Citigroup Has Lowered Expectations for International Business Machines (NYSE:IBM) Stock Price

International Business Machines (NYSE:IBM) had its price target decreased by equities researchers at Citigroup from $255.00 to $245.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a “buy” rating on the technology company’s stock. Citigroup’s target price points to a potential upside of 14.40% from the stock’s current price.

IBM has been the subject of several other reports. Sanford C. Bernstein restated a “market perform” rating on shares of International Business Machines in a report on Thursday, July 16th. Morgan Stanley dropped their price target on shares of International Business Machines from $293.00 to $190.00 and set an “equal weight” rating on the stock in a research note on Thursday. Argus cut their price objective on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a research report on Thursday, July 16th. Roth Capital restated a “buy” rating on shares of International Business Machines in a research note on Wednesday, June 3rd. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $270.00 target price on shares of International Business Machines in a report on Tuesday. Fifteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, International Business Machines has a consensus rating of “Moderate Buy” and an average target price of $265.40.

International Business Machines Stock Performance

International Business Machines stock opened at $214.16 on Friday. The company has a quick ratio of 0.76, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The company has a market capitalization of $201.28 billion, a P/E ratio of 19.00, a PEG ratio of 2.32 and a beta of 0.68. The stock’s 50 day moving average is $262.92 and its 200 day moving average is $260.50. International Business Machines has a twelve month low of $199.19 and a twelve month high of $332.46.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data 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 during the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter last year, the company earned $2.80 EPS. On average, equities research analysts predict that International Business Machines will post 12.34 earnings per share for the current fiscal year.

Institutional Investors Weigh In On International Business Machines

Several institutional investors have recently modified their holdings of IBM. Brighton Jones LLC lifted its holdings in International Business Machines by 12.4% in the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock valued at $4,619,000 after acquiring an additional 2,323 shares during the period. Sivia Capital Partners LLC grew its stake in shares of International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock valued at $571,000 after purchasing an additional 186 shares during the period. Jump Financial LLC purchased a new stake in shares of International Business Machines during the 2nd quarter valued at about $211,000. Ieq Capital LLC increased its position in shares of International Business Machines by 2.2% during the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock valued at $11,383,000 after purchasing an additional 843 shares during the last quarter. Finally, Vivaldi Capital Management LP lifted its stake in shares of International Business Machines by 11.6% in the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock worth $300,000 after purchasing an additional 106 shares during the period. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines News Roundup

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

• Positive Sentiment: Unusual options activity showed strong bullish interest, with traders buying 108,601 call options on IBM, about 35% above normal call volume. This suggests some investors are betting on a rebound.
• Positive Sentiment: Citigroup lowered its price target to $245 from $255 but kept a Buy rating, implying meaningful upside from current levels and signaling that some analysts still see value in the shares.
• Positive Sentiment: IBM announced a dividend of $1.69 per share, reinforcing its appeal to income-focused investors at a time when the stock has been under pressure.
• Neutral Sentiment: Recent commentary has turned split: some analysts and strategists view the post-earnings decline as a potential long-term opportunity, while others say IBM may be stuck in a holding pattern until growth reaccelerates. IBM: The Historic Stock Rout Is A Generational Opportunity
• Neutral Sentiment: IBM is still getting support from its long-term quantum computing strategy, including the announced acquisition of HRL Laboratories, which expands its quantum R&D capabilities. That could help sentiment, but the benefit is longer term rather than immediate.
• Negative Sentiment: The main reason the stock fell sharply is IBM’s Q2 report and lowered 2026 outlook: revenue missed expectations, mainframe sales weakened, and management cut full-year constant-currency revenue growth guidance after customers shifted spending toward AI infrastructure.
• Negative Sentiment: Shortly after the earnings slump, law firms announced securities-fraud investigations tied to IBM’s disclosures about the mainframe slowdown, adding legal overhang and uncertainty for shareholders.

International Business Machines Company Profile

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.