International Business Machines (NYSE:IBM) Trading Down 1.3% – Here’s Why

International Business Machines Corporation (NYSE:IBM)’s stock price traded down 1.3% on Tuesday . The stock traded as low as $271.29 and last traded at $277.2150. 8,737,008 shares were traded during trading, an increase of 22% from the average session volume of 7,146,249 shares. The stock had previously closed at $280.82.

International Business Machines News Roundup

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

• Positive Sentiment: IBM announced a major new AI partnership with Google Cloud, including a consulting practice that pairs IBM Consulting Advantage with Gemini Enterprise AI to speed enterprise adoption and system modernization. This supports IBM’s narrative as a growing AI services and software player. As IBM Unlocks a ‘Multi-Billion-Dollar Opportunity’ With Google, The Stock Is a Buy
• Positive Sentiment: CEO Arvind Krishna highlighted IBM’s quantum computing potential, AI use cases, and profit strategy at the Mizuho Technology Conference, reinforcing confidence in the company’s long-term growth roadmap. IBM CEO Krishna on Quantum Advantage, Profit Strategy
• Positive Sentiment: Several upbeat reports argued IBM is a long-term buy, citing its recurring-revenue software engine, durable cash generation, and expanding AI/quantum exposure. Wall Street Is Missing the Bigger Picture: Why This Legacy Tech Stalwart Is a Screaming Buy Right Now
• Neutral Sentiment: IBM expanded its AI learning and workforce upskilling initiatives through SkillsBuild and the UK AI Skills Hub. This strengthens IBM’s AI ecosystem, but the direct near-term financial impact is less clear. IBM AI Upskilling Push Tests Long Term Growth Story For Investors
• Neutral Sentiment: IBM’s new $10 billion quantum computing investment is a big strategic bet that could create a future growth driver, but it also raises execution risk and may pressure margins before returns are visible. IBM Stock Slides as Company Bets $10 Billion on Quantum Computing
• Negative Sentiment: Some commentary noted concerns that IBM’s AI governance and control gaps remain a challenge for enterprise customers, which could slow adoption if buyers see risk in large-scale deployment. New IBM Study Finds CIOs and CTOs Face Growing AI Control Gap as Enterprise Deployment Scales

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. JPMorgan Chase & Co. lowered their target price on International Business Machines from $317.00 to $283.00 and set a “neutral” rating on the stock in a research note on Wednesday, March 18th. Citigroup lifted their target price on International Business Machines from $285.00 to $375.00 and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Erste Group Bank cut International Business Machines from a “buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Jefferies Financial Group lowered their target price on International Business Machines from $370.00 to $320.00 and set a “buy” rating on the stock in a research note on Monday, April 20th. Finally, Wedbush set a $350.00 target price on International Business Machines in a research note on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $304.17.

International Business Machines Stock Down 1.3%

The stock has a 50 day moving average of $247.27 and a 200-day moving average of $270.69. The firm has a market capitalization of $260.55 billion, a P/E ratio of 24.51, a PEG ratio of 2.95 and a beta of 0.66. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80.

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 analysts’ consensus estimates 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 business had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. During the same period in the previous year, the business posted $1.60 EPS. The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. Research analysts predict that International Business Machines Corporation will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be paid a $1.69 dividend. The ex-dividend date is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 2.4%. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is presently 59.77%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in IBM. VIRGINIA RETIREMENT SYSTEMS ET Al raised its stake in shares of International Business Machines by 424.6% in the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock worth $77,234,000 after buying an additional 211,040 shares during the period. GLOBALT Investments LLC GA raised its stake in shares of International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock worth $5,417,000 after buying an additional 2,930 shares during the period. Waverton Investment Management Ltd raised its stake in shares of International Business Machines by 3.3% in the third quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company’s stock worth $280,439,000 after buying an additional 32,072 shares during the period. Newbridge Financial Services Group Inc. raised its stake in shares of International Business Machines by 30.0% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock worth $3,887,000 after buying an additional 3,029 shares during the period. Finally, NEOS Investment Management LLC raised its stake in shares of International Business Machines by 51.7% in the third quarter. NEOS Investment Management LLC now owns 114,395 shares of the technology company’s stock worth $32,278,000 after buying an additional 38,973 shares during the period. Hedge funds and other institutional investors 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.