BMO Capital Markets Upgrades Kyndryl (NYSE:KD) to "Hold"

Key Points

• BMO Capital Markets upgraded Kyndryl (NYSE:KD) to a "Hold" in a client research note issued Monday.
• The analyst landscape is mixed — Kyndryl has a consensus rating of "Reduce" with an average price target of $23.83, and current coverage splits to 2 Buy, 4 Hold and 3 Sell; notable downward moves include Morgan Stanley (PT cut to $13) and JPMorgan (downgrade to underweight, $16 PT).
• Shares opened at $14.65; in the most recent quarter Kyndryl reported $0.52 EPS (missing the $0.60 estimate) and $3.86B revenue (slightly below expectations), while analysts project about $1.29 EPS for the current fiscal year.

Kyndryl (NYSE:KD - Get Free Report) was upgraded by equities research analysts at BMO Capital Markets to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other research firms have also recently issued reports on KD. Morgan Stanley decreased their price target on shares of Kyndryl from $28.00 to $13.00 and set an "equal weight" rating on the stock in a research note on Tuesday, March 24th. Oppenheimer reaffirmed a "market perform" rating on shares of Kyndryl in a research note on Monday, February 9th. Wall Street Zen raised shares of Kyndryl from a "hold" rating to a "buy" rating in a research note on Sunday, February 22nd. Guggenheim cut shares of Kyndryl from a "buy" rating to a "neutral" rating in a research note on Tuesday, February 10th. Finally, JPMorgan Chase & Co. cut shares of Kyndryl from an "overweight" rating to an "underweight" rating and set a $16.00 price target on the stock. in a research note on Monday, February 9th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Kyndryl presently has a consensus rating of "Reduce" and an average target price of $23.83.

Kyndryl Price Performance

Shares of NYSE KD opened at $14.65 on Monday. The stock has a market cap of $3.30 billion, a price-to-earnings ratio of 13.95 and a beta of 1.83. Kyndryl has a 52 week low of $10.10 and a 52 week high of $44.20. The company's 50-day moving average price is $12.73 and its 200 day moving average price is $21.49. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 1.75.

Kyndryl (NYSE:KD - Get Free Report) last issued its quarterly earnings data on Monday, February 9th. The company reported $0.52 EPS for the quarter, missing analysts' consensus estimates of $0.60 by ($0.08). The business had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.89 billion. Kyndryl had a net margin of 1.65% and a return on equity of 25.91%. Kyndryl's revenue was up .6% on a year-over-year basis. During the same period in the previous year, the company posted $0.51 earnings per share. As a group, research analysts forecast that Kyndryl will post 1.29 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of KD. AQR Capital Management LLC lifted its holdings in shares of Kyndryl by 386.2% during the 3rd quarter. AQR Capital Management LLC now owns 4,187,177 shares of the company's stock worth $125,113,000 after acquiring an additional 3,326,025 shares during the period. Sound Shore Management Inc CT purchased a new position in shares of Kyndryl during the 3rd quarter worth about $61,113,000. Vanguard Group Inc. lifted its holdings in shares of Kyndryl by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 28,186,677 shares of the company's stock worth $846,446,000 after acquiring an additional 1,619,048 shares during the period. Sound Shore Management Inc. CT lifted its holdings in shares of Kyndryl by 46.1% during the 4th quarter. Sound Shore Management Inc. CT now owns 2,974,223 shares of the company's stock worth $78,995,000 after acquiring an additional 939,154 shares during the period. Finally, Norges Bank purchased a new position in shares of Kyndryl during the 4th quarter worth about $19,539,000. 71.53% of the stock is currently owned by hedge funds and other institutional investors.

Kyndryl Company Profile

Kyndryl NYSE: KD is a global managed infrastructure services provider formed in November 2021 through the spin-off of IBM's Managed Infrastructure Services business. The company designs, builds, manages and modernizes critical information technology systems for enterprises worldwide. Kyndryl's core offerings include cloud migration and management, network and edge computing solutions, digital workplace services and IT resiliency and security capabilities.

With a workforce of approximately 90,000 professionals and operations in more than 60 countries, Kyndryl serves clients across a broad range of industries, including financial services, telecommunications, healthcare, manufacturing and retail.

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