International Business Machines (NYSE:IBM) Trading Down 6.4% – Should You Sell?

International Business Machines Corporation (NYSE:IBM) was down 6.4% on Tuesday . The company traded as low as $283.85 and last traded at $294.7250. Approximately 11,307,030 shares were traded during mid-day trading, an increase of 128% from the average daily volume of 4,956,871 shares. The stock had previously closed at $314.73.

Key International Business Machines News

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

• Positive Sentiment: Q4 results and outlook surprised to the upside, driving recent buying and renewed ETF interest in funds with heavy IBM exposure. ETFs to Watch as IBM Shares Jump Following Q4 Earnings Beat
• Positive Sentiment: Several Wall Street firms lifted price targets after the quarter (Stifel among them), supporting the near‑term bull case. Bernstein and Stifel Lift IBM Price Targets After Q4 Results
• Positive Sentiment: Company is accelerating its enterprise AI strategy and added a high‑profile board member (PepsiCo chief), which bolsters execution/board depth for strategic AI initiatives. IBM Deepens Enterprise AI Push As Board Adds PepsiCo Chief
• Positive Sentiment: Large government and defense contracts (e.g., UK defense modernization) provide recurring revenue tails and validate IBM’s systems/AI work for public-sector clients. Can IBM’s Lucrative Federal Contracts Boost Its Future Growth?
• Neutral Sentiment: Data on institutional holdings and insider moves is mixed — some funds added shares while others trimmed positions, leaving ownership flows ambivalent. $IBM stock is up 2% today. Here’s what we see in our data.
• Neutral Sentiment: Longer‑term, IBM’s positioning in AI and quantum computing is getting renewed attention; that’s strategic upside but longer‑dated and uncertain. Quantum Computing News
• Negative Sentiment: Several analysts and valuation pieces warn the stock may be close to full valuation after the recent run, prompting profit‑taking and caution among some investors. Assessing IBM (IBM) Valuation After Recent Share Price Strength And Mixed Fair Value Signals
• Negative Sentiment: Even price‑target raises came with warnings about valuation (Bernstein flagged the stock as richly valued despite lifting its target), a direct reason some traders trimmed exposure. Bernstein raises International Business Machines (IBM) target but flags full valuation after Q4 beat
• Negative Sentiment: Market commentary flagged that the recent rally leaves some investors asking whether it’s “too late” to buy — raising the likelihood of short‑term volatility. IBM Shares Pop on Strong AI Growth. Is It Too Late to Buy the Stock?

Analysts Set New Price Targets

IBM has been the subject of a number of research reports. Weiss Ratings reaffirmed a “buy (b)” rating on shares of International Business Machines in a report on Thursday, January 22nd. BMO Capital Markets reaffirmed a “market perform” rating and issued a $350.00 price target on shares of International Business Machines in a report on Thursday, January 29th. Dbs Bank upgraded shares of International Business Machines from a “hold” rating to a “moderate buy” rating in a research note on Monday, January 19th. Oppenheimer set a $380.00 target price on shares of International Business Machines and gave the stock an “outperform” rating in a report on Thursday, January 29th. Finally, Morgan Stanley set a $304.00 target price on International Business Machines in a report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $330.07.

International Business Machines Stock Down 6.4%

The firm’s 50 day simple moving average is $303.05 and its 200 day simple moving average is $283.38. The company has a market cap of $275.49 billion, a price-to-earnings ratio of 26.43, a price-to-earnings-growth ratio of 3.08 and a beta of 0.69. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.33 by $0.19. The business had revenue of $19.69 billion during the quarter, compared to analyst estimates of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business’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 company posted $3.92 EPS. Sell-side analysts anticipate that International Business Machines Corporation will post 10.78 EPS for the current fiscal year.

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be paid a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Tuesday, February 10th. International Business Machines’s payout ratio is currently 60.27%.

Insiders Place Their Bets

In related news, Director David N. Farr bought 1,000 shares of the firm’s stock in a transaction that occurred on Friday, January 30th. The stock was purchased at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the transaction, the director directly owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. This represents a 12.11% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.18% of the stock is owned by insiders.

Institutional Trading of International Business Machines

Institutional investors have recently made changes to their positions in the stock. Family CFO Inc bought a new stake in International Business Machines during the fourth quarter worth approximately $25,000. Winnow Wealth LLC acquired a new position in shares of International Business Machines during the 2nd quarter valued at $27,000. Joseph Group Capital Management bought a new stake in shares of International Business Machines in the 4th quarter worth $28,000. Mountain Hill Investment Partners Corp. acquired a new stake in shares of International Business Machines in the third quarter valued at $28,000. Finally, SWAN Capital LLC bought a new position in International Business Machines during the third quarter valued at about $28,000. 58.96% of the stock is owned by institutional investors and hedge funds.

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.