Kyndryl (NYSE:KD) Trading Up 4.9% - Time to Buy?

Key Points

• Kyndryl shares rose 4.9% to about $13.17 in mid-day trading, although volume was 86% below the average session level.
• Analyst sentiment remains cautious: MarketBeat reports an average “Reduce” rating, including six Holds and three Sells, with a consensus price target of $16.50.
• Kyndryl’s latest quarterly results beat EPS expectations ($0.12 loss versus a projected $0.16 loss), but revenue declined 3.3% year over year to $3.62 billion.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) rose 4.9% during mid-day trading on Monday . The stock traded as high as $13.31 and last traded at $13.1650. Approximately 660,094 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 4,617,190 shares. The stock had previously closed at $12.55.

Wall Street Analyst Weigh In

KD has been the subject of several analyst reports. JPMorgan Chase & Co. increased their price objective on Kyndryl from $13.00 to $14.00 and gave the company an "underweight" rating in a report on Monday, August 10th. BMO Capital Markets reaffirmed a "market perform" rating and set a $16.00 target price on shares of Kyndryl in a research report on Thursday, August 6th. Weiss Ratings downgraded Kyndryl from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 6th. Wall Street Zen lowered Kyndryl from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Finally, Zacks Research downgraded shares of Kyndryl from a "hold" rating to a "strong sell" rating in a report on Friday, August 14th. Six analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, Kyndryl has an average rating of "Reduce" and a consensus target price of $16.50.

Kyndryl Stock Performance

The stock has a market capitalization of $2.83 billion, a PE ratio of 35.22 and a beta of 1.64. The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 1.96. The firm has a 50 day moving average price of $12.37 and a 200-day moving average price of $12.79.

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. Kyndryl had a net margin of 0.58% and a return on equity of 12.24%. The firm had revenue of $3.62 billion for the quarter, compared to analyst estimates of $3.64 billion. During the same quarter in the previous year, the company earned $0.37 EPS. The business's revenue for the quarter was down 3.3% compared to the same quarter last year. Research analysts expect that Kyndryl Holdings, Inc. will post 1.36 EPS for the current fiscal year.

Institutional Investors Weigh In On Kyndryl

Several institutional investors and hedge funds have recently modified their holdings of the company. Public Employees Retirement System of Ohio grew its holdings in shares of 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 buying an additional 421 shares during the period. Northwestern Mutual Wealth Management Co. lifted its holdings in Kyndryl by 17.1% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 3,064 shares of the company's stock worth $92,000 after acquiring an additional 448 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in Kyndryl by 62.2% during the second quarter. Geneos Wealth Management Inc. now owns 1,487 shares of the company's stock worth $62,000 after acquiring an additional 570 shares in the last quarter. Equitable Holdings Inc. grew its stake in Kyndryl by 2.8% in the third quarter. Equitable Holdings Inc. now owns 25,560 shares of the company's stock valued at $768,000 after acquiring an additional 698 shares during the period. Finally, Handelsbanken Fonder AB increased its holdings in shares of Kyndryl by 1.2% in the fourth quarter. Handelsbanken Fonder AB now owns 58,600 shares of the company's stock worth $1,556,000 after acquiring an additional 700 shares in the last quarter. Hedge funds and other institutional investors own 71.53% of the company's stock.

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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