International Business Machines (NYSE:IBM) Shares Down 2.7% – Here’s What Happened

Shares of International Business Machines Corporation (NYSE:IBM) traded down 2.7% on Thursday. The company traded as low as $245.72 and last traded at $247.3980. Approximately 5,244,844 shares were traded during trading, a decline of 29% from the average daily volume of 7,337,301 shares. The stock had previously closed at $254.32.

Key International Business Machines News

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

• Positive Sentiment: IBM, AMD and Oak Ridge National Laboratory introduced a co-design platform for quantum error correction, combining quantum and high-performance computing. The initiative supports the U.S. Department of Energy’s goal of advancing toward a scientifically relevant quantum computer by 2028; it may strengthen IBM’s position in quantum computing, though the announcement does not specify near-term revenue. Reuters article
• Neutral Sentiment: A global BFSI digital-transformation report projects the market will grow from $88.2 billion in 2024 to $220.2 billion by 2030 and lists IBM among companies pursuing AI-led opportunities. This suggests a sizable industry opportunity, but does not identify specific IBM contracts or expected sales. Yahoo Finance article
• Neutral Sentiment: IBM CEO Arvind Krishna said running AI can cost more than training it and warned that rationing AI use is a poor strategy. The comments underscore the importance of managing inference costs, but the article’s headline alone gives no specific financial impact for IBM. Fortune article
• Negative Sentiment: Recent analysis cites AI-disruption fears, margin pressure and competition as risks for IBM. It also notes hybrid-cloud demand and rising earnings estimates as counterpoints, so the concerns are not the only factor in the investment outlook. Yahoo Finance article

Analyst Ratings Changes

IBM has been the topic of several recent research reports. Wall Street Zen raised International Business Machines from a “sell” rating to a “hold” rating in a research note on Saturday, October 24th. Citic Securities raised their price objective on International Business Machines from $294.00 to $297.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. Citigroup boosted their target price on shares of International Business Machines from $245.00 to $280.00 and gave the company a “buy” rating in a report on Thursday, October 22nd. Weiss Ratings cut shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, October 29th. Finally, Truist Financial set a $260.00 price target on International Business Machines in a research report on Thursday, October 22nd. Nineteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $266.12.

International Business Machines Stock Down 2.7%

The company has a 50 day moving average price of $236.29 and a two-hundred day moving average price of $249.17. The company has a debt-to-equity ratio of 1.57, a current ratio of 0.85 and a quick ratio of 0.80. The stock has a market cap of $233.82 billion, a PE ratio of 21.09, a PEG ratio of 2.46 and a beta of 0.78.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.85 by $0.10. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. The firm had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. During the same period in the prior year, the company posted $2.65 earnings per share. The company’s quarterly revenue was up 4.7% on a year-over-year basis. Analysts expect that International Business Machines Corporation will post 12.41 EPS for the current year.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines’s dividend payout ratio (DPR) is presently 57.63%.

Insider Buying and Selling at International Business Machines

In other news, SVP Robert Thomas sold 25,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president directly owned 47,800 shares of the company’s stock, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is owned by insiders.

Institutional Investors Weigh In On International Business Machines

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Silver Grove Financial Group Inc. grew its stake in International Business Machines by 30.1% in the 3rd quarter. Silver Grove Financial Group Inc. now owns 856 shares of the technology company’s stock worth $188,000 after acquiring an additional 198 shares during the period. Illinois Municipal Retirement Fund lifted its stake in shares of International Business Machines by 0.6% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 63,626 shares of the technology company’s stock worth $13,993,000 after purchasing an additional 405 shares during the period. Inspire Trust Co. N.A. lifted its stake in shares of International Business Machines by 1.7% during the 3rd quarter. Inspire Trust Co. N.A. now owns 30,500 shares of the technology company’s stock worth $6,708,000 after purchasing an additional 500 shares during the period. Renasant Bank acquired a new stake in shares of International Business Machines during the third quarter worth $357,000. Finally, Triton Wealth Management PLLC boosted its holdings in shares of International Business Machines by 68.3% during the third quarter. Triton Wealth Management PLLC now owns 2,511 shares of the technology company’s stock worth $552,000 after purchasing an additional 1,019 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.