International Business Machines (NYSE:IBM) Stock Price Down 4.8% - Time to Sell?

Key Points

• IBM shares fell 4.8% on Thursday, dropping from $262.35 to as low as $243.68 as trading volume surged well above average.
• The decline was largely tied to Accenture’s weaker fiscal 2026 sales outlook, which raised concerns that enterprise tech spending and consulting demand may be softening across the sector.
• Despite the selloff, IBM still has solid analyst support with a Moderate Buy rating and an average price target of $304.17, while recent earnings and dividend growth remained positive fundamentals.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) traded down 4.8% on Thursday . The company traded as low as $243.68 and last traded at $249.7190. Approximately 16,407,675 shares changed hands during mid-day trading, an increase of 129% from the average daily volume of 7,173,927 shares. The stock had previously closed at $262.35.

Trending Headlines about International Business Machines

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

• Negative Sentiment: IBM fell after Accenture cut its fiscal 2026 sales guidance, raising concerns that enterprise tech spending and consulting demand may be softening across the sector. Why Is IBM Stock Declining On Thursday?
• Negative Sentiment: Multiple reports said IBM stock was hit in premarket trading after the Accenture warning, with some articles describing a sharp pullback and renewed downside momentum as investors reassess IBM ahead of its July 22 earnings report. International Business Machines (IBM) Stock Slides 4% Following Accenture Revenue Warning
• Negative Sentiment: One market note said IBM has been in a downtrend since early June and has given back a sizable portion of its recent gains, reinforcing bearish sentiment in the near term. Here's why the IBM stock is falling after the Accenture earnings
• Neutral Sentiment: IBM also had some company-specific positive developments, including a new IBM Maximo SaaS migration for a large Asia-Pacific resort operator and fresh IBM research highlighting enterprise AI sovereignty and data-control needs, which could support longer-term demand but did not offset the sector-driven selling today.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on IBM shares. UBS Group upgraded shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price objective on the stock in a research note on Wednesday, February 25th. Citigroup increased their price target on shares of International Business Machines from $285.00 to $375.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Barclays started coverage on shares of International Business Machines in a research report on Monday, June 1st. They set an "overweight" rating and a $350.00 price objective for the company. Stifel Nicolaus set a $290.00 target price on International Business Machines in a report on Friday, May 22nd. Finally, Needham & Company LLC initiated coverage on International Business Machines in a research report on Wednesday, June 3rd. They set a "buy" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, International Business Machines currently has an average rating of "Moderate Buy" and an average price target of $304.17.

International Business Machines Stock Down 4.8%

The company has a market capitalization of $234.71 billion, a PE ratio of 22.08, a price-to-earnings-growth ratio of 2.81 and a beta of 0.67. The company's fifty day moving average is $251.20 and its 200-day moving average is $269.32. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The business 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 company's revenue was up 9.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.60 earnings per share. As a group, analysts predict that International Business Machines Corporation will post 12.38 EPS for the current fiscal year.

International Business Machines Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were issued a $1.69 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 2.7%. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's payout ratio is currently 59.77%.

Institutional Investors Weigh In On International Business Machines

A number of institutional investors and hedge funds have recently bought and sold shares of IBM. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its position in shares of International Business Machines by 424.6% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company's stock valued at $77,234,000 after acquiring an additional 211,040 shares during the last quarter. GLOBALT Investments LLC GA grew its holdings in shares of International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company's stock valued at $5,417,000 after purchasing an additional 2,930 shares in the last quarter. Waverton Investment Management Ltd increased its position 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. raised its stake in International Business Machines by 30.0% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company's stock valued at $3,887,000 after purchasing an additional 3,029 shares in the last quarter. Finally, Rice Partnership LLC bought a new position in International Business Machines during the fourth quarter valued at $3,317,000. 58.96% of the stock is owned by institutional investors.

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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