International Business Machines (NYSE:IBM) Trading Down 1.5% - What's Next?

Key Points

• Shares of International Business Machines (IBM) saw a 1.5% decline, trading between $279.66 and $280.02, with volume up by 25% compared to average trading.
• Analysts have varied price targets for IBM, with JPMorgan raising their target to $290.00 while Bank of America decreased it to $310.00, reflecting mixed outlooks on the stock.
• IBM reported positive quarterly earnings, delivering $2.80 per share, exceeding expectations and showcasing a 7.7% year-over-year revenue increase to $16.98 billion.

International Business Machines Corporation (NYSE:IBM - Get Free Report) shares were down 1.5% during trading on Monday . The stock traded as low as $279.66 and last traded at $280.02. 5,935,997 shares were traded during mid-day trading, an increase of 25% from the average session volume of 4,751,352 shares. The stock had previously closed at $284.31.

Analysts Set New Price Targets

Several analysts have weighed in on IBM shares. JPMorgan Chase & Co. boosted their target price on shares of International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research note on Thursday, July 24th. Wedbush lifted their price target on shares of International Business Machines from $300.00 to $325.00 and gave the company an "outperform" rating in a report on Friday, June 20th. Sanford C. Bernstein began coverage on shares of International Business Machines in a report on Monday, September 15th. They issued a "market perform" rating and a $280.00 price target for the company. Bank of America decreased their price target on shares of International Business Machines from $320.00 to $310.00 and set a "buy" rating for the company in a report on Thursday, July 24th. Finally, Stifel Nicolaus lifted their price target on shares of International Business Machines from $290.00 to $310.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $275.00.

International Business Machines Price Performance

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 firm has a market cap of $260.25 billion, a price-to-earnings ratio of 45.46, a price-to-earnings-growth ratio of 4.38 and a beta of 0.71. The stock has a 50-day moving average of $254.07 and a two-hundred day moving average of $258.11.

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

International Business Machines Announces Dividend

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

Institutional Investors Weigh In On International Business Machines

Hedge funds have recently bought and sold shares of the business. Family CFO Inc purchased a new stake in International Business Machines in the 2nd quarter worth about $25,000. Winnow Wealth LLC purchased a new stake in International Business Machines in the 2nd quarter worth about $27,000. Christopher J. Hasenberg Inc purchased a new stake in International Business Machines in the 1st quarter worth about $27,000. SSA Swiss Advisors AG purchased a new stake in International Business Machines in the 1st quarter worth about $28,000. Finally, Highline Wealth Partners LLC lifted its stake in International Business Machines by 85.0% in the 2nd quarter. Highline Wealth Partners LLC now owns 111 shares of the technology company's stock worth $33,000 after acquiring an additional 51 shares in the last quarter. 58.96% of the stock is 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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