Kyndryl (NYSE:KD) Stock Price Down 4.3% - What's Next?

Key Points

• Kyndryl shares fell 4.3% to about $12.78, with trading volume roughly 96% below the average session volume.
• Analyst sentiment remains cautious: seven analysts rate the stock Hold and two rate it Sell, producing an average “Reduce” rating and a $16.50 price target.
• Kyndryl’s latest quarter showed an EPS loss of $0.12, better than estimates, but revenue declined 3.3% year over year to $3.62 billion. Institutional investors own approximately 71.5% of the company.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) shares were down 4.3% on Wednesday . The stock traded as low as $12.90 and last traded at $12.7830. Approximately 203,116 shares traded hands during trading, a decline of 96% from the average session volume of 4,642,287 shares. The stock had previously closed at $13.36.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on KD shares. Zacks Research upgraded shares of Kyndryl from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Scotiabank lowered their price target on Kyndryl from $16.50 to $15.00 and set a "sector perform" rating on the stock in a report on Friday, May 8th. JPMorgan Chase & Co. raised their price objective on Kyndryl from $13.00 to $14.00 and gave the company an "underweight" rating in a research note on Monday. Wall Street Zen cut Kyndryl from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Finally, Susquehanna downgraded Kyndryl from a "positive" rating to a "neutral" rating and decreased their target price for the stock from $16.00 to $13.00 in a research report on Thursday, May 21st. Seven equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Kyndryl currently has an average rating of "Reduce" and an average price target of $16.50.

Kyndryl Stock Performance

The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 1.96. The stock's 50 day moving average is $12.19 and its 200 day moving average is $13.41. The stock has a market capitalization of $2.81 billion, a price-to-earnings ratio of 34.81 and a beta of 1.65.

Kyndryl (NYSE:KD - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.16) by $0.04. Kyndryl had a net margin of 0.58% and a return on equity of 12.24%. The company had revenue of $3.62 billion for the quarter, compared to the consensus estimate of $3.64 billion. During the same quarter in the prior year, the firm earned $0.37 earnings per share. The company's revenue for the quarter was down 3.3% compared to the same quarter last year. On average, analysts predict that Kyndryl Holdings, Inc. will post 1.54 earnings per share for the current year.

Hedge Funds Weigh In On Kyndryl

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in shares of Kyndryl by 0.5% during the fourth 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. Waterfront Wealth Inc. purchased a new stake in Kyndryl in the 1st quarter worth approximately $2,740,000. Hsbc Holdings PLC grew its stake in Kyndryl by 421.2% in the 4th quarter. Hsbc Holdings PLC now owns 248,130 shares of the company's stock worth $6,558,000 after acquiring an additional 200,522 shares during the period. Geode Capital Management LLC raised its holdings in Kyndryl by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 4,456,962 shares of the company's stock valued at $118,997,000 after acquiring an additional 63,846 shares during the last quarter. Finally, Sound Shore Management Inc. CT raised its holdings in Kyndryl by 39.5% in the 1st quarter. Sound Shore Management Inc. CT now owns 4,147,984 shares of the company's stock valued at $54,422,000 after acquiring an additional 1,173,761 shares during the last quarter. Hedge funds and other institutional investors 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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