International Business Machines (NYSE:IBM) Stock Falls 1.3% - Time to Sell?

Key Points

• IBM shares fell 1.3% to about $244.91, while trading volume was 64% below its average.
• IBM beat quarterly earnings and revenue estimates, reporting $2.95 per share and $17.10 billion in revenue; revenue rose 4.7% year over year.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $266.88. IBM also declared a quarterly dividend of $1.69 per share, a 2.8% annualized yield.

International Business Machines Corporation (NYSE:IBM - Get Free Report) fell 1.3% on Thursday. The company traded as low as $244.37 and last traded at $244.9070. 2,590,977 shares traded hands during trading, a decline of 64% from the average daily volume of 7,254,643 shares. The stock had previously closed at $248.22.

Trending Headlines about International Business Machines

These are some of the IBM headlines that stood out recently:

• Positive Sentiment: LTM’s AI-powered quantum error-mitigation capability is now available through IBM’s Quantum Functions Catalog, adding to the platform’s software ecosystem. Article: LTM adds quantum error mitigation to IBM catalog
• Neutral Sentiment: IBM’s Digital Sovereignty Index found widespread enterprise difficulty proving control over data and AI systems. That points to a potential need for governance and security solutions, but also highlights challenges that could complicate customers’ AI adoption. Article: IBM Digital Sovereignty Index
• Negative Sentiment: Reports say IBM will end H-1B and green-card sponsorship for many U.S. consulting roles. The policy may constrain hiring and risk disrupting employee retention, though its financial impact is not yet clear. Article: IBM to end immigration sponsorship for roles in biggest unit

Analyst Ratings Changes

A number of research analysts have commented on IBM shares. Truist Financial set a $260.00 price objective on International Business Machines in a report on Thursday, October 22nd. Stifel Nicolaus lifted their target price on International Business Machines from $235.00 to $260.00 and gave the stock a "buy" rating in a report on Thursday, October 22nd. Yorkville Ives assumed coverage on shares of International Business Machines in a research report on Monday, October 5th. They issued an "outperform" rating and a $275.00 target price for the company. Morgan Stanley upped their price target on shares of International Business Machines from $238.00 to $240.00 and gave the company an "equal weight" rating in a research note on Thursday, October 22nd. Finally, UBS Group raised their price target on shares of International Business Machines from $236.00 to $243.00 and gave the stock a "neutral" rating in a research report on Thursday, October 22nd. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $266.88.

International Business Machines Stock Down 1.3%

The firm has a market cap of $231.47 billion, a price-to-earnings ratio of 20.88, a P/E/G ratio of 2.41 and a beta of 0.78. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.80. The stock has a 50-day moving average of $237.53 and a 200-day moving average of $247.92.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.85 by $0.10. The firm had revenue of $17.10 billion during the quarter, compared to analysts' expectations of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The company's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.65 EPS. Sell-side analysts predict that International Business Machines Corporation will post 12.42 EPS for the current fiscal year.

International Business Machines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 annualized dividend and a yield of 2.8%. International Business Machines's dividend payout ratio is currently 57.63%.

Insider Buying and Selling

In other news, SVP Robert Thomas sold 25,000 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.27% of the stock is currently owned by corporate insiders.

Institutional Trading of International Business Machines

A number of institutional investors and hedge funds have recently made changes to their positions in IBM. Harborfront Financial Group LLC bought a new stake in International Business Machines during the second quarter worth $27,000. Hara Capital LLC bought a new position in shares of International Business Machines in the 2nd quarter valued at $28,000. Bare Financial Services Inc increased its stake in shares of International Business Machines by 114.6% in the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock valued at $29,000 after purchasing an additional 55 shares during the last quarter. Caitlin John LLC acquired a new position in shares of International Business Machines during the 2nd quarter worth $35,000. Finally, Osbon Capital Management LLC acquired a new position in shares of International Business Machines during the 2nd quarter worth $37,000. Institutional investors own 58.96% of the company's stock.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology company that provides software, consulting, infrastructure and related services to businesses and public-sector organizations. Its offerings include hybrid cloud and artificial intelligence solutions, enterprise software, IT consulting, and systems such as IBM Z mainframes and Power servers. IBM also develops technologies in areas including data management, automation, cybersecurity and quantum computing. Its consulting teams help clients design, build and manage technology systems and business processes.

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