International Business Machines (NYSE:IBM) Trading Down 2.1% Following Weak Earnings

Key Points

• IBM shares fell 2.1% after the company posted weaker-than-expected earnings, with quarterly EPS of $2.93 versus estimates of $2.97 and revenue of $17.16 billion versus the expected $17.86 billion.
• The stock saw heavier trading volume than usual, and the drop added to recent volatility after a prior guidance cut that had already pressured shares.
• Wall Street remains mixed on IBM: analysts have a Moderate Buy consensus overall, but some firms downgraded the stock, while investors are also watching AI momentum and upcoming Q2 commentary for signs of recovery.

International Business Machines Corporation (NYSE:IBM - Get Free Report)'s stock price traded down 2.1% during trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $204.73 and last traded at $206.0290. 13,496,854 shares changed hands during mid-day trading, an increase of 66% from the average daily volume of 8,118,879 shares. The stock had previously closed at $210.50.

The technology company reported $2.93 EPS for the quarter, missing analysts' consensus estimates of $2.97 by ($0.04). International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The firm had revenue of $17.16 billion for the quarter, compared to analysts' expectations of $17.86 billion.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Some commentary suggests IBM may be undervalued after the pullback, with one valuation-focused article arguing the stock could be a bargain at current levels. IBM Stock Looks Like A Bargain At Current Levels
• Positive Sentiment: One earnings-preview piece highlighted continued AI momentum as a potential factor that could help restore investor confidence if management delivers reassuring guidance. IBM Earnings in Focus: Can AI momentum revive investor confidence?
• Neutral Sentiment: IBM is due to report full Q2 results, and several previews say the market is focused on management’s outlook, sales pipeline commentary, dividend support, and whether the company can explain the recent profit warning. IBM to Report Full Q2 Results After Its Historic Stock Crash – Here’s What Investors Will Watch
• Negative Sentiment: Multiple law firms have launched securities-fraud investigations into IBM following the steep stock drop and the July 14 guidance cut, adding headline risk and reinforcing concerns about the quality of prior disclosures. IBM Investigation Notice: IBM Product Slowdown and 25% Stock Drop Trigger Securities Fraud Investigation

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Oppenheimer downgraded International Business Machines from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 15th. Piper Sandler raised shares of International Business Machines to an "overweight" rating in a research report on Tuesday, June 23rd. Robert W. Baird started coverage on shares of International Business Machines in a research note on Tuesday. They set a "neutral" rating and a $230.00 price target on the stock. Wolfe Research cut shares of International Business Machines to a "peer perform" rating in a report on Tuesday, June 23rd. Finally, Bank of America lifted their price objective on shares of International Business Machines from $315.00 to $330.00 and gave the stock a "buy" rating in a research note on Monday, July 6th. Fifteen research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, International Business Machines presently has an average rating of "Moderate Buy" and a consensus target price of $278.68.

Institutional Investors Weigh In On International Business Machines

Several hedge funds have recently bought and sold shares of IBM. Vanguard Group Inc. boosted its holdings in International Business Machines by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 97,216,131 shares of the technology company's stock worth $28,796,390,000 after buying an additional 1,439,824 shares in the last quarter. State Street Corp boosted its stake in shares of International Business Machines by 1.0% during the 4th quarter. State Street Corp now owns 54,996,293 shares of the technology company's stock worth $16,290,452,000 after acquiring an additional 518,321 shares in the last quarter. Geode Capital Management LLC grew its position in shares of International Business Machines by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company's stock valued at $6,679,105,000 after acquiring an additional 336,069 shares during the period. Capital World Investors grew its position in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company's stock valued at $6,523,720,000 after acquiring an additional 4,976,756 shares during the period. Finally, Bank of America Corp DE increased its stake in shares of International Business Machines by 7.0% in the 1st quarter. Bank of America Corp DE now owns 16,063,653 shares of the technology company's stock valued at $3,893,669,000 after purchasing an additional 1,049,602 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company's stock.

International Business Machines Stock Down 2.1%

The company has a market cap of $193.64 billion, a price-to-earnings ratio of 18.22, a PEG ratio of 2.30 and a beta of 0.68. The business has a fifty day moving average of $263.44 and a two-hundred day moving average of $262.05. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.