International Business Machines (NYSE:IBM) Stock Price Down 3.5% - What's Next?

Key Points

• IBM's stock price fell 3.5% on Friday, closing at $278.09 after trading as low as $277.50, and saw a decline in trading volume compared to the average session.
• Research firms have mixed ratings on IBM stock, with one Strong Buy, seven Buy, eight Hold, and one Sell rating; the consensus target price is $284.62.
• IBM reported better-than-expected earnings with $2.80 per share, surpassing analysts' estimates, and the company is projecting a dividend yield of 2.4% based on a quarterly payout of $1.68 per share.

International Business Machines Corporation (NYSE:IBM - Get Free Report) traded down 3.5% during trading on Friday . The company traded as low as $277.50 and last traded at $278.09. 4,482,830 shares traded hands during trading, a decline of 6% from the average session volume of 4,754,418 shares. The stock had previously closed at $288.23.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on IBM. Wall Street Zen raised shares of International Business Machines from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. UBS Group raised their price target on shares of International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a report on Thursday, July 24th. The Goldman Sachs Group increased their price target on International Business Machines from $270.00 to $310.00 and gave the company a "buy" rating in a report on Wednesday, July 2nd. Melius Research raised International Business Machines to a "strong-buy" rating in a research report on Monday, July 7th. Finally, Royal Bank Of Canada raised their price target on shares of International Business Machines from $285.00 to $315.00 and gave the stock an "outperform" rating in a research report on Thursday, July 17th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $284.62.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87. The company has a fifty day moving average of $257.62 and a 200 day moving average of $260.41. The stock has a market cap of $258.45 billion, a P/E ratio of 45.14, a PEG ratio of 4.46 and a beta of 0.73.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share for the quarter, topping analysts' consensus estimates of $2.65 by $0.15. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The firm had revenue of $16.98 billion during the quarter, compared to analysts' expectations of $16.58 billion. During the same period last year, the firm posted $2.43 earnings per share. The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. 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 fiscal year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th were given a dividend of $1.68 per share. The ex-dividend date was Friday, August 8th. This represents a $6.72 dividend on an annualized basis and a yield of 2.4%. International Business Machines's dividend payout ratio (DPR) is presently 109.09%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its stake in shares of International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after acquiring an additional 2,323 shares in the last quarter. GAMMA Investing LLC increased its holdings in shares of International Business Machines by 19.3% during the first quarter. GAMMA Investing LLC now owns 17,694 shares of the technology company's stock worth $4,400,000 after buying an additional 2,862 shares in the last quarter. Integrated Advisors Network LLC lifted its position in International Business Machines by 2.3% during the 1st quarter. Integrated Advisors Network LLC now owns 9,186 shares of the technology company's stock worth $2,284,000 after buying an additional 203 shares in the last quarter. USA Financial Formulas acquired a new position in shares of International Business Machines during the first quarter worth approximately $227,000. Finally, Zhang Financial LLC boosted its position in International Business Machines by 5.7% in the 1st quarter. Zhang Financial LLC now owns 19,109 shares of the technology company's stock valued at $4,751,000 after buying an additional 1,032 shares during the last quarter. Institutional investors and hedge funds 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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