International Business Machines (NYSE:IBM) Shares Down 3.2% – Should You Sell?

Posted by Francis Steltz on Sep 18th, 2026

International Business Machines Corporation (NYSE:IBM – Get Free Report) shares traded down 3.2% during mid-day trading on Friday . The stock traded as low as $229.38 and last traded at $230.0930. Approximately 13,323,971 shares changed hands during trading, an increase of 73% from the average session volume of 7,705,939 shares. The stock had previously closed at $237.75.

Key Headlines Impacting International Business Machines

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

Positive Sentiment: IBM subsidiary Anderon finalized a roughly $1 billion CHIPS Act award to support a quantum wafer foundry in Albany, New York. IBM is reportedly matching the funding, and early wafer production could strengthen its position in quantum infrastructure, although the near-term financial impact remains uncertain. IBM Lands $1 Billion Quantum Foundry Award
Positive Sentiment: IBM expanded its AI governance offering through a collaboration with CUBE, integrating real-time regulatory intelligence into watsonx.governance. The partnership may improve IBM’s enterprise AI positioning as companies face growing compliance requirements. CUBE and IBM AI Governance Collaboration
Neutral Sentiment: Analysts’ median price target is reported at $315, well above recent trading levels, but targets may not capture the market’s concerns about slowing growth and delayed software deals. Institutional positioning was mixed, with major funds both adding and reducing IBM holdings.
Negative Sentiment: IBM’s software growth slowed in the second quarter. Recurring revenue, Red Hat and data products could provide support, but weakness in Transaction Processing remains a concern for the company’s ability to sustain its software-led growth strategy. IBM Software Growth Slows
Negative Sentiment: Investors are still digesting IBM’s reduced 2026 constant-currency revenue-growth outlook of 4% to 5%, down from a prior expectation above 5%. Second-quarter infrastructure revenue fell 7%, while IBM Z revenue dropped 42%, highlighting weaker mainframe trends and contributing to the stock’s decline. IBM Softer 2026 Outlook

Analyst Ratings Changes

A number of equities analysts have recently commented on IBM shares. Bank of America raised their target price on shares of International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Wolfe Research lowered shares of International Business Machines to a “peer perform” rating in a report on Tuesday, June 23rd. Barclays decreased their price target on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating for the company in a research report on Thursday, July 23rd. The Goldman Sachs Group set a $270.00 target price on International Business Machines in a research report on Thursday, July 23rd. Finally, BMO Capital Markets reduced their price target on shares of International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research report on Thursday, July 23rd. Seventeen analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $265.16.

View Our Latest Report on IBM

International Business Machines Stock Down 3.2%

The business has a 50-day moving average price of $232.30 and a 200-day moving average price of $246.70. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The company has a market capitalization of $216.78 billion, a price-to-earnings ratio of 20.42, a price-to-earnings-growth ratio of 2.26 and a beta of 0.71.

International Business Machines (NYSE:IBM – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts’ consensus estimates of $2.93. The firm had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company’s revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business posted $2.80 EPS. As a group, equities analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were paid a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.9%. The ex-dividend date was Monday, August 10th. International Business Machines’s dividend payout ratio is currently 59.98%.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.27% of the company’s stock.

Institutional Trading of International Business Machines

Several large investors have recently added to or reduced their stakes in IBM. Basepoint Wealth LLC bought a new position in shares of International Business Machines in the 4th quarter valued at $25,000. Portus Wealth Advisors LLC bought a new stake in International Business Machines during the 1st quarter worth $26,000. Harborfront Financial Group LLC acquired a new position in International Business Machines in the 2nd quarter worth about $27,000. Cornerstone Financial Management LLC bought a new position in International Business Machines in the fourth quarter valued at about $28,000. Finally, Hara Capital LLC bought a new position in International Business Machines in the second quarter valued at about $28,000. 58.96% of the stock is owned by institutional investors.

About International Business Machines

(Get Free Report)

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.