Kyndryl (NYSE:KD) Shares Gap Up - What's Next?

Key Points

• Kyndryl shares jumped 5.7%, opening at $11.78 versus a prior close of $11.26 and recently trading near $11.96.
• Analyst sentiment remains cautious: seven analysts rate the stock a Hold and two rate it Sell, resulting in a consensus “Reduce” rating and an average price target of $16.50.
• Kyndryl’s latest quarter beat EPS expectations ($0.12 loss versus a projected $0.16 loss), but revenue declined 3.3% year over year to $3.62 billion; institutional investors own 71.53% of the stock.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) gapped up prior to trading on Thursday. The stock had previously closed at $11.26, but opened at $11.78. Kyndryl shares last traded at $11.9620, with a volume of 364,027 shares trading hands.

Analyst Ratings Changes

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

Kyndryl Stock Up 5.7%

The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 1.96. The stock's 50-day moving average is $12.90 and its 200-day moving average is $12.54. The company has a market cap of $2.59 billion, a price-to-earnings ratio of 31.99 and a beta of 1.64.

Kyndryl (NYSE:KD - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping 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 business 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 firm earned $0.37 earnings per share. Kyndryl's revenue was down 3.3% on a year-over-year basis. On average, analysts anticipate that Kyndryl Holdings, Inc. will post 1.36 earnings per share for the current fiscal year.

Institutional Trading of Kyndryl

Several large investors have recently made changes to their positions in the company. State Street Corp raised its stake in 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 buying an additional 492,925 shares during the period. Geode Capital Management LLC increased its holdings in shares of Kyndryl by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 4,456,962 shares of the company's stock valued at $118,997,000 after acquiring an additional 63,846 shares in the last quarter. Sound Shore Management Inc. CT increased its holdings in shares of Kyndryl by 39.5% during the first 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 in the last quarter. Cooper Creek Partners Management LLC raised its position in shares of Kyndryl by 498.5% during the first quarter. Cooper Creek Partners Management LLC now owns 3,895,949 shares of the company's stock worth $51,115,000 after purchasing an additional 3,245,013 shares during the period. Finally, Bank of America Corp DE raised its position in shares of Kyndryl by 12.8% during the first quarter. Bank of America Corp DE now owns 1,792,792 shares of the company's stock worth $23,521,000 after purchasing an additional 203,032 shares during the period. 71.53% of the stock is currently owned by institutional investors and hedge funds.

About Kyndryl

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 include managed infrastructure, cloud solutions, application management, network and edge services, cybersecurity, data and artificial intelligence, and technology consulting.

The company helps clients operate and transform complex IT environments, including hybrid cloud and traditional on-premises systems.

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