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

Key Points

• Analysts have an average “Reduce” rating on Kyndryl, with two sell ratings and seven holds. The average 12-month price target is $16.67, above the stock’s $12.79 opening price.
• Kyndryl reported quarterly EPS of $0.18, missing the $0.43 consensus estimate, while revenue of $3.77 billion slightly exceeded expectations and declined 0.8% year over year.
• Institutional investors own 71.53% of the company, with major firms including Vanguard, AQR Capital Management, Dimensional Fund Advisors and Geode Capital increasing their holdings.

Shares of Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) have been assigned an average recommendation of "Reduce" from the nine research firms that are currently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation and seven have given a hold recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $16.6667.

A number of brokerages have issued reports on KD. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Kyndryl in a research report on Monday, June 15th. Zacks Research upgraded shares of Kyndryl from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. BMO Capital Markets assumed coverage on Kyndryl in a research note on Monday, April 20th. They issued a "market perform" rating and a $15.00 price objective on the stock. Susquehanna lowered 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 report on Thursday, May 21st. Finally, Scotiabank decreased their price target on Kyndryl from $16.50 to $15.00 and set a "sector perform" rating on the stock in a research report on Friday, May 8th.

Kyndryl Trading Up 6.2%

Shares of NYSE KD opened at $12.79 on Tuesday. The company has a debt-to-equity ratio of 1.77, a quick ratio of 0.88 and a current ratio of 0.88. The stock has a market cap of $2.82 billion, a price-to-earnings ratio of 15.05 and a beta of 1.67. Kyndryl has a 52 week low of $10.10 and a 52 week high of $39.98. The business has a 50 day simple moving average of $11.84 and a 200 day simple moving average of $14.39.

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in shares of Kyndryl by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 28,331,302 shares of the company's stock valued at $752,479,000 after buying an additional 144,625 shares during the period. AQR Capital Management LLC lifted its stake in shares of Kyndryl by 53.9% during the fourth quarter. AQR Capital Management LLC now owns 6,443,037 shares of the company's stock valued at $170,934,000 after acquiring an additional 2,255,860 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Kyndryl by 1.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,684,443 shares of the company's stock valued at $124,420,000 after acquiring an additional 76,614 shares during the last quarter. Geode Capital Management LLC increased its position in Kyndryl by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 4,456,962 shares of the company's stock worth $118,997,000 after purchasing an additional 63,846 shares during the period. Finally, Sound Shore Management Inc. CT increased its position in Kyndryl by 39.5% in the first quarter. Sound Shore Management Inc. CT now owns 4,147,984 shares of the company's stock worth $54,422,000 after purchasing an additional 1,173,761 shares during the period. 71.53% of the stock is currently owned by institutional investors.

About Kyndryl

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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