Kyndryl (NYSE:KD) Given Sector Perform Rating at Scotiabank

Key Points

• Scotiabank reaffirmed a "sector perform" rating on Kyndryl with a $16.50 price target, implying about a 22% upside from the current share price.
• Analyst coverage is mixed—one Buy, five Hold and three Sell—giving Kyndryl an average MarketBeat rating of "Reduce" and an average price target of $22.79.
• Kyndryl recently missed quarterly estimates (EPS $0.52 vs. $0.60 expected; revenue $3.86B vs. $3.89B) and trades around $13.53, well below its 200-day moving average of $21.27.

Kyndryl (NYSE:KD - Get Free Report)'s stock had its "sector perform" rating reaffirmed by Scotiabank in a note issued to investors on Friday,Benzinga reports. They currently have a $16.50 price objective on the stock. Scotiabank's target price suggests a potential upside of 22.00% from the company's current price.

Several other brokerages have also recently commented on KD. Weiss Ratings cut shares of Kyndryl from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, March 18th. Wall Street Zen upgraded shares of Kyndryl from a "hold" rating to a "buy" rating in a research report on Sunday, February 22nd. Guggenheim cut shares of Kyndryl from a "buy" rating to a "neutral" rating in a research report on Tuesday, February 10th. Susquehanna lowered their price objective on shares of Kyndryl from $35.00 to $16.00 and set a "positive" rating for the company in a research report on Friday, February 13th. Finally, Zacks Research cut shares of Kyndryl from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 18th. One investment analyst has rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Kyndryl has an average rating of "Reduce" and an average price target of $22.79.

Kyndryl Trading Up 0.8%

NYSE:KD traded up $0.11 during trading hours on Friday, hitting $13.53. 2,145,047 shares of the stock were exchanged, compared to its average volume of 4,860,554. The company's 50 day moving average is $12.89 and its two-hundred day moving average is $21.27. Kyndryl has a twelve month low of $10.10 and a twelve month high of $44.20. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 1.75. The company has a market capitalization of $3.05 billion, a P/E ratio of 12.88 and a beta of 1.83.

Kyndryl (NYSE:KD - Get Free Report) last posted its quarterly earnings data on Monday, February 9th. The company reported $0.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.08). The firm had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.89 billion. Kyndryl had a return on equity of 25.91% and a net margin of 1.65%.The firm's quarterly revenue was up .6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.51 EPS. On average, sell-side analysts anticipate that Kyndryl will post 1.29 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kyndryl

Several hedge funds have recently bought and sold shares of the company. Public Employees Retirement System of Ohio lifted its stake in Kyndryl by 0.5% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 77,612 shares of the company's stock valued at $2,331,000 after purchasing an additional 421 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in Kyndryl by 17.1% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 3,064 shares of the company's stock valued at $92,000 after purchasing an additional 448 shares during the last quarter. Crossmark Global Holdings Inc. lifted its stake in Kyndryl by 3.4% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 14,625 shares of the company's stock valued at $439,000 after purchasing an additional 487 shares during the last quarter. Hantz Financial Services Inc. lifted its stake in Kyndryl by 33.7% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,962 shares of the company's stock valued at $59,000 after purchasing an additional 495 shares during the last quarter. Finally, Geneos Wealth Management Inc. lifted its stake in Kyndryl by 62.2% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,487 shares of the company's stock valued at $62,000 after purchasing an additional 570 shares during the last quarter. 71.53% of the stock is currently owned by institutional investors and hedge funds.

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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