AXQ Capital LP Acquires 102,960 Shares of Kyndryl Holdings, Inc. $KD

Key Points

• AXQ Capital significantly increased its Kyndryl stake by 102,960 shares, lifting its holdings 171.1% to 163,122 shares valued at approximately $1.85 million. Institutional investors collectively own 71.53% of the company.
• Analyst sentiment remains cautious: Kyndryl has a consensus “Reduce” rating, with six Hold ratings and three Sell ratings and an average price target of $16.50. Recent analysts lowered ratings or price targets, including Susquehanna’s cut to $13.
• Kyndryl reported quarterly revenue of $3.62 billion, down 3.3% year over year and slightly below estimates, while adjusted EPS of negative $0.12 exceeded expectations. Shares opened at $13.16, well below their 12-month high of $33.90.

AXQ Capital LP increased its holdings in Kyndryl Holdings, Inc. (NYSE:KD - Free Report) by 171.1% during the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 163,122 shares of the company's stock after buying an additional 102,960 shares during the period. AXQ Capital LP owned 0.07% of Kyndryl worth $1,845,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in the business. Trust Co. of Vermont bought a new position in Kyndryl in the second quarter worth about $25,000. Versant Capital Management Inc lifted its position in shares of Kyndryl by 104.1% during the 2nd quarter. Versant Capital Management Inc now owns 2,418 shares of the company's stock valued at $27,000 after buying an additional 1,233 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in Kyndryl during the 4th quarter valued at approximately $29,000. Western Wealth Management LLC purchased a new stake in shares of Kyndryl during the 1st quarter valued at about $29,000. Finally, Quarry LP bought a new stake in shares of Kyndryl during the fourth quarter valued at approximately $31,000. 71.53% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on KD. Zacks Research lowered Kyndryl from a "hold" rating to a "strong sell" rating in a report on Friday, August 14th. BMO Capital Markets restated a "market perform" rating and issued a $16.00 price objective on shares of Kyndryl in a report on Thursday, August 6th. Weiss Ratings cut Kyndryl from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, August 6th. Scotiabank decreased their price objective on shares of Kyndryl from $16.50 to $15.00 and set a "sector perform" rating for the company in a research report on Friday, May 8th. Finally, Susquehanna downgraded shares of Kyndryl from a "positive" rating to a "neutral" rating and lowered their target price for the stock from $16.00 to $13.00 in a research note on Thursday, May 21st. Six equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus price target of $16.50.

Kyndryl Stock Performance

Shares of KD stock opened at $13.16 on Friday. Kyndryl Holdings, Inc. has a 12-month low of $10.10 and a 12-month high of $33.90. The company has a debt-to-equity ratio of 1.96, a current ratio of 0.85 and a quick ratio of 0.85. The firm has a market capitalization of $2.87 billion, a price-to-earnings ratio of 35.57 and a beta of 1.64. The business has a 50 day simple moving average of $12.75 and a 200 day simple moving average of $12.58.

Kyndryl (NYSE:KD - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.04. Kyndryl had a return on equity of 12.24% and a net margin of 0.58%.The firm had revenue of $3.62 billion for the quarter, compared to analyst estimates of $3.64 billion. During the same period in the previous year, the company earned $0.37 earnings per share. Kyndryl's revenue was down 3.3% compared to the same quarter last year. On average, equities research analysts anticipate that Kyndryl Holdings, Inc. will post 1.36 EPS for the current year.

Kyndryl 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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