International Business Machines Corporation (NYSE:IBM – Get Free Report)’s stock price shot up 3.9% during trading on Thursday . The company traded as high as $219.95 and last traded at $219.3930. 22,341,953 shares changed hands during trading, an increase of 179% from the average session volume of 8,009,213 shares. The stock had previously closed at $211.20.
Key Stories Impacting International Business Machines
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: Some analysts still see long-term value after the drop, with price-target reductions that nevertheless imply meaningful upside from current levels and a few commentators arguing the stock may be oversold and technically near support.
- Positive Sentiment: IBM also introduced new Power systems and software products aimed at automating operations and supporting AI workloads, which could help the company compete better in enterprise AI over time.
- Neutral Sentiment: Several articles discuss possible rebound setups, options strategies, and whether the selloff has created a buying opportunity, but these are more about investor positioning than a new business catalyst.
- Neutral Sentiment: IBM’s investor-day-style messaging and executive comments emphasized that its software business is not being disrupted by AI, though that reassurance has not yet changed sentiment.
- Negative Sentiment: IBM reported preliminary Q2 revenue of about $17.2 billion and adjusted EPS of about $2.93, both below Wall Street expectations, triggering a record one-day decline and wiping out tens of billions in market value.
- Negative Sentiment: Multiple securities-fraud investigations have been announced following the stock plunge, adding legal overhang and suggesting investors are questioning whether prior guidance and disclosures were misleading.
- Negative Sentiment: Analysts cited weaker software and infrastructure demand, delayed large deals, and shifting customer capital spending priorities as signs that IBM may face continued pressure if enterprise IT budgets keep moving toward AI infrastructure.
Analyst Ratings Changes
A number of equities analysts recently weighed in on the company. Needham & Company LLC assumed coverage on International Business Machines in a report on Wednesday, June 3rd. They issued a “buy” rating for the company. Citigroup boosted their price objective on International Business Machines from $285.00 to $375.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Susquehanna initiated coverage on International Business Machines in a research note on Friday, July 10th. They set a “neutral” rating and a $303.00 target price for the company. Bank of America increased their target price on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a research report on Monday, July 6th. Finally, Weiss Ratings cut shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, June 24th. Fifteen investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and an average target price of $301.83.
International Business Machines Stock Performance
The stock has a market cap of $206.21 billion, a price-to-earnings ratio of 19.40, a P/E/G ratio of 2.10 and a beta of 0.68. The firm’s 50-day moving average is $264.41 and its two-hundred day moving average is $264.54. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75.
International Business Machines (NYSE:IBM – Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping 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 during the quarter, compared to analyst estimates of $15.60 billion. During the same period in the previous year, the business earned $1.60 EPS. International Business Machines’s quarterly revenue was up 9.5% on a year-over-year basis. As a group, sell-side analysts expect that International Business Machines Corporation will post 12.43 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 $1.69 dividend. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s dividend payout ratio is presently 59.77%.
Institutional Inflows and Outflows
Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in shares of International Business Machines by 1.5% in 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 grew its stake in 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 valued at $16,290,452,000 after acquiring an additional 518,321 shares in the last quarter. Geode Capital Management LLC grew its stake in 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 in the last quarter. Capital World Investors raised its holdings in International Business Machines by 29.2% in 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 last quarter. Finally, Bank of America Corp DE raised its holdings in 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 acquiring an additional 1,049,602 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.
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.
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