International Business Machines (NYSE:IBM) Trading Down 1% – Here’s What Happened

International Business Machines Corporation (NYSE:IBM)’s share price traded down 1% on Thursday . The company traded as low as $228.44 and last traded at $233.5240. 4,237,961 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 8,201,438 shares. The stock had previously closed at $235.92.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: FedRAMP authorization expands IBM’s government opportunity. IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools for mission-critical infrastructure and equipment. The approval could support new public-sector bookings and strengthens IBM’s position in regulated cloud markets. IBM Maximo Application Suite Achieves FedRAMP Moderate Authorization
• Positive Sentiment: Quantum computing remains a long-term catalyst. CEO Arvind Krishna said IBM expects quantum computing to begin making a meaningful contribution to revenue and profit around 2028 or 2029. The outlook reinforces IBM’s growth narrative, although the financial impact is still several years away. IBM CEO Predicts Quantum Computing Will Become a Meaningful Business
• Neutral Sentiment: IBM’s blockchain intellectual property sale provides strategic context. IBM reportedly sold nearly 1,000 blockchain patents to Circle, potentially monetizing intellectual property while allowing Circle to build regulated stablecoin infrastructure. The transaction may offer IBM proceeds and a partner ecosystem, but its direct effect on near-term revenue is unclear. Circle’s IBM Patent Deal Could Redraw the Stablecoin Infrastructure Race
• Negative Sentiment: Investor litigation investigations add an overhang. Two law firms announced investigations into whether IBM made misleading statements about a slowdown in its IBM Z mainframe business. Such announcements do not establish wrongdoing, but they raise potential legal costs and increase scrutiny following the stock’s recent weakness. IBM Securities Fraud Investigation
• Negative Sentiment: Kyndryl’s results highlighted IBM-related headwinds. Kyndryl reported growth in U.S. revenue and consulting, but continued declines tied to IBM-related business and workforce-rebalancing charges suggest pressure in portions of IBM’s legacy infrastructure ecosystem. Broader market leadership also shifted toward semiconductor and AI stocks, potentially reducing investor preference for IBM’s more mature businesses. Kyndryl Earnings Call Highlights

Analyst Upgrades and Downgrades

A number of research firms have recently commented on IBM. Bank of America raised their price objective on International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a report on Monday, July 6th. HSBC set a $175.00 price target on shares of International Business Machines and gave the company a “reduce” rating in a research report on Thursday, July 16th. Weiss Ratings downgraded shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, June 24th. Wall Street Zen downgraded International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday, July 18th. Finally, Citigroup reduced their price objective on International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a research note on Friday, July 24th. Fifteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, International Business Machines has an average rating of “Moderate Buy” and an average target price of $265.40.

International Business Machines Stock Down 1.0%

The firm has a market cap of $220.01 billion, a P/E ratio of 20.72, a PEG ratio of 2.31 and a beta of 0.70. The firm’s 50-day moving average price is $260.43 and its 200 day moving average price is $255.93. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to analysts’ expectations of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.International Business Machines’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.80 earnings per share. On average, equities research analysts expect that International Business Machines Corporation will post 12.34 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 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 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines’s dividend payout ratio is 59.98%.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC boosted its holdings in International Business Machines by 12.4% in the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after purchasing an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC grew its stake in shares of International Business Machines by 10.6% in the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock worth $571,000 after acquiring an additional 186 shares during the last quarter. Jump Financial LLC bought a new position in International Business Machines during the second quarter worth $211,000. Ieq Capital LLC increased its position in International Business Machines by 2.2% during the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after acquiring an additional 843 shares during the period. Finally, Vivaldi Capital Management LP raised its stake in International Business Machines by 11.6% during the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock valued at $300,000 after purchasing an additional 106 shares during the last quarter. 58.96% of the stock is currently 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.