International Business Machines (NYSE:IBM) Shares Down 4.8% – Time to Sell?

Shares of International Business Machines Corporation (NYSE:IBM) fell 4.8% during mid-day trading on Thursday . The stock traded as low as $257.22 and last traded at $259.74. 12,536,966 shares traded hands during mid-day trading, an increase of 133% from the average session volume of 5,373,332 shares. The stock had previously closed at $272.81.

International Business Machines News Summary

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

• Positive Sentiment: Product and security roadmap updates strengthen IBM’s AI-storage and security positioning, supporting future revenue for enterprise customers. IBM AI FlashSystem And QRadar Updates Shape Storage And Security Story
• Positive Sentiment: IBM expanded partnership activity (called out in coverage of a smaller AI partner) increases visibility of IBM’s AI ecosystem and could drive channel/PR benefits. This is a modest positive signal for IBM’s AI momentum. Datavault AI Death Cross Collides With IBM, Super Bowl Boost
• Neutral Sentiment: Analyst coverage remains mixed: recent reports include multiple “Buy/Outperform” calls but at least one “Sell,” and a wide range of price targets (median ~$337.5). That divergence creates uncertainty around near-term sentiment. $IBM stock is down 6% today. Here’s what we see in our data.
• Neutral Sentiment: Coverage placing IBM among reliable dividend names may support long-term investor demand, but has limited effect on short-term price moves. 3 Dividend Aristocrat Stocks To Buy for Reliable Income In 2026
• Neutral Sentiment: Institutional activity is mixed: Quiver’s data shows many funds both increasing and decreasing IBM positions in recent quarters, signaling ongoing rotation rather than a consensus directional bet. Fund Update: Advisors Asset Management, Inc. Just Disclosed New Holdings
• Negative Sentiment: Advisors Asset Management reduced its IBM holding by ~11% in the 12/31/2025 13F filing — incremental selling from an institutional holder can add downward pressure. Fund Update: Advisors Asset Management, Inc. Just Disclosed New Holdings
• Negative Sentiment: Large put buying—traders purchased ~56,108 IBM put options (a ~42% jump vs. typical put volume)—signals increased bearish positioning and hedging demand that can amplify downside.
• Negative Sentiment: High retail/search/volume and reported same-day price drops indicate heavy selling and short-term volatility; that momentum and media attention can accelerate declines in the near term. $IBM stock is down 6% today. Here’s what we see in our data.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on IBM shares. Argus set a $360.00 target price on International Business Machines in a report on Friday, January 30th. Royal Bank Of Canada set a $361.00 price objective on International Business Machines in a research note on Thursday, January 29th. Morgan Stanley set a $304.00 target price on International Business Machines in a research report on Thursday, January 29th. Wedbush increased their price target on International Business Machines from $325.00 to $340.00 and gave the company an “outperform” rating in a report on Thursday, January 29th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of International Business Machines in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, International Business Machines currently has an average rating of “Moderate Buy” and a consensus target price of $330.07.

International Business Machines Price Performance

The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 1.67. The stock has a fifty day simple moving average of $301.11 and a 200-day simple moving average of $284.05. The stock has a market cap of $242.79 billion, a price-to-earnings ratio of 23.30, a price-to-earnings-growth ratio of 2.92 and a beta of 0.69.

International Business Machines (NYSE:IBM) last posted its quarterly earnings data on Wednesday, January 28th. The technology company reported $4.52 earnings per share for the quarter, beating the consensus estimate 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%.International Business Machines’s revenue for the quarter was up 12.2% compared to the same quarter last year. During the same period in the prior year, the business earned $3.92 earnings per share. As a group, equities research analysts expect that International Business Machines Corporation will post 10.78 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be given a $1.68 dividend. This represents a $6.72 annualized dividend and a yield of 2.6%. The ex-dividend date is Tuesday, February 10th. International Business Machines’s dividend payout ratio (DPR) is currently 60.27%.

Insider Activity

In related news, Director David N. Farr acquired 1,000 shares of the business’s stock in a transaction dated Friday, January 30th. The stock was acquired at an average price of $304.00 per share, with a total value of $304,000.00. Following the completion of the transaction, the director owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. This represents a 12.11% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in shares of International Business Machines during the fourth quarter valued at approximately $2,446,429,000. Capital World Investors boosted its stake in International Business Machines by 29.2% during the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after buying an additional 4,976,756 shares in the last quarter. Vanguard Group Inc. increased its holdings in International Business Machines by 2.1% in the 2nd quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company’s stock valued at $28,019,274,000 after buying an additional 1,913,708 shares during the period. Laurel Wealth Advisors LLC raised its stake in shares of International Business Machines by 27,928.2% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 1,903,116 shares of the technology company’s stock valued at $561,001,000 after buying an additional 1,896,326 shares in the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of International Business Machines by 39.6% during the 3rd quarter. First Trust Advisors LP now owns 3,052,880 shares of the technology company’s stock worth $861,401,000 after acquiring an additional 865,253 shares during the period. 58.96% of the stock is currently owned by institutional investors.

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.