International Business Machines (NYSE:IBM) Trading Down 2.5% – Should You Sell?

Posted by Francis Steltz on Jul 10th, 2026

International Business Machines Corporation (NYSE:IBM – Get Free Report) shares traded down 2.5% during trading on Friday . The stock traded as low as $287.50 and last traded at $287.85. Approximately 3,618,047 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 7,298,817 shares. The stock had previously closed at $295.30.

International Business Machines News Roundup

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

Positive Sentiment: IBM continues to get credit for progress in quantum computing and enterprise AI, including new multi-agent software development tools and modernization workflows that could support longer-term growth. IBM Advances Enterprise AI Software Development with Multi-Agent Capabilities and Specialized Modernization Workflows
Positive Sentiment: IBM and Red Hat recently commercialized “Lightwell,” a cybersecurity-related launch that suggests the company is turning strategic AI and security investments into products customers can buy. IBM just answered a $5 billion cybersecurity question
Neutral Sentiment: Susquehanna’s new coverage came with a $303 target, implying only modest upside from current levels and reinforcing a wait-and-see stance heading into IBM’s Q2 earnings on July 22. International Business Machines is now covered by Susquehanna
Negative Sentiment: Sentiment has also been hurt by reports that Starbucks is building internal AI tools to replace vendor software from IBM, raising concerns that enterprise customers may try to reduce software spending over time. Starbucks Builds Sovereign AI to Cut $400 Million in Software Costs

Analyst Ratings Changes

IBM has been the subject of a number of recent analyst reports. Jefferies Financial Group started coverage on International Business Machines in a report on Tuesday, June 23rd. They set a “buy” rating for the company. KeyCorp cut International Business Machines to a “sector weight” rating in a report on Tuesday, June 23rd. Wolfe Research lowered International Business Machines to a “peer perform” rating in a research note on Tuesday, June 23rd. Susquehanna began coverage on International Business Machines in a report on Friday. They issued a “neutral” rating and a $303.00 price target for the company. Finally, Wedbush set a $350.00 price target on shares of International Business Machines in a research report on Tuesday, June 2nd. Sixteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $306.28.

Get Our Latest Stock Report on International Business Machines

International Business Machines Stock Down 2.5%

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 firm’s 50-day moving average is $262.55 and its two-hundred day moving average is $266.02. The stock has a market cap of $270.55 billion, a P/E ratio of 25.45, a PEG ratio of 2.92 and a beta of 0.68.

International Business Machines (NYSE:IBM – Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. The firm had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period last year, the company earned $1.60 EPS. On average, equities research analysts anticipate that International Business Machines Corporation will post 12.45 earnings per share for the current year.

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were paid a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a dividend yield of 2.3%. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s payout ratio is currently 59.77%.

Institutional Trading of International Business Machines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in IBM. Tema ETFs LLC boosted its stake in shares of International Business Machines by 10.6% in the 2nd quarter. Tema ETFs LLC now owns 19,644 shares of the technology company’s stock valued at $5,524,000 after purchasing an additional 1,885 shares during the last quarter. Canvas Wealth Advisors LLC raised its stake in shares of International Business Machines by 5.9% during the second quarter. Canvas Wealth Advisors LLC now owns 1,553 shares of the technology company’s stock worth $437,000 after buying an additional 86 shares during the last quarter. William Mack & Associates Inc. acquired a new position in International Business Machines in the second quarter valued at approximately $202,000. Lederer & Associates Investment Counsel CA lifted its holdings in International Business Machines by 34.5% in the second quarter. Lederer & Associates Investment Counsel CA now owns 3,406 shares of the technology company’s stock valued at $958,000 after buying an additional 873 shares during the period. Finally, Handelsbanken Fonder AB boosted its stake in International Business Machines by 86.7% in the second quarter. Handelsbanken Fonder AB now owns 638,216 shares of the technology company’s stock valued at $179,473,000 after acquiring an additional 296,372 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Company Profile

(Get Free Report)

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.