Kyndryl (NYSE:KD) Trading Down 9.3% - Here's What Happened

Key Points

• Kyndryl shares fell 9.3% to $13.32, reaching an intraday low of $12.85, with trading volume well below the stock’s average.
• Analyst sentiment remains cautious: seven analysts rate the stock “Hold” and two rate it “Sell,” producing an average rating of “Reduce” and an average price target of $16.67.
• In its latest quarterly results, Kyndryl reported an adjusted loss of $0.12 per share, beating estimates, while revenue of $3.62 billion slightly missed forecasts and declined 3.3% year over year.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report)'s stock price traded down 9.3% during trading on Wednesday . The stock traded as low as $12.85 and last traded at $13.32. 1,045,162 shares were traded during mid-day trading, a decline of 77% from the average session volume of 4,634,747 shares. The stock had previously closed at $14.69.

Analysts Set New Price Targets

Several brokerages have weighed in on KD. Zacks Research raised Kyndryl from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Wall Street Zen cut Kyndryl from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Weiss Ratings restated a "sell (d+)" rating on shares of Kyndryl in a research note on Monday, June 15th. BMO Capital Markets assumed coverage on Kyndryl in a report on Monday, April 20th. They set a "market perform" rating and a $15.00 target price on the stock. Finally, Scotiabank reduced their price target on Kyndryl from $16.50 to $15.00 and set a "sector perform" rating for the company in a research report on Friday, May 8th. Seven research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Kyndryl has an average rating of "Reduce" and an average target price of $16.67.

Kyndryl Price Performance

The stock's fifty day moving average is $12.04 and its 200-day moving average is $13.82. The stock has a market capitalization of $3.15 billion, a PE ratio of 16.84 and a beta of 1.65. The company has a debt-to-equity ratio of 1.77, a current ratio of 0.88 and a quick ratio of 0.88.

Kyndryl (NYSE:KD - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.12) EPS for the quarter, beating the consensus estimate of ($0.16) by $0.04. The company had revenue of $3.62 billion for the quarter, compared to analyst estimates of $3.64 billion. Kyndryl had a net margin of 1.31% and a return on equity of 20.43%. The firm's revenue was down 3.3% on a year-over-year basis. During the same quarter last year, the business earned $0.37 earnings per share. As a group, equities analysts predict that Kyndryl Holdings, Inc. will post 1.54 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Kyndryl

Several institutional investors and hedge funds have recently modified their holdings of KD. Versant Capital Management Inc boosted its position in Kyndryl by 104.1% during the second quarter. Versant Capital Management Inc now owns 2,418 shares of the company's stock worth $27,000 after purchasing an additional 1,233 shares in the last quarter. Western Wealth Management LLC acquired a new position in shares of Kyndryl during the 1st quarter worth approximately $29,000. Los Angeles Capital Management LLC acquired a new position in shares of Kyndryl during the 4th quarter worth approximately $29,000. Quarry LP purchased a new position in shares of Kyndryl during the 4th quarter valued at approximately $31,000. Finally, NBT Bank N A NY lifted its position in shares of Kyndryl by 3,220.0% during the 4th quarter. NBT Bank N A NY now owns 1,328 shares of the company's stock valued at $35,000 after buying an additional 1,288 shares in 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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