Kyndryl (NYSE:KD) Shares Break Below 200-Day Moving Average - Time to Sell?

Key Points

• Kyndryl shares fell below their 200-day moving average of $13.58, trading as low as $13.48 before last changing hands at $13.5610.
• Analyst sentiment remains cautious: seven analysts rate the stock Hold and two rate it Sell, resulting in a consensus “Reduce” rating and a $16.50 price target.
• Kyndryl’s latest quarter beat EPS expectations, but revenue fell 3.3% year over year to $3.62 billion; institutional investors own approximately 71.53% of the stock.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $13.58 and traded as low as $13.48. Kyndryl shares last traded at $13.5610, with a volume of 3,491,471 shares.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on KD. Weiss Ratings lowered Kyndryl from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 6th. JPMorgan Chase & Co. lifted their target price on Kyndryl from $13.00 to $14.00 and gave the company an "underweight" rating in a research note on Monday, August 10th. BMO Capital Markets reiterated a "market perform" rating and set a $16.00 price target on shares of Kyndryl in a research report on Thursday, August 6th. Finally, Zacks Research raised Kyndryl from a "strong sell" rating to a "hold" rating in a research note on Monday, September 14th. Seven equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Kyndryl has a consensus rating of "Reduce" and a consensus price target of $16.50.

Kyndryl Stock Performance

The firm has a market capitalization of $2.95 billion, a PE ratio of 36.65 and a beta of 1.66. The company has a debt-to-equity ratio of 1.96, a current ratio of 0.85 and a quick ratio of 0.85. The firm has a fifty day moving average price of $12.81 and a 200 day moving average price of $13.58.

Kyndryl (NYSE:KD - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.12) EPS for the quarter, topping the consensus estimate of ($0.16) by $0.04. The company had revenue of $3.62 billion during the quarter, compared to analysts' expectations of $3.64 billion. Kyndryl had a net margin of 0.58% and a return on equity of 12.24%. The business's revenue for the quarter was down 3.3% on a year-over-year basis. During the same period last year, the company posted $0.37 earnings per share. Research analysts anticipate that Kyndryl Holdings, Inc. will post 1.36 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Kyndryl

Several institutional investors and hedge funds have recently added to or reduced their stakes in KD. Amundi grew its holdings in shares of Kyndryl by 145.5% during the second quarter. Amundi now owns 708,203 shares of the company's stock valued at $8,010,000 after buying an additional 419,708 shares in the last quarter. Hara Capital LLC purchased a new stake in Kyndryl in the 2nd quarter worth about $1,011,000. State Street Corp lifted its stake in Kyndryl by 6.8% in the 2nd quarter. State Street Corp now owns 7,792,865 shares of the company's stock worth $88,137,000 after acquiring an additional 492,925 shares in the last quarter. Waterfront Wealth Inc. purchased a new stake in Kyndryl in the 1st quarter worth about $2,740,000. Finally, Corient Private Wealth LP boosted its position in Kyndryl by 768.6% during the 2nd quarter. Corient Private Wealth LP now owns 96,657 shares of the company's stock worth $1,093,000 after acquiring an additional 85,529 shares during the period. 71.53% of the stock is currently owned by hedge funds and other institutional investors.

Kyndryl Company Profile

Kyndryl Holdings, Inc NYSE: KD is an information technology services company that designs, builds, manages and modernizes mission-critical technology systems for businesses and public-sector organizations. Its services help customers operate and transform complex IT environments, including cloud, data centers, networks, applications and digital workplaces.

The company provides consulting and implementation services as well as ongoing managed services. Its capabilities include cloud solutions, network and edge services, cybersecurity, data and artificial intelligence, application management, enterprise computing and technology modernization.

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