International Business Machines (NYSE:IBM) Stock Price Down 1.7% After Analyst Downgrade

International Business Machines Corporation (NYSE:IBM)’s share price traded down 1.7% during trading on Friday after BMO Capital Markets lowered their price target on the stock from $350.00 to $290.00. BMO Capital Markets currently has a market perform rating on the stock. International Business Machines traded as low as $241.77 and last traded at $246.1160. 11,271,267 shares traded hands during mid-day trading, an increase of 85% from the average session volume of 6,078,928 shares. The stock had previously closed at $250.37.

Several other analysts also recently issued reports on the stock. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research note on Wednesday, December 10th. UBS Group raised International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 target price for the company in a research report on Wednesday, February 25th. Weiss Ratings reissued a “buy (b)” rating on shares of International Business Machines in a research report on Thursday, January 22nd. Bank of America increased their price objective on International Business Machines from $315.00 to $335.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Finally, Jefferies Financial Group restated a “buy” rating on shares of International Business Machines in a research report on Monday, February 23rd. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $314.60.

Insider Buying and Selling

In other news, Director David N. Farr bought 1,000 shares of the stock in a transaction on Friday, January 30th. The shares were purchased at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the completion of the purchase, the director directly owned 9,258 shares of the company’s stock, valued at $2,814,432. This trade represents a 12.11% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Michael Miebach bought 434 shares of the company’s stock in a transaction on Wednesday, February 25th. The stock was purchased at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the transaction, the director owned 434 shares in the company, valued at approximately $101,265.22. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders acquired 1,484 shares of company stock valued at $417,157. Insiders own 0.27% of the company’s stock.

More International Business Machines News

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

• Positive Sentiment: Completed Confluent acquisition bolsters IBM’s AI and hybrid-cloud stack by adding real-time data streaming to feed AI models and automation—supports longer-term revenue synergies and positioning in enterprise AI. IBM Confluent Deal Puts Real Time Data At Core Of AI Story
• Positive Sentiment: Retail and TV-commentator attention has boosted short-term interest; previous endorsements (e.g., Jim Cramer mentions) continue to draw flows and chatter. International Business Machines Corporation (IBM) Shares Higher After Jim Cramer Advised In August To Step In Due To Fundamentals
• Neutral Sentiment: Zacks notes IBM as a trending/search interest stock — increased attention can amplify moves but does not by itself change fundamentals. International Business Machines Corporation (IBM) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: JPMorgan lowered its price target after the Confluent deal (from $317 to $283) and kept a Neutral rating—signal that some analysts see limited near-term upside or acquisition integration risk. JPMorgan Lowers IBM Target after Confluent Deal, Sees Balanced Risk/Reward
• Negative Sentiment: BMO cut its target from $350 to $290 (now Market Perform), and other outlets report analyst downgrades and pessimistic forecasts—these re-ratings increase selling pressure and reduce near-term upside expectations. BMO Lowers IBM Target
• Negative Sentiment: Unusually large options activity: traders bought a surge of put contracts (reported 88,456 puts), signaling significant hedging or bearish speculative bets that can amplify downside volatility. (Options flow reported 3/19)
• Negative Sentiment: Several recent articles highlight mixed/declining short-term momentum and Wall Street reassessment amid diverging analyst views—reinforces the narrative of uncertainty around near-term growth and valuation. Wall Street Reassesses IBM’s Trajectory Amid Diverging Analyst Views

Hedge Funds Weigh In On International Business Machines

A number of hedge funds have recently added to or reduced their stakes in IBM. Family CFO Inc acquired a new position in shares of International Business Machines during the 4th quarter worth $25,000. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines in the 4th quarter valued at $25,000. Mountain Hill Investment Partners Corp. bought a new stake in International Business Machines in the third quarter worth $28,000. Joseph Group Capital Management bought a new stake in International Business Machines in the fourth quarter worth $28,000. Finally, Cornerstone Financial Management LLC acquired a new position in International Business Machines during the fourth quarter worth $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Price Performance

The company’s 50-day simple moving average is $271.85 and its 200 day simple moving average is $284.80. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67. The stock has a market capitalization of $230.86 billion, a price-to-earnings ratio of 22.07, a P/E/G ratio of 2.42 and a beta of 0.73.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, topping analysts’ consensus estimates of $4.33 by $0.19. The company had revenue of $19.69 billion during the quarter, compared to analysts’ expectations of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business’s quarterly revenue was up 12.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.92 earnings per share. Equities research analysts forecast that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th were given a dividend of $1.68 per share. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $6.72 dividend on an annualized basis and a yield of 2.7%. International Business Machines’s dividend payout ratio is presently 60.27%.

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.