Wall Street Zen Downgrades Kyndryl (NYSE:KD) to Hold

Key Points

• Wall Street Zen downgraded Kyndryl from “buy” to “hold,” adding to a generally cautious analyst tone around the stock. The current consensus rating is “Reduce,” with a consensus price target of $22.57.
• Kyndryl reported weaker-than-expected earnings for its latest quarter, posting EPS of $0.18 versus the $0.43 estimate. Revenue came in at $3.77 billion, slightly above forecasts, but still down 0.8% year over year.
• The stock has struggled in recent months, opening at $12.23 and trading well below its 200-day moving average of $20.32. Despite this, institutional ownership remains high at 71.53%.

Kyndryl (NYSE:KD - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

KD has been the subject of a number of other research reports. JPMorgan Chase & Co. lowered Kyndryl from an "overweight" rating to an "underweight" rating and set a $16.00 price objective for the company. in a research note on Monday, February 9th. BMO Capital Markets began coverage on Kyndryl in a research note on Monday, April 20th. They set a "market perform" rating and a $15.00 price objective for the company. Scotiabank lowered their price objective on Kyndryl from $16.50 to $15.00 and set a "sector perform" rating for the company in a research note on Friday. Morgan Stanley reduced their target price on Kyndryl from $28.00 to $13.00 and set an "equal weight" rating on the stock in a report on Tuesday, March 24th. Finally, Zacks Research downgraded Kyndryl from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 18th. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, Kyndryl currently has an average rating of "Reduce" and a consensus price target of $22.57.

Kyndryl Price Performance

Shares of NYSE KD opened at $12.23 on Friday. Kyndryl has a fifty-two week low of $10.10 and a fifty-two week high of $44.20. The business has a 50 day moving average price of $13.07 and a two-hundred day moving average price of $20.32. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 1.75. The firm has a market cap of $2.76 billion, a PE ratio of 14.39 and a beta of 1.72.

Kyndryl (NYSE:KD - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $0.18 earnings per share for the quarter, missing analysts' consensus estimates of $0.43 by ($0.25). Kyndryl had a net margin of 1.31% and a return on equity of 20.29%. The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.74 billion. During the same quarter last year, the business earned $0.52 EPS. Kyndryl's revenue for the quarter was down .8% compared to the same quarter last year. Sell-side analysts expect that Kyndryl will post 1.81 earnings per share for the current fiscal year.

Institutional Trading of Kyndryl

Several hedge funds have recently made changes to their positions in KD. Royal Bank of Canada lifted its holdings in shares of Kyndryl by 50.2% in the 1st quarter. Royal Bank of Canada now owns 148,178 shares of the company's stock worth $4,653,000 after purchasing an additional 49,504 shares during the last quarter. Integrated Wealth Concepts LLC lifted its holdings in shares of Kyndryl by 15.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 8,025 shares of the company's stock worth $252,000 after purchasing an additional 1,093 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Kyndryl by 1.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 733,068 shares of the company's stock worth $23,018,000 after purchasing an additional 11,177 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Kyndryl by 116.9% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,616 shares of the company's stock worth $110,000 after purchasing an additional 1,410 shares during the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of Kyndryl by 29.8% in the 2nd quarter. First Trust Advisors LP now owns 408,123 shares of the company's stock worth $17,125,000 after purchasing an additional 93,726 shares during the last quarter. Institutional investors own 71.53% of the company's stock.

Kyndryl Company Profile

Kyndryl NYSE: KD is a global managed infrastructure services provider formed in November 2021 through the spin-off of IBM's Managed Infrastructure Services business. The company designs, builds, manages and modernizes critical information technology systems for enterprises worldwide. Kyndryl's core offerings include cloud migration and management, network and edge computing solutions, digital workplace services and IT resiliency and security capabilities.

With a workforce of approximately 90,000 professionals and operations in more than 60 countries, Kyndryl serves clients across a broad range of industries, including financial services, telecommunications, healthcare, manufacturing and retail.

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