International Business Machines (NYSE:IBM) Shares Down 4.8% – Here’s What Happened
by Mitch Edgeman · The Markets DailyShares of International Business Machines Corporation (NYSE:IBM – Get Free Report) traded down 4.8% on Tuesday . The company traded as low as $290.16 and last traded at $291.1080. 7,214,369 shares were traded during trading, an increase of 65% from the average session volume of 4,368,392 shares. The stock had previously closed at $305.67.
Key Headlines Impacting International Business Machines
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: IBM launched “Enterprise Advantage,” an asset‑based consulting service to help clients build, govern and scale agentic AI — a clear revenue/consulting push that supports higher-margin services over time. IBM launches Enterprise Advantage
- Positive Sentiment: Partnership with e& to deploy enterprise-grade agentic AI for governance, compliance and risk — expands IBM’s watsonx footprint in telecom/enterprise customers and validates go-to-market momentum announced at Davos. e& and IBM unveil agentic AI
- Positive Sentiment: IBM is rolling out watsonx-powered digital experiences with the Recording Academy around the 2026 Grammys — a marketing/brand use case that can broaden awareness for watsonx consumer-facing demonstrations. IBM and the Recording Academy
- Positive Sentiment: DBS Bank upgraded IBM from “hold” to “moderate buy,” and several analyst note compilations show bullish near‑term forecasts — supports sentiment that analysts expect more upside. Analyst upgrade by DBS
- Neutral Sentiment: Coverage and valuation pieces examine IBM’s recent share strength and long‑term returns; these are mixed reads for investors deciding whether current levels reflect fair value. Valuation assessment
- Neutral Sentiment: IBM Institute for Business Value published a study projecting AI-driven revenue gains through 2030 — positive long-term thesis but not an immediate earnings catalyst. IBM AI study
- Negative Sentiment: Technical and market-flow pressure: trading volume is elevated and the stock sits below its 50‑day moving average, which can prompt short‑term selling and profit-taking despite positive fundamentals. Market volatility/dividend piece
Wall Street Analysts Forecast Growth
Several analysts have commented on IBM shares. Weiss Ratings raised shares of International Business Machines from a “hold (c+)” rating to a “buy (b)” rating in a research report on Saturday, October 25th. Wall Street Zen downgraded shares of International Business Machines from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. BMO Capital Markets increased their target price on shares of International Business Machines from $300.00 to $305.00 and gave the company a “market perform” rating in a research report on Thursday, October 23rd. Erste Group Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating in a research note on Friday, December 5th. Finally, Jefferies Financial Group raised International Business Machines from a “hold” rating to a “buy” rating and upped their price target for the stock from $300.00 to $360.00 in a research report on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $305.29.
Get Our Latest Research Report on IBM
International Business Machines Trading Down 4.8%
The stock’s fifty day simple moving average is $303.39 and its 200-day simple moving average is $282.50. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.93 and a quick ratio of 0.89. The firm has a market cap of $272.11 billion, a PE ratio of 34.82, a PEG ratio of 2.96 and a beta of 0.70.
International Business Machines (NYSE:IBM – Get Free Report) last announced its quarterly earnings data on Wednesday, October 22nd. The technology company reported $2.65 earnings per share for the quarter, beating analysts’ consensus estimates of $2.45 by $0.20. The firm had revenue of $16.33 billion for the quarter, compared to analyst estimates of $16.10 billion. International Business Machines had a net margin of 12.09% and a return on equity of 37.76%. The business’s quarterly revenue was up 9.1% compared to the same quarter last year. During the same period in the previous year, the company earned $2.30 earnings per share. On average, sell-side analysts forecast that International Business Machines Corporation will post 10.78 earnings per share for the current year.
International Business Machines Dividend Announcement
The company also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Monday, November 10th were issued a dividend of $1.68 per share. The ex-dividend date of this dividend was Monday, November 10th. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.3%. International Business Machines’s payout ratio is 80.38%.
Hedge Funds Weigh In On International Business Machines
A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its position in International Business Machines by 0.8% during the 3rd quarter. Vanguard Group Inc. now owns 95,776,307 shares of the technology company’s stock worth $27,024,243,000 after purchasing an additional 724,832 shares during the period. State Street Corp lifted its holdings in shares of International Business Machines by 0.3% in the 2nd quarter. State Street Corp now owns 54,536,963 shares of the technology company’s stock valued at $16,076,406,000 after buying an additional 147,721 shares during the period. Geode Capital Management LLC boosted its stake in shares of International Business Machines by 1.9% in the second quarter. Geode Capital Management LLC now owns 21,936,235 shares of the technology company’s stock worth $6,444,527,000 after buying an additional 400,131 shares during the last quarter. Capital World Investors grew its holdings in International Business Machines by 13.9% during the third quarter. Capital World Investors now owns 17,045,156 shares of the technology company’s stock worth $4,809,461,000 after acquiring an additional 2,077,506 shares during the period. Finally, Legal & General Group Plc raised its position in International Business Machines by 2.5% during the third quarter. Legal & General Group Plc now owns 7,302,722 shares of the technology company’s stock valued at $2,060,536,000 after acquiring an additional 176,219 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.
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.