International Business Machines (NYSE:IBM) Shares Down 2.3% – Should You Sell?

Shares of International Business Machines Corporation (NYSE:IBM) dropped 2.3% on Tuesday . The stock traded as low as $289.92 and last traded at $290.2350. Approximately 4,845,587 shares changed hands during trading, a decline of 1% from the average daily volume of 4,903,906 shares. The stock had previously closed at $297.17.

Analyst Upgrades and Downgrades

IBM has been the subject of several recent research reports. Bank of America lifted their price objective on International Business Machines from $310.00 to $315.00 and gave the stock a “buy” rating in a report on Thursday, October 23rd. JPMorgan Chase & Co. lifted their target price on shares of International Business Machines from $244.00 to $290.00 and gave the stock a “neutral” rating in a research note on Thursday, July 24th. Royal Bank Of Canada lowered their price target on shares of International Business Machines from $315.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, October 23rd. Morgan Stanley cut their price objective on shares of International Business Machines from $256.00 to $252.00 and set an “equal weight” rating for the company in a report on Thursday, October 23rd. Finally, Sanford C. Bernstein initiated coverage on shares of International Business Machines in a report on Monday, September 15th. They set a “market perform” rating and a $280.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $288.00.

International Business Machines Stock Down 2.3%

The company has a 50 day moving average of $286.75 and a 200-day moving average of $272.19. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.93 and a quick ratio of 0.89. The company has a market cap of $271.29 billion, a P/E ratio of 34.72, a price-to-earnings-growth ratio of 4.33 and a beta of 0.71.

International Business Machines (NYSE:IBM) last announced its earnings results on Wednesday, October 22nd. The technology company reported $2.65 earnings per share for the quarter, topping analysts’ consensus estimates of $2.45 by $0.20. The business had revenue of $16.33 billion for the quarter, compared to analyst estimates of $16.10 billion. International Business Machines had a return on equity of 37.76% and a net margin of 12.09%.The company’s quarterly revenue was up 9.1% compared to the same quarter last year. During the same period in the prior year, the company earned $2.30 EPS. International Business Machines has set its FY 2025 guidance at EPS. On average, equities analysts predict that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 10th. Shareholders of record on Monday, November 10th will be given a dividend of $1.68 per share. The ex-dividend date is Monday, November 10th. This represents a $6.72 annualized dividend and a yield of 2.3%. International Business Machines’s payout ratio is presently 80.38%.

Institutional Trading of International Business Machines

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in shares of International Business Machines by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 95,776,307 shares of the technology company’s stock worth $27,024,243,000 after purchasing an additional 724,832 shares in the last quarter. State Street Corp grew its holdings in shares of International Business Machines by 0.3% in the second quarter. State Street Corp now owns 54,536,963 shares of the technology company’s stock worth $16,076,406,000 after purchasing an additional 147,721 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of International Business Machines by 1.9% in the second quarter. Geode Capital Management LLC now owns 21,936,235 shares of the technology company’s stock worth $6,444,527,000 after buying an additional 400,131 shares during the period. Capital World Investors raised its holdings in International Business Machines by 13.9% during the 3rd quarter. Capital World Investors now owns 17,045,156 shares of the technology company’s stock valued at $4,809,461,000 after buying an additional 2,077,506 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in International Business Machines by 6.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,636,725 shares of the technology company’s stock valued at $2,147,608,000 after buying an additional 524,633 shares during the period. Hedge funds and other institutional investors own 58.96% of the company’s stock.

About International Business Machines

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.