Hsbc Holdings PLC Cuts Stock Holdings in Kyndryl Holdings, Inc. $KD

Key Points

• Hsbc Holdings reduced its Kyndryl stake by 70.7% in the first quarter, selling 175,317 shares and retaining 72,813 shares worth approximately $947,000. Institutional investors collectively own 71.53% of Kyndryl’s stock.
• Analyst sentiment is cautious: Kyndryl has an average “Reduce” rating, with seven Hold ratings and two Sell ratings, while the consensus price target is $16.67.
• Kyndryl’s latest quarterly earnings missed expectations, reporting $0.18 earnings per share versus a $0.43 consensus estimate. Revenue reached $3.77 billion, slightly above forecasts but down 0.8% year over year.

Hsbc Holdings PLC reduced its stake in Kyndryl Holdings, Inc. (NYSE:KD - Free Report) by 70.7% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 72,813 shares of the company's stock after selling 175,317 shares during the period. Hsbc Holdings PLC's holdings in Kyndryl were worth $947,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Royal Bank of Canada increased its holdings in Kyndryl by 50.2% during the 1st quarter. Royal Bank of Canada now owns 148,178 shares of the company's stock worth $4,653,000 after purchasing an additional 49,504 shares during the period. Integrated Wealth Concepts LLC increased its stake in shares of Kyndryl by 15.8% during the first quarter. Integrated Wealth Concepts LLC now owns 8,025 shares of the company's stock worth $252,000 after buying an additional 1,093 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Kyndryl by 1.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 733,068 shares of the company's stock worth $23,018,000 after buying an additional 11,177 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in Kyndryl by 116.9% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,616 shares of the company's stock valued at $110,000 after acquiring an additional 1,410 shares in the last quarter. Finally, First Trust Advisors LP raised its holdings in Kyndryl by 29.8% in the second quarter. First Trust Advisors LP now owns 408,123 shares of the company's stock valued at $17,125,000 after acquiring an additional 93,726 shares in the last quarter. 71.53% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have commented on KD. Scotiabank lowered their price target on shares of Kyndryl from $16.50 to $15.00 and set a "sector perform" rating for the company in a report on Friday, May 8th. Susquehanna lowered shares of Kyndryl from a "positive" rating to a "neutral" rating and reduced their price objective for the company from $16.00 to $13.00 in a report on Thursday, May 21st. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Kyndryl in a research report on Monday, June 15th. BMO Capital Markets initiated coverage on shares of Kyndryl in a research note on Monday, April 20th. They set a "market perform" rating and a $15.00 target price for the company. Finally, Wall Street Zen lowered Kyndryl from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Seven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Kyndryl currently has an average rating of "Reduce" and a consensus target price of $16.67.

Kyndryl Trading Up 5.3%

NYSE:KD opened at $14.06 on Thursday. Kyndryl Holdings, Inc. has a 12-month low of $10.10 and a 12-month high of $39.00. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 1.77. The stock's 50 day simple moving average is $11.90 and its 200-day simple moving average is $14.20. The firm has a market cap of $3.10 billion, a P/E ratio of 16.54 and a beta of 1.67.

Kyndryl (NYSE:KD - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.25). Kyndryl had a return on equity of 20.43% and a net margin of 1.31%.The company had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.74 billion. During the same period in the prior year, the business earned $0.52 earnings per share. Kyndryl's revenue for the quarter was down .8% compared to the same quarter last year. Equities analysts anticipate that Kyndryl Holdings, Inc. will post 1.54 EPS for the current year.

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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