Kyndryl (NYSE:KD) Shares Up 4.6% - Should You Buy?

Key Points

• Kyndryl shares rose 4.6% to about $12.32, although trading volume was approximately 97% below the average daily volume.
• Analyst sentiment remains cautious: seven analysts rate the stock Hold and two rate it Sell, resulting in an overall “Reduce” rating and a consensus price target of $16.50.
• In its latest quarter, Kyndryl reported an adjusted loss of $0.12 per share, beating estimates, while 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) shares traded up 4.6% on Tuesday. The stock traded as high as $12.24 and last traded at $12.3240. 143,054 shares traded hands during mid-day trading, a decline of 97% from the average daily volume of 4,486,613 shares. The stock had previously closed at $11.78.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Weiss Ratings downgraded Kyndryl from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 6th. Zacks Research raised Kyndryl from a "strong sell" rating to a "hold" rating in a report on Monday, September 14th. BMO Capital Markets reissued a "market perform" rating and issued a $16.00 price objective on shares of Kyndryl in a research note on Thursday, August 6th. Finally, JPMorgan Chase & Co. increased their target price on Kyndryl from $13.00 to $14.00 and gave the company an "underweight" rating in a research report on Monday, August 10th. 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 stock has an average rating of "Reduce" and a consensus price target of $16.50.

Kyndryl Stock Performance

The company has a 50-day moving average price of $12.67 and a two-hundred day moving average price of $12.50. 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 has a market capitalization of $2.66 billion, a P/E ratio of 32.96 and a beta of 1.66.

Kyndryl (NYSE:KD - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.04. Kyndryl had a return on equity of 12.24% and a net margin of 0.58%. The company had revenue of $3.62 billion for the quarter, compared to the consensus estimate of $3.64 billion. During the same period in the previous year, the business earned $0.37 EPS. The firm's revenue was down 3.3% compared to the same quarter last year. On average, equities analysts forecast that Kyndryl Holdings, Inc. will post 1.36 earnings per share for the current year.

Institutional Investors Weigh In On Kyndryl

A number of hedge funds have recently added to or reduced their stakes in the business. Benjamin Edwards Inc. lifted its holdings in shares of Kyndryl by 6.9% in the 2nd quarter. Benjamin Edwards Inc. now owns 14,179 shares of the company's stock worth $160,000 after purchasing an additional 921 shares in the last quarter. State of Michigan Retirement System grew its position in Kyndryl by 1.9% in the 1st quarter. State of Michigan Retirement System now owns 55,034 shares of the company's stock valued at $722,000 after purchasing an additional 1,000 shares during the period. IFP Advisors Inc increased its stake in Kyndryl by 44.8% during the 2nd quarter. IFP Advisors Inc now owns 3,256 shares of the company's stock valued at $37,000 after purchasing an additional 1,008 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in Kyndryl by 24.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 5,469 shares of the company's stock valued at $72,000 after purchasing an additional 1,073 shares in the last quarter. Finally, Versant Capital Management Inc raised its holdings in Kyndryl by 104.1% during the second quarter. Versant Capital Management Inc now owns 2,418 shares of the company's stock worth $27,000 after buying an additional 1,233 shares during the last quarter. 71.53% of the stock is currently owned by 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 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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