Kyndryl (NYSE:KD) Shares Gap Down - Here's Why

Key Points

• Kyndryl Holdings, Inc. (NYSE:KD) shares experienced a significant gap down, opening at $31.75 after closing at $36.70, and last traded at $29.86 with a trading volume of 1,790,350 shares.
• Several analysts have revised their price targets for Kyndryl, with Susquehanna lowering it from $46.00 to $43.00 while Oppenheimer raised it from $47.00 to $55.00, reflecting varied outlooks on the stock.
• Kyndryl reported quarterly earnings of $0.37 earnings per share (EPS), slightly exceeding expectations, but revenue of $3.74 billion fell short of the consensus estimate of $3.83 billion.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $36.70, but opened at $31.75. Kyndryl shares last traded at $29.86, with a volume of 1,790,350 shares.

Wall Street Analyst Weigh In

KD has been the subject of several research reports. Susquehanna dropped their price objective on shares of Kyndryl from $46.00 to $43.00 and set a "positive" rating for the company in a research note on Wednesday, April 23rd. Oppenheimer increased their price target on Kyndryl from $47.00 to $55.00 and gave the company an "outperform" rating in a research note on Tuesday, July 8th. Finally, Wall Street Zen downgraded Kyndryl from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 12th.

Kyndryl Price Performance

The company has a debt-to-equity ratio of 2.24, a quick ratio of 1.07 and a current ratio of 1.05. The business has a 50 day simple moving average of $39.29 and a 200-day simple moving average of $36.99. The firm has a market cap of $7.10 billion, a price-to-earnings ratio of 25.38, a P/E/G ratio of 3.34 and a beta of 1.91.

Kyndryl (NYSE:KD - Get Free Report) last released its quarterly earnings results on Monday, August 4th. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.36 by $0.01. The business had revenue of $3.74 billion for the quarter, compared to analysts' expectations of $3.83 billion. Kyndryl had a net margin of 1.97% and a return on equity of 19.88%. The firm's revenue for the quarter was up .1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.13 earnings per share. Equities research analysts expect that Kyndryl Holdings, Inc. will post 0.73 earnings per share for the current year.

Insider Buying and Selling

In other news, SVP Vineet Khurana sold 26,451 shares of the stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $39.14, for a total transaction of $1,035,292.14. Following the completion of the transaction, the senior vice president directly owned 73,278 shares of the company's stock, valued at $2,868,100.92. This represents a 26.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 1.90% of the company's stock.

Hedge Funds Weigh In On Kyndryl

Institutional investors have recently bought and sold shares of the company. Deutsche Bank AG grew its position in shares of Kyndryl by 95.9% during the 4th quarter. Deutsche Bank AG now owns 2,147,009 shares of the company's stock valued at $74,287,000 after purchasing an additional 1,050,856 shares in the last quarter. Nuveen LLC bought a new stake in Kyndryl during the first quarter valued at $30,466,000. D. E. Shaw & Co. Inc. grew its position in Kyndryl by 180.3% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 1,331,851 shares of the company's stock worth $46,082,000 after buying an additional 856,629 shares in the last quarter. Maple Rock Capital Partners Inc. purchased a new position in Kyndryl during the fourth quarter worth about $26,085,000. Finally, GMT Capital Corp increased its stake in Kyndryl by 24.2% in the 1st quarter. GMT Capital Corp now owns 3,691,860 shares of the company's stock worth $115,924,000 after acquiring an additional 718,300 shares during the last quarter. Hedge funds and other institutional investors own 71.53% of the company's stock.

About Kyndryl

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.