Wall Street Zen lowered shares of International Business Machines (NYSE:IBM – Free Report) from a hold rating to a sell rating in a report published on Saturday morning.
Several other research firms have also issued reports on IBM. Weiss Ratings lowered shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, June 24th. Sanford C. Bernstein reiterated a “market perform” rating on shares of International Business Machines in a research note on Thursday. BMO Capital Markets decreased their target price on International Business Machines from $290.00 to $270.00 and set a “market perform” rating on the stock in a research report on Thursday, April 23rd. HSBC set a $175.00 price target on International Business Machines and gave the company a “reduce” rating in a research note on Thursday. Finally, Wolfe Research cut International Business Machines to a “peer perform” rating in a report on Tuesday, June 23rd. Fifteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and an average price target of $292.89.
Read Our Latest Report on International Business Machines
International Business Machines Stock Down 3.0%
International Business Machines (NYSE:IBM – Get Free Report) last announced its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. The business had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. International Business Machines’s revenue was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.60 earnings per share. As a group, sell-side analysts anticipate that International Business Machines will post 12.28 earnings per share for the current year.
International Business Machines Increases Dividend
The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a dividend of $1.69 per share. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date was Friday, May 8th. International Business Machines’s dividend payout ratio is 59.77%.
Institutional Investors Weigh In On International Business Machines
Several large investors have recently modified their holdings of IBM. Basepoint Wealth LLC acquired a new position in International Business Machines during the fourth quarter worth $25,000. Family CFO Inc bought a new position in shares of International Business Machines during the fourth quarter valued at $25,000. Joseph Group Capital Management acquired a new stake in shares of International Business Machines in the 4th quarter valued at $28,000. Cornerstone Financial Management LLC bought a new stake in shares of International Business Machines in the 4th quarter worth about $28,000. Finally, SWAN Capital LLC acquired a new stake in shares of International Business Machines during the 3rd quarter worth about $28,000. 58.96% of the stock is currently owned by institutional investors.
Trending Headlines about International Business Machines
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: IBM launched new Power server products aimed at automation, app modernization, and local AI inferencing, which could support its enterprise AI push over time.
- Positive Sentiment: JPMorgan kept an overweight rating on IBM even after cutting its price target to $250, indicating Wall Street still sees upside from current levels.
- Positive Sentiment: Some analysts say the stock’s sharp decline may have pushed it into oversold territory, which could attract bargain hunters if sentiment stabilizes.
- Neutral Sentiment: IBM heads into its July 22 earnings report with investors focused on whether the company can validate its AI and cloud momentum after the warning.
- Neutral Sentiment: Analysts at Zacks and others are debating whether the selloff is an opportunity or a sign to wait, reflecting uncertainty rather than a clear fundamental shift.
- Negative Sentiment: IBM’s preliminary Q2 miss and weak near-term outlook are the main reasons the stock is falling, as they suggest slower growth and margin pressure.
- Negative Sentiment: Multiple law firms have announced securities-fraud investigations after the plunge, which can keep negative headlines around the stock.
- Negative Sentiment: Analyst sentiment is turning more cautious, with some estimate reductions and technical warnings reinforcing bearish momentum.
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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