International Business Machines (NYSE:IBM) Stock Falls 1% – Time to Sell?

Shares of International Business Machines Corporation (NYSE:IBM) were down 1% on Wednesday. The stock traded as low as $227.49 and last traded at $228.3990. 4,032,209 shares changed hands during trading, a decline of 46% from the average session volume of 7,484,372 shares. The stock had previously closed at $230.78.

Key International Business Machines News

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

• Positive Sentiment: Bank of America expects IBM to deliver a modest third-quarter earnings beat while maintaining its 2026 outlook. The firm reiterated a Buy rating and $280 price target, citing stronger software mix, improving profitability and robust free cash flow. IBM poised for modest third-quarter beat, says Bank of America
• Positive Sentiment: Analysts expect IBM’s software revenue to benefit from artificial-intelligence innovation, strategic partnerships and expanding enterprise-cloud capabilities. Stronger software growth would support the company’s shift toward higher-margin businesses. Can Healthy Increase in Software Revenues Benefit IBM’s Q3 Earnings?
• Positive Sentiment: Consulting revenue is projected to post modest growth, supported by technology demand, AI partnerships and IBM’s cybersecurity acquisition. The contribution may provide additional support to quarterly results. Can Slightly Higher Consulting Revenues Aid IBM’s Q3 Earnings?
• Positive Sentiment: IBM and Siemens are collaborating on nanostack transistor research, combining IBM’s semiconductor work with Siemens’ design and simulation software. The project strengthens IBM’s long-term chip and research narrative, though financial benefits are likely distant. Siemens joins IBM research effort to develop nanostack technology
• Neutral Sentiment: Options traders anticipate an approximately 8% move following next week’s earnings, highlighting elevated uncertainty rather than a clear directional expectation. IBM Stock Set for Near 8% Move After Q3 Earnings Next Week
• Neutral Sentiment: Morgan Stanley raised its price target to $238 but retained an Equal Weight rating, implying limited near-term upside. RBC also reaffirmed an Outperform rating.
• Negative Sentiment: Investor concerns include slowing dividend increases, rising debt and questions about whether IBM can fund AI investment while continuing to reward shareholders. IBM Has Paid Dividends Since 1916

Analyst Upgrades and Downgrades

Several brokerages recently commented on IBM. UBS Group reiterated a “neutral” rating on shares of International Business Machines in a research note on Tuesday. Daiwa Securities Group cut their price target on International Business Machines from $247.00 to $217.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 29th. Citic Securities increased their price objective on International Business Machines from $294.00 to $297.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Finally, Evercore cut their target price on shares of International Business Machines from $310.00 to $250.00 and set an “outperform” rating on the stock in a report on Thursday, July 16th. Nineteen equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $254.96.

International Business Machines Trading Down 1.4%

The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock has a market capitalization of $217.48 billion, a PE ratio of 20.48, a price-to-earnings-growth ratio of 2.17 and a beta of 0.73. The business’s 50-day moving average is $232.08 and its two-hundred day moving average is $243.66.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting the consensus estimate of $2.93. The company had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business’s revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business earned $2.80 EPS. As a group, equities research analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid a $1.69 dividend. The ex-dividend date was Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. International Business Machines’s payout ratio is 59.98%.

Insider Transactions at International Business Machines

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the completion of the transaction, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.27% of the company’s stock.

Institutional Trading of International Business Machines

Several hedge funds and other institutional investors have recently made changes to their positions in IBM. Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines in the 1st quarter worth approximately $26,000. Harborfront Financial Group LLC acquired a new stake in International Business Machines in the 2nd quarter valued at about $27,000. Hara Capital LLC purchased a new position in International Business Machines during the 2nd quarter valued at about $28,000. Bare Financial Services Inc increased its holdings in International Business Machines by 114.6% during the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock valued at $29,000 after acquiring an additional 55 shares in the last quarter. Finally, Caitlin John LLC acquired a new position in International Business Machines during the second quarter worth about $35,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.