Kyndryl Target of Unusually Large Options Trading (NYSE:KD)

Key Points

• Kyndryl saw unusually heavy bearish options activity: Investors bought 15,426 put options, 737% above the average volume of 1,843.
• Kyndryl shares fell 10.7% to $13.12, while the company’s latest quarterly revenue declined 3.3% year over year to $3.62 billion. Earnings of $0.12 per share exceeded analyst expectations on an adjusted basis.
• Analyst sentiment remains cautious, with seven Hold ratings and two Sell ratings; the stock has an average “Reduce” rating and a $16.67 price target. Institutional investors own 71.53% of Kyndryl’s shares.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) saw some unusual options trading on Wednesday. Stock investors bought 15,426 put options on the stock. This is an increase of 737% compared to the average volume of 1,843 put options.

Kyndryl Trading Down 10.7%

NYSE KD traded down $1.57 on Wednesday, reaching $13.12. The stock had a trading volume of 2,232,066 shares, compared to its average volume of 4,643,582. The stock has a fifty day moving average price of $12.04 and a two-hundred day moving average price of $13.82. Kyndryl has a 12-month low of $10.10 and a 12-month high of $33.90. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 1.77. The firm has a market capitalization of $2.89 billion, a price-to-earnings ratio of 15.44 and a beta of 1.65.

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

Institutional Investors Weigh In On Kyndryl

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Versant Capital Management Inc raised its stake in Kyndryl by 104.1% during the 2nd quarter. Versant Capital Management Inc now owns 2,418 shares of the company's stock valued at $27,000 after acquiring an additional 1,233 shares during the last quarter. Western Wealth Management LLC acquired a new position in Kyndryl during the first quarter worth $29,000. Los Angeles Capital Management LLC acquired a new position in shares of Kyndryl during the 4th quarter worth $29,000. Quarry LP purchased a new stake in shares of Kyndryl in the fourth quarter valued at about $31,000. Finally, NBT Bank N A NY lifted its stake in Kyndryl by 3,220.0% in 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. 71.53% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

KD has been the subject of a number of research reports. Weiss Ratings reissued a "sell (d+)" rating on shares of Kyndryl in a research note on Monday, June 15th. BMO Capital Markets initiated coverage on shares of Kyndryl in a research note on Monday, April 20th. They issued a "market perform" rating and a $15.00 price target on the stock. Wall Street Zen cut Kyndryl from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Scotiabank cut their price objective on Kyndryl from $16.50 to $15.00 and set a "sector perform" rating for the company in a research note on Friday, May 8th. Finally, Susquehanna cut Kyndryl from a "positive" rating to a "neutral" rating and reduced their target price for the company from $16.00 to $13.00 in a report on Thursday, May 21st. Seven analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $16.67.

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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