International Business Machines (NYSE:IBM) Shares Down 2.5% – What’s Next?

Shares of International Business Machines Corporation (NYSE:IBM) were down 2.5% during trading on Friday . The company traded as low as $287.50 and last traded at $287.85. Approximately 3,618,047 shares traded hands during mid-day trading, a decline of 50% from the average session volume of 7,298,817 shares. The stock had previously closed at $295.30.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM continues to get credit for growth in quantum computing and AI, including new enterprise software tools and multi-agent capabilities that could support future revenue. IBM Advances Enterprise AI Software Development with Multi-Agent Capabilities and Specialized Modernization Workflows
• Positive Sentiment: The stock still has implied upside to Susquehanna’s target, suggesting analysts see value if IBM can convert its AI and quantum strengths into stronger earnings growth. Susquehanna coverage note
• Neutral Sentiment: IBM’s latest product updates for its Bob platform and other AI tools reinforce its enterprise strategy, but these launches are not yet enough to change the near-term investment view. IBM Upgrades Bob With Multi-Agent AI
• Negative Sentiment: Starbucks’ move to build internal AI tools to replace Microsoft and IBM software highlights a potential risk to IBM’s enterprise software revenue if other large customers follow suit. There Are So Many Reasons to Like IBM Right Now—Just Not Enough to Buy the Stock
• Negative Sentiment: Analysts remain cautious heading into IBM’s upcoming Q2 earnings, with concerns that AI could pressure parts of the consulting and mainframe business even as newer growth areas expand. Susquehanna Praises IBM’s Quantum and AI Growth but Rates the Stock a Hold – Here’s Why

Analyst Ratings Changes

Several brokerages have recently weighed in on IBM. DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 target price for the company in a research note on Friday, April 24th. Stifel Nicolaus set a $290.00 price objective on International Business Machines in a research note on Friday, May 22nd. Citigroup lifted their price objective on International Business Machines from $285.00 to $375.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Roth Capital reaffirmed a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Finally, Oppenheimer dropped their price target on shares of International Business Machines from $380.00 to $320.00 and set an “outperform” rating for the company in a research note on Thursday, April 16th. Sixteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and a consensus target price of $306.28.

International Business Machines Stock Performance

The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The stock has a market capitalization of $270.55 billion, a P/E ratio of 25.45, a price-to-earnings-growth ratio of 2.78 and a beta of 0.68. The company has a fifty day moving average of $263.77 and a two-hundred day moving average of $266.17.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. During the same quarter in the prior year, the firm posted $1.60 earnings per share. International Business Machines’s revenue for the quarter was up 9.5% compared to the same quarter last year. On average, equities analysts anticipate that International Business Machines Corporation will post 12.45 EPS for the current year.

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were given a dividend of $1.69 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 2.3%. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio is currently 59.77%.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds have recently added to or reduced their stakes in the business. Family CFO Inc acquired a new stake in International Business Machines during the fourth quarter worth about $25,000. Basepoint Wealth LLC bought a new position in shares of International Business Machines during the fourth quarter valued at approximately $25,000. Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines during the 1st quarter worth approximately $26,000. Joseph Group Capital Management acquired a new stake in shares of International Business Machines during the 4th quarter worth approximately $28,000. Finally, Cornerstone Financial Management LLC acquired a new position in International Business Machines during the 4th quarter valued at approximately $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.