International Business Machines (NYSE:IBM) Trading Down 1.7% - What's Next?

Key Points

• IBM shares fell 1.7% on Wednesday, trading as low as $271.33 and closing near $272.78 after heavier-than-average volume.
• Recent news has centered on IBM’s push into AI and quantum computing, including a major collaboration with JA Worldwide to provide AI and digital-skills training to up to one million high school students.
• Wall Street remains broadly positive but mixed: IBM’s consensus rating is Moderate Buy with a $304.17 average target, even as some firms recently cut targets or downgraded the stock.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s share price was down 1.7% during trading on Wednesday . The stock traded as low as $271.33 and last traded at $272.7760. Approximately 5,045,663 shares were traded during mid-day trading, a decline of 29% from the average daily volume of 7,133,325 shares. The stock had previously closed at $277.49.

International Business Machines News Roundup

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

• Positive Sentiment: Jim Cramer publicly said he prefers IBM over speculative quantum names, which may have helped support sentiment by positioning IBM as the more established way to play quantum and AI. Jim Cramer Recommends IBM Over Xanadu Quantum
• Positive Sentiment: IBM announced an expanded global collaboration with JA Worldwide to deliver AI and digital-skills training to up to one million high-school students, reinforcing IBM’s brand in education and workforce development. JA Worldwide and IBM Expand Global Collaboration with Goal of Delivering AI and Digital Skills to Up to One Million High-School Students
• Positive Sentiment: Commentary across multiple outlets highlighted IBM CEO Arvind Krishna’s emphasis on quantum computing, AI, and a long-term profit strategy, which supports the narrative that IBM is building optionality in next-generation tech. IBM CEO: AI Won't Necessarily Lead To Smaller Headcount
• Neutral Sentiment: Analysts and media continued debating IBM’s valuation versus other AI infrastructure names, with one comparison piece arguing peers may offer faster growth and cheaper valuations than IBM. Celestica vs. IBM: Which AI Infrastructure Stock is the Better Buy?
• Neutral Sentiment: Coverage also continued to frame IBM as a long-term AI and quantum winner, but some reports noted the stock may need a pullback before offering a more attractive entry point. IBM Just Placed a $10 Billion Bet to Become the Nvidia of Quantum Computing

Wall Street Analysts Forecast Growth

Several equities analysts have commented on IBM shares. BMO Capital Markets cut their price objective on International Business Machines from $290.00 to $270.00 and set a "market perform" rating on the stock in a research report on Thursday, April 23rd. Weiss Ratings downgraded International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, May 21st. DZ Bank upgraded International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 target price for the company in a report on Friday, April 24th. Erste Group Bank cut International Business Machines from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. Finally, Barclays initiated coverage on International Business Machines in a report on Monday, June 1st. They issued an "overweight" rating and a $350.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $304.17.

International Business Machines Stock Down 1.7%

The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The stock has a market capitalization of $256.38 billion, a PE ratio of 24.12, a PEG ratio of 2.91 and a beta of 0.67. The business has a 50 day moving average of $248.08 and a two-hundred day moving average of $270.61.

International Business Machines (NYSE:IBM - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same period in the prior year, the company posted $1.60 EPS. The firm's quarterly revenue was up 9.5% compared to the same quarter last year. Analysts predict that International Business Machines Corporation will post 12.4 EPS for the current year.

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 2.5%. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio is currently 59.77%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in IBM. Brighton Jones LLC increased its position in International Business Machines by 12.4% during the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after buying an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC increased its position in International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock valued at $571,000 after buying an additional 186 shares in the last quarter. Jump Financial LLC acquired a new position in International Business Machines during the 2nd quarter valued at about $211,000. Ieq Capital LLC increased its holdings in shares of International Business Machines by 2.2% in the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock valued at $11,383,000 after purchasing an additional 843 shares during the period. Finally, Vivaldi Capital Management LP increased its holdings in shares of International Business Machines by 11.6% in the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after purchasing an additional 106 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Company Profile

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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