International Business Machines (NYSE:IBM) Cut to “Sell” at Wall Street Zen

Wall Street Zen lowered shares of International Business Machines (NYSE:IBM) from a hold rating to a sell rating in a research note released on Saturday.

Several other research firms have also issued reports on IBM. DZ Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 price target on the stock in a research report on Friday, April 24th. JPMorgan Chase & Co. reduced their price objective on International Business Machines from $291.00 to $250.00 and set an “overweight” rating for the company in a research note on Friday. HSBC set a $175.00 target price on International Business Machines and gave the stock a “reduce” rating in a report on Thursday. Piper Sandler raised International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Finally, KeyCorp downgraded International Business Machines to a “sector weight” rating in a report on Tuesday, June 23rd. Fifteen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, International Business Machines has an average rating of “Moderate Buy” and an average price target of $289.83.

International Business Machines Stock Performance

NYSE:IBM opened at $213.18 on Friday. International Business Machines has a twelve month low of $204.44 and a twelve month high of $332.46. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The company has a 50-day moving average of $263.63 and a 200-day moving average of $262.66. The firm has a market cap of $200.36 billion, a price-to-earnings ratio of 18.85, a price-to-earnings-growth ratio of 2.28 and a beta of 0.68.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. During the same period in the previous year, the firm earned $1.60 EPS. The business’s revenue for the quarter was up 9.5% on a year-over-year basis. Analysts forecast that International Business Machines will post 12.28 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were paid a $1.69 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 3.2%. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is 59.77%.

Institutional Trading of International Business Machines

Several large investors have recently added to or reduced their stakes in IBM. Foster Group Inc. lifted its stake in International Business Machines by 1.3% during the fourth quarter. Foster Group Inc. now owns 2,507 shares of the technology company’s stock worth $742,000 after purchasing an additional 33 shares during the last quarter. CVA Family Office LLC increased its position in shares of International Business Machines by 1.4% during the fourth quarter. CVA Family Office LLC now owns 2,389 shares of the technology company’s stock worth $708,000 after purchasing an additional 33 shares in the last quarter. New Covenant Trust Company N.A. lifted its holdings in shares of International Business Machines by 3.8% in the 4th quarter. New Covenant Trust Company N.A. now owns 905 shares of the technology company’s stock valued at $264,000 after purchasing an additional 33 shares during the last quarter. McGowan Group Asset Management Inc. boosted its position in shares of International Business Machines by 1.2% in the 4th quarter. McGowan Group Asset Management Inc. now owns 2,693 shares of the technology company’s stock valued at $798,000 after purchasing an additional 33 shares during the period. Finally, Sandbox Financial Partners LLC increased its position in International Business Machines by 0.4% during the fourth quarter. Sandbox Financial Partners LLC now owns 8,969 shares of the technology company’s stock worth $2,657,000 after buying an additional 34 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about International Business Machines

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

• Negative Sentiment: IBM’s surprise Q2 pre-announcement and profit warning triggered multiple analyst target cuts, reinforcing fears that near-term earnings and guidance may be weaker than expected. IBM Stock: Analysts Cut Targets After Company’s Surprise Profit Warning
• Negative Sentiment: Several reports say IBM’s recent plunge erased tens of billions in market value, with investors worried the company misjudged the pace of AI budget shifts and may face additional downside if full-year guidance is reduced. Why Did IBM Stock Plunge 25% in One Day? Preliminary Q2 Results Were Weak, But Not Terrible
• Negative Sentiment: Law firms have launched investigations and shareholder-rights actions over alleged misrepresentations tied to IBM Z product slowdown disclosures, adding legal overhang to the stock. IBM Legal News: IBM Investigated for Misrepresentations about its IBM Z Product Slowdown – Investors Notified to Contact BFA Law
• Neutral Sentiment: Some analysts remain constructive, arguing IBM’s current valuation now looks much cheaper after the selloff and that the stock could rebound if management restores confidence on software, consulting, and AI execution. Could IBM Be Worth More Broken Apart? Stifel Runs the Numbers
• Neutral Sentiment: Preview pieces ahead of the full Q2 report suggest IBM’s consulting and software revenue trends may still benefit from AI, cloud, and cybersecurity demand, but investors are waiting for hard evidence after the warning. Can Y/Y Higher Consulting Revenues Benefit IBM’s Q2 Earnings?

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.