Kyndryl (NYSE:KD) Raised to Hold at Zacks Research

Key Points

• Zacks Research upgraded Kyndryl from “strong sell” to “hold,” adding to a mixed analyst picture that still leaves the stock with an overall “Reduce” consensus.
• Other recent analyst actions have been cautious, including price-target cuts from Morgan Stanley and Scotiabank, while BMO Capital Markets started coverage with a market perform rating and a $15 target.
• Kyndryl’s latest earnings missed expectations, with $0.18 EPS versus $0.43 expected, even though revenue came in slightly above estimates at $3.77 billion.

Kyndryl (NYSE:KD - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

Several other research analysts also recently issued reports on KD. Weiss Ratings reissued a "sell (d+)" rating on shares of Kyndryl in a research report on Monday, June 15th. Morgan Stanley reduced their target price on shares of Kyndryl from $28.00 to $13.00 and set an "equal weight" rating for the company in a report on Tuesday, March 24th. Scotiabank decreased their target price on shares of Kyndryl from $16.50 to $15.00 and set a "sector perform" rating for the company in a research note on Friday, May 8th. Wall Street Zen lowered Kyndryl from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Finally, BMO Capital Markets started coverage on Kyndryl in a research report on Monday, April 20th. They issued a "market perform" rating and a $15.00 price target on the stock. Seven investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Kyndryl presently has a consensus rating of "Reduce" and an average target price of $16.67.

Kyndryl Price Performance

KD stock opened at $11.62 on Monday. The company has a market capitalization of $2.56 billion, a P/E ratio of 13.68 and a beta of 1.67. Kyndryl has a twelve month low of $10.10 and a twelve month high of $40.01. The business has a 50 day simple moving average of $11.80 and a 200-day simple moving average of $15.31. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 1.77.

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

Hedge Funds Weigh In On Kyndryl

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio grew its stake in Kyndryl by 0.5% during 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 in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of 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 in the last quarter. Geneos Wealth Management Inc. boosted its stake in shares of Kyndryl by 62.2% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,487 shares of the company's stock valued at $62,000 after buying an additional 570 shares during the last quarter. Equitable Holdings Inc. boosted its stake in shares of Kyndryl by 2.8% during the 3rd quarter. Equitable Holdings Inc. now owns 25,560 shares of the company's stock valued at $768,000 after buying an additional 698 shares during the last quarter. Finally, Handelsbanken Fonder AB grew its position in shares of Kyndryl by 1.2% during the fourth quarter. Handelsbanken Fonder AB now owns 58,600 shares of the company's stock worth $1,556,000 after buying an additional 700 shares in the last quarter. Institutional investors and hedge funds 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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