Kyndryl (NYSE:KD) Trading Down 5.3% - Here's What Happened

Key Points

• Kyndryl shares fell 5.3% to about $12.27 in midday trading, with volume significantly below the stock’s average daily level.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with seven Hold ratings and two Sell ratings, despite a $16.50 average price target.
• Kyndryl’s latest quarterly results beat adjusted EPS expectations ($0.12 loss versus $0.16 expected), but revenue declined 3.3% year over year to $3.62 billion.

Kyndryl Holdings, Inc. (NYSE:KD - Get Free Report) shares fell 5.3% during mid-day trading on Friday . The stock traded as low as $12.30 and last traded at $12.2650. Approximately 1,113,041 shares were traded during trading, a decline of 75% from the average daily volume of 4,483,506 shares. The stock had previously closed at $12.95.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. JPMorgan Chase & Co. upped their price target on shares of Kyndryl from $13.00 to $14.00 and gave the stock an "underweight" rating in a research report on Monday, August 10th. Susquehanna downgraded Kyndryl from a "positive" rating to a "neutral" rating and reduced their price objective for the company from $16.00 to $13.00 in a research note on Thursday, May 21st. BMO Capital Markets reaffirmed a "market perform" rating and set a $16.00 target price on shares of Kyndryl in a research note on Thursday, August 6th. Weiss Ratings lowered shares of Kyndryl from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 6th. Finally, Zacks Research upgraded shares of Kyndryl from a "strong sell" rating to a "hold" rating in a research report on Monday. Seven analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and an average target price of $16.50.

Kyndryl Stock Down 5.5%

The business has a 50-day moving average of $12.94 and a 200-day moving average of $12.62. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.85 and a current ratio of 0.85. The stock has a market capitalization of $2.67 billion, a price-to-earnings ratio of 33.09 and a beta of 1.64.

Kyndryl (NYSE:KD - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.12) earnings per share 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 analyst estimates of $3.64 billion. Kyndryl had a net margin of 0.58% and a return on equity of 12.24%. Kyndryl's revenue was down 3.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.37 earnings per share. On average, sell-side analysts expect that Kyndryl Holdings, Inc. will post 1.36 EPS for the current year.

Institutional Investors Weigh In On Kyndryl

Large investors have recently added to or reduced their stakes in the business. Geode Capital Management LLC increased its holdings in Kyndryl by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 4,456,962 shares of the company's stock worth $118,997,000 after purchasing an additional 63,846 shares during the period. Sound Shore Management Inc. CT lifted its stake in Kyndryl by 46.1% in the fourth quarter. Sound Shore Management Inc. CT now owns 2,974,223 shares of the company's stock worth $78,995,000 after acquiring an additional 939,154 shares during the last quarter. Cooper Creek Partners Management LLC grew its holdings in Kyndryl by 498.5% during the 1st quarter. Cooper Creek Partners Management LLC now owns 3,895,949 shares of the company's stock worth $51,115,000 after acquiring an additional 3,245,013 shares in the last quarter. Royce & Associates LP increased its position in shares of Kyndryl by 10.8% in the 4th quarter. Royce & Associates LP now owns 1,917,036 shares of the company's stock valued at $50,916,000 after purchasing an additional 186,620 shares during the last quarter. Finally, Arnhold LLC raised its holdings in shares of Kyndryl by 18.6% in the 4th quarter. Arnhold LLC now owns 1,198,424 shares of the company's stock valued at $31,830,000 after purchasing an additional 187,753 shares in the last quarter. 71.53% of the stock is 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 support hybrid cloud environments, enterprise data centers, networks, applications and digital workplaces.

The company provides consulting and implementation services, cloud infrastructure management, cybersecurity, network and edge services, mainframe and data-center operations, and data and artificial intelligence solutions.

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