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

Shares of Kyndryl Holdings, Inc. (NYSE:KD) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. 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 changing hands.

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

Analysts Set New Price Targets

Several brokerages recently weighed in on KD. JPMorgan Chase & Co. increased their price objective 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 restated a “market perform” rating and issued a $16.00 target price on shares of Kyndryl in a research report on Thursday, August 6th. Weiss Ratings lowered Kyndryl from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, August 6th. Finally, Zacks Research upgraded Kyndryl from a “strong sell” rating to a “hold” rating in a report on Monday, September 14th. Seven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $16.50.

Institutional Investors Weigh In On Kyndryl

Institutional investors have recently modified their holdings of the company. Amundi lifted its stake in Kyndryl by 145.5% during the 2nd quarter. Amundi now owns 708,203 shares of the company’s stock worth $8,010,000 after acquiring an additional 419,708 shares in the last quarter. Hara Capital LLC acquired a new position in Kyndryl in the 2nd quarter valued at about $1,011,000. State Street Corp grew its position in Kyndryl by 6.8% in the 2nd quarter. State Street Corp now owns 7,792,865 shares of the company’s stock valued at $88,137,000 after acquiring an additional 492,925 shares in the last quarter. Waterfront Wealth Inc. purchased a new stake in Kyndryl during the first quarter worth about $2,740,000. Finally, Corient Private Wealth LP increased its stake in Kyndryl by 768.6% during the second quarter. Corient Private Wealth LP now owns 96,657 shares of the company’s stock worth $1,093,000 after purchasing an additional 85,529 shares during the period. 71.53% of the stock is owned by institutional investors and hedge funds.

Kyndryl Price Performance

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

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 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.