International Business Machines (NYSE:IBM) Trading Down 2.1% – Should You Sell?

Posted by Geri Gentry on Aug 1st, 2026

International Business Machines Corporation (NYSE:IBM – Get Free Report)’s share price fell 2.1% during mid-day trading on Thursday . The company traded as low as $220.20 and last traded at $221.7670. 8,005,695 shares traded hands during trading, a decline of 3% from the average daily volume of 8,243,563 shares. The stock had previously closed at $226.44.

International Business Machines News Roundup

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

Positive Sentiment: Enterprise AI and hybrid-cloud momentum: IBM’s focus on secure, governed and hybrid AI could appeal to large enterprises concerned about data control. Recurring software growth, Red Hat momentum and a growing AI-consulting backlog support the company’s 2026 outlook. However, converting demand into sustained revenue is expected to take time. IBM’s Enterprise AI Strategy Targets Security, Data Control and Trust IBM’s Hybrid Cloud and AI Shift Is Reshaping Its 2026 Growth Outlook
Positive Sentiment: Quantum-computing milestones: IBM and research partners reported demonstrations of “quantum advantage,” including simulations and logical-circuit work that reportedly exceed practical classical-computing capabilities. The results strengthen IBM’s technology narrative and could support longer-term commercial opportunities, although quantum revenue remains an emerging story. IBM and Algorithmiq Demonstrate Quantum Advantage
Positive Sentiment: Banking-platform collaboration: IBM, Accenture and UniCredit are collaborating on a next-generation European banking platform, providing validation for IBM’s enterprise technology and consulting capabilities. UniCredit, Accenture and IBM Collaborate on Banking Platform
Neutral Sentiment: Mixed valuation setup: The pullback has made IBM appear more attractively priced, but analysts still point to modest growth, leverage and a valuation that is not clearly cheap. Recent quarterly results met EPS expectations, while revenue fell short of consensus and rose only about 1% year over year.
Negative Sentiment: Legal-investigation notices: Several law firms announced investigations into potential securities-law violations following IBM’s stock decline. These announcements are often promotional and do not establish wrongdoing, but they can add short-term headline pressure and uncertainty. Pomerantz IBM Investor Investigation

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on IBM. BMO Capital Markets dropped their target price on shares of International Business Machines from $270.00 to $230.00 and set a “market perform” rating for the company in a research report on Thursday, July 23rd. 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. Oppenheimer cut shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. DZ Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price objective for the company in a research report on Friday, April 24th. Finally, The Goldman Sachs Group set a $270.00 target price on International Business Machines in a research note on Thursday, July 23rd. Fifteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, International Business Machines presently has an average rating of “Moderate Buy” and a consensus target price of $265.40.

Get Our Latest Stock Report on International Business Machines

International Business Machines Stock Performance

The stock has a market cap of $211.41 billion, a price-to-earnings ratio of 19.91, a P/E/G ratio of 2.17 and a beta of 0.68. 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 50 day simple moving average of $261.71 and a 200 day simple moving average of $257.81.

International Business Machines (NYSE:IBM – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. The company had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm’s quarterly revenue was up 1.1% compared to the same quarter last year. During the same period last year, the company posted $2.80 EPS. As a group, equities research analysts forecast that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 3.0%. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.

Institutional Trading of International Business Machines

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. McGowan Group Asset Management Inc. increased its holdings in International Business Machines by 1.2% in the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock worth $798,000 after purchasing an additional 33 shares in the last quarter. Exencial Wealth Advisors LLC grew its holdings in shares of International Business Machines by 0.4% during the fourth quarter. Exencial Wealth Advisors LLC now owns 7,874 shares of the technology company’s stock worth $2,332,000 after purchasing an additional 34 shares during the last quarter. Howard Capital Management Inc. grew its holdings in shares of International Business Machines by 0.5% during the fourth quarter. Howard Capital Management Inc. now owns 6,793 shares of the technology company’s stock worth $2,012,000 after purchasing an additional 35 shares during the last quarter. Prasad Wealth Partners LLC increased its stake in shares of International Business Machines by 1.0% in the fourth quarter. Prasad Wealth Partners LLC now owns 3,604 shares of the technology company’s stock valued at $1,068,000 after buying an additional 35 shares during the period. Finally, Orca Wealth Management LLC increased its stake in shares of International Business Machines by 3.7% in the fourth quarter. Orca Wealth Management LLC now owns 975 shares of the technology company’s stock valued at $285,000 after buying an additional 35 shares during the period. Institutional investors own 58.96% of the company’s stock.

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.

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