Kyndryl (NYSE:KD) Shares Gap Up After Earnings Beat

Key Points

• Kyndryl beat quarterly earnings expectations, reporting adjusted EPS of $0.42 versus the $0.38 consensus and revenue of $3.65 billion versus $3.62 billion expected. Revenue was down 1.9% year over year.
• Shares jumped after the announcement, opening at $14.91 versus the prior close of $12.94 and later trading at $16.15.
• Analyst sentiment remained cautious: MarketBeat cited an average “Reduce” rating and a $16.50 average price target, with seven analysts rating the stock Hold and two rating it Sell.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $12.94, but opened at $14.91. Kyndryl shares last traded at $16.1520, with a volume of 2,042,650 shares.

The company reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.04. The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.62 billion. Kyndryl had a return on equity of 12.24% and a net margin of 0.58%. The company's revenue was down 1.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.38 earnings per share.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. Zacks Research upgraded Kyndryl from a "strong sell" rating to a "hold" rating in a research note on Monday, September 14th. JPMorgan Chase & Co. increased their price target on Kyndryl from $13.00 to $14.00 and gave the stock an "underweight" rating in a research report 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, Weiss Ratings lowered Kyndryl from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 6th. Seven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $16.50.

Institutional Trading of Kyndryl

Several institutional investors have recently modified their holdings of KD. State Street Corp raised its holdings in shares of Kyndryl by 6.8% during 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 during the period. Sound Shore Management Inc. CT boosted its position in shares of Kyndryl by 39.5% during the 1st quarter. Sound Shore Management Inc. CT now owns 4,147,984 shares of the company's stock valued at $54,422,000 after acquiring an additional 1,173,761 shares during the last quarter. Cooper Creek Partners Management LLC boosted its position in shares of Kyndryl by 498.5% during the 1st quarter. Cooper Creek Partners Management LLC now owns 3,895,949 shares of the company's stock valued at $51,115,000 after acquiring an additional 3,245,013 shares during the last quarter. Arnhold LLC grew its holdings in shares of Kyndryl by 6.1% in the third quarter. Arnhold LLC now owns 2,058,952 shares of the company's stock valued at $23,184,000 after purchasing an additional 118,880 shares during the period. Finally, Bank of America Corp DE grew its holdings in shares of Kyndryl by 12.8% in the first quarter. Bank of America Corp DE now owns 1,792,792 shares of the company's stock valued at $23,521,000 after purchasing an additional 203,032 shares during the period. Institutional investors and hedge funds own 71.53% of the company's stock.

Kyndryl Trading Up 28.1%

The stock has a market capitalization of $3.61 billion, a price-to-earnings ratio of 44.78 and a beta of 1.62. The company's 50-day moving average is $12.81 and its 200-day moving average is $13.50. The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 1.96.

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.

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.