought a new stake in shares of International Business Machines during the first quarter worth approximately $26,000. Joseph Group Capital Management bought a new stake in shares of International Business Machines during the fourth quarter worth approximately $28,000. Finally, Cornerstone Financial Management LLC acquired a new position in International Business Machines in the fourth quarter valued at approximately $28,000. Institutional investors and hedge funds own 58.96% of the company's stock.

International Business Machines Price Performance

The firm has a market capitalization of $199.76 billion, a price-to-earnings ratio of 18.79, a price-to-earnings-growth ratio of 2.06 and a beta of 0.68. 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 company's fifty day moving average is $264.17 and its two-hundred day moving average is $263.94.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The firm had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business's quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.60 EPS. Equities research analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were issued a $1.69 dividend. This is a boost 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 3.2%. The ex-dividend date was Friday, May 8th. International Business Machines's dividend payout ratio is currently 59.77%.

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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