Kyndryl (NYSE:KD) Downgraded by Zacks Research to Strong Sell

Key Points

• Kyndryl has been downgraded from a "hold" to a "strong sell" rating by Zacks Research, indicating a negative outlook from analysts.
• Other analysts have mixed views: Wall Street Zen downgraded their rating from "strong-buy" to "buy," while Oppenheimer raised their price target from $47.00 to $55.00.
• Kyndryl reported earnings of $0.37 per share in its last quarter, exceeding the consensus estimate, but the company's revenue fell short of expectations, highlighting potential challenges ahead.

Kyndryl (NYSE:KD - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Monday,Zacks.com reports.

Other analysts also recently issued research reports about the stock. Wall Street Zen downgraded shares of Kyndryl from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 12th. Morgan Stanley initiated coverage on shares of Kyndryl in a research note on Friday, September 26th. They set an "equal weight" rating and a $30.00 price target for the company. Finally, Oppenheimer lifted their price target on shares of Kyndryl from $47.00 to $55.00 and gave the company an "outperform" rating in a research note on Tuesday, July 8th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $42.00.

Kyndryl Stock Down 0.2%

Shares of NYSE KD opened at $30.02 on Monday. The company has a debt-to-equity ratio of 2.24, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market cap of $6.94 billion, a P/E ratio of 24.81, a PEG ratio of 3.33 and a beta of 1.89. Kyndryl has a 1 year low of $22.26 and a 1 year high of $44.20. The firm has a 50-day simple moving average of $32.37 and a two-hundred day simple moving average of $35.12.

Kyndryl (NYSE:KD - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.01. Kyndryl had a net margin of 1.97% and a return on equity of 19.88%. The business had revenue of $3.74 billion during the quarter, compared to the consensus estimate of $3.83 billion. During the same quarter last year, the firm earned $0.13 earnings per share. The firm's quarterly revenue was up .1% compared to the same quarter last year. Kyndryl has set its FY 2026 guidance at EPS. Research analysts anticipate that Kyndryl will post 0.73 earnings per share for the current year.

Hedge Funds Weigh In On Kyndryl

A number of large investors have recently bought and sold shares of KD. GAMMA Investing LLC grew its holdings in Kyndryl by 6.2% in the second quarter. GAMMA Investing LLC now owns 4,590 shares of the company's stock worth $193,000 after purchasing an additional 268 shares during the last quarter. MAI Capital Management grew its holdings in Kyndryl by 12.7% in the first quarter. MAI Capital Management now owns 2,641 shares of the company's stock worth $83,000 after purchasing an additional 297 shares during the last quarter. Louisiana State Employees Retirement System grew its holdings in Kyndryl by 0.5% in the second quarter. Louisiana State Employees Retirement System now owns 65,500 shares of the company's stock worth $2,748,000 after purchasing an additional 300 shares during the last quarter. Intech Investment Management LLC grew its holdings in Kyndryl by 0.5% in the first quarter. Intech Investment Management LLC now owns 66,751 shares of the company's stock worth $2,096,000 after purchasing an additional 318 shares during the last quarter. Finally, Assetmark Inc. grew its holdings in Kyndryl by 75.3% in the second quarter. Assetmark Inc. now owns 775 shares of the company's stock worth $33,000 after purchasing an additional 333 shares during the last quarter. Institutional investors own 71.53% of the company's stock.

Kyndryl Company Profile

Kyndryl Holdings, Inc operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services.

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