Kyndryl Holdings, Inc. (NYSE:KD) Given Average Rating of "Reduce" by Analysts

Key Points

• Analysts assign Kyndryl an average “Reduce” rating: Three of nine covering firms recommend selling, while six advise holding. The average 12-month price target is $16.50.
• Kyndryl reported quarterly EPS of -$0.12, beating estimates of -$0.16, but revenue of $3.62 billion fell short of expectations and declined 3.3% year over year.
• The stock opened at $12.58, near its 50-day and 200-day moving averages, and has traded between $10.10 and $33.90 over the past year. Institutional investors own approximately 71.53% of the company.

Shares of Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) have earned a consensus recommendation of "Reduce" from the nine ratings firms that are presently covering the company, MarketBeat reports. Three analysts have rated the stock with a sell recommendation and six have issued a hold recommendation on the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $16.50.

Several equities research analysts have commented on KD shares. Wall Street Zen downgraded Kyndryl from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. JPMorgan Chase & Co. raised their price target on Kyndryl from $13.00 to $14.00 and gave the company an "underweight" rating in a report on Monday, August 10th. Scotiabank lowered their price target on Kyndryl from $16.50 to $15.00 and set a "sector perform" rating for the company in a research report on Friday, May 8th. Zacks Research cut shares of Kyndryl from a "hold" rating to a "strong sell" rating in a research note on Friday, August 14th. Finally, Susquehanna downgraded shares of Kyndryl from a "positive" rating to a "neutral" rating and cut their price objective for the company from $16.00 to $13.00 in a research report on Thursday, May 21st.

Kyndryl Stock Performance

Shares of KD opened at $12.58 on Friday. The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 1.96. The business's 50 day moving average price is $12.37 and its 200-day moving average price is $12.87. Kyndryl has a 52 week low of $10.10 and a 52 week high of $33.90. The stock has a market cap of $2.74 billion, a P/E ratio of 34.00 and a beta of 1.65.

Kyndryl (NYSE:KD - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.12) earnings per share for the quarter, beating analysts' consensus estimates of ($0.16) by $0.04. The company had revenue of $3.62 billion during the quarter, compared to analyst estimates of $3.64 billion. Kyndryl had a return on equity of 12.24% and a net margin of 0.58%.The firm's revenue for the quarter was down 3.3% on a year-over-year basis. During the same quarter last year, the company earned $0.37 EPS. Equities research analysts anticipate that Kyndryl will post 1.36 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Royal Bank of Canada increased its position in shares of Kyndryl by 50.2% during the first quarter. Royal Bank of Canada now owns 148,178 shares of the company's stock valued at $4,653,000 after acquiring an additional 49,504 shares in the last quarter. Integrated Wealth Concepts LLC lifted its position in Kyndryl by 15.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 8,025 shares of the company's stock valued at $252,000 after acquiring an additional 1,093 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Kyndryl by 1.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 733,068 shares of the company's stock valued at $23,018,000 after acquiring an additional 11,177 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in Kyndryl by 116.9% in the 2nd 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 boosted its stake in Kyndryl by 29.8% during the 2nd quarter. First Trust Advisors LP now owns 408,123 shares of the company's stock valued at $17,125,000 after purchasing an additional 93,726 shares during the last quarter. Institutional investors own 71.53% of the company's stock.

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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