Morgan Stanley Issues Pessimistic Forecast for Kyndryl (NYSE:KD) Stock Price

Key Points

• Morgan Stanley cut its price target on Kyndryl from $28 to $13 and kept an "equal weight" rating, implying only about a 3.3% upside from the current share price.
• Multiple other brokers have downgraded Kyndryl, leaving a MarketBeat consensus of "Reduce" with an average price target near $25.60.
• Kyndryl shares traded around $12.59 (down ~2.8%); the company recently missed EPS and revenue estimates and faces expanding securities class‑action filings that raise settlement risk.

Kyndryl (NYSE:KD - Get Free Report) had its price target reduced by equities researchers at Morgan Stanley from $28.00 to $13.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price objective suggests a potential upside of 3.26% from the stock's current price.

A number of other equities research analysts have also issued reports on KD. Susquehanna lowered their target price on Kyndryl from $35.00 to $16.00 and set a "positive" rating for the company in a research note on Friday, February 13th. Zacks Research lowered Kyndryl from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 18th. Scotiabank assumed coverage on Kyndryl in a report on Tuesday, January 27th. They issued an "outperform" rating for the company. JPMorgan Chase & Co. downgraded shares of Kyndryl from an "overweight" rating to an "underweight" rating and set a $16.00 price objective for the company. in a research report on Monday, February 9th. Finally, Guggenheim lowered shares of Kyndryl from a "buy" rating to a "neutral" rating in a research note on Tuesday, February 10th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and an average price target of $25.60.

Kyndryl Stock Down 2.8%

Shares of NYSE:KD traded down $0.36 during midday trading on Tuesday, hitting $12.59. 310,413 shares of the company's stock traded hands, compared to its average volume of 5,351,151. The firm's fifty day moving average price is $16.96 and its two-hundred day moving average price is $24.08. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.86 and a current ratio of 0.86. Kyndryl has a twelve month low of $10.10 and a twelve month high of $44.20. The company has a market cap of $2.84 billion, a PE ratio of 12.00 and a beta of 1.93.

Kyndryl (NYSE:KD - Get Free Report) last announced its quarterly earnings results on Monday, February 9th. The company reported $0.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.08). The company had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.89 billion. Kyndryl had a net margin of 1.65% and a return on equity of 25.91%. The firm's revenue for the quarter was up .6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.51 earnings per share. On average, equities research analysts anticipate that Kyndryl will post 0.73 EPS for the current fiscal year.

Institutional Trading of Kyndryl

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its holdings in Kyndryl by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 28,331,302 shares of the company's stock valued at $752,479,000 after purchasing an additional 144,625 shares during the last quarter. AQR Capital Management LLC increased its holdings in Kyndryl by 53.9% during the 4th quarter. AQR Capital Management LLC now owns 6,443,037 shares of the company's stock worth $170,934,000 after purchasing an additional 2,255,860 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Kyndryl by 1.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,684,443 shares of the company's stock worth $124,420,000 after purchasing an additional 76,614 shares during the last quarter. Geode Capital Management LLC raised its position in shares of 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 purchasing an additional 63,846 shares in the last quarter. Finally, Sound Shore Management Inc. CT raised its position in shares of Kyndryl by 46.1% in the 4th quarter. Sound Shore Management Inc. CT now owns 2,974,223 shares of the company's stock valued at $78,995,000 after purchasing an additional 939,154 shares in the last quarter. 71.53% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Kyndryl

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: No affirmative corporate developments or positive catalysts were reported in these notices; the items are legal/procedural in nature and not company growth news.
• Neutral Sentiment: Multiple law firms (Gross, Holzer & Holzer, Faruqi & Faruqi, Rosen, Levi & Korsinsky, Portnoy, Schall and others) issued reminders to Kyndryl investors about the April 13, 2026 lead‑plaintiff deadline — procedural alerts that increase claim participation but do not themselves determine liability or damages. KD Shareholder Alert: April 13, 2026 Lead Plaintiff Deadline in Kyndryl Holdings, Inc. Securities Class Action Lawsuit -- The Gross Law Firm
• Negative Sentiment: Hagens Berman filed/announced an expanded securities complaint that broadens the class period to Aug. 1, 2024 and adds allegations concerning the company’s free cash flow reporting — an accounting/financial‑reporting allegation that could be material and increases settlement risk. KD INVESTOR ALERT: New Kyndryl (KD) Securities Class Action Complaint Expands Class Period to August 1, 2024– Hagens Berman
• Negative Sentiment: Additional firms (Bronstein, Rosen, Faruqi, Levi & Korsinsky, Schall, Howard G. & others) have publicized class actions or investigations alleging investor harm tied to the same class period; the volume of filings raises the likelihood of consolidated litigation and potential settlement pressure. Bronstein, Gewirtz & Grossman LLC Urges Kyndryl Holdings, Inc. Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Several notices encourage investors to seek lead‑plaintiff status — increased competition for lead counsel can drive litigation strategy and timelines; early leadership often shapes case scope and settlement dynamics. KD CLASS ACTION NOTICE: Faruqi & Faruqi, LLP Reminds Kyndryl (KD) Investors of Securities Class Action Deadline on April 13, 2026

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.