Kyndryl (NYSE:KD) Shares Gap Down – Time to Sell?

Kyndryl Holdings, Inc. (NYSE:KD)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $12.25, but opened at $11.88. Kyndryl shares last traded at $12.03, with a volume of 520,900 shares traded.

Analyst Ratings Changes

Several analysts recently commented on KD shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of Kyndryl in a research note on Monday, June 15th. Wall Street Zen lowered shares of Kyndryl from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Susquehanna cut shares of Kyndryl from a “positive” rating to a “neutral” rating and dropped their target price for the company from $16.00 to $13.00 in a report on Thursday, May 21st. Morgan Stanley reduced their price target on shares of Kyndryl from $28.00 to $13.00 and set an “equal weight” rating for the company in a research report on Tuesday, March 24th. Finally, BMO Capital Markets initiated coverage on Kyndryl in a research note on Monday, April 20th. They set a “market perform” rating and a $15.00 price target on the stock. Six research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Kyndryl has a consensus rating of “Reduce” and an average target price of $22.14.

Kyndryl Stock Up 1.2%

The firm has a market capitalization of $2.73 billion, a PE ratio of 14.56 and a beta of 1.67. The firm’s 50-day moving average is $12.04 and its 200 day moving average is $16.04. The company has a debt-to-equity ratio of 1.77, a quick ratio of 0.88 and a current ratio of 0.88.

Kyndryl (NYSE:KD) last announced its earnings results on Wednesday, May 6th. The company reported $0.18 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.25). The business had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.74 billion. Kyndryl had a return on equity of 20.43% and a net margin of 1.31%.The business’s revenue was down .8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.52 EPS. As a group, research analysts forecast that Kyndryl Holdings, Inc. will post 1.54 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kyndryl

A number of institutional investors have recently added to or reduced their stakes in KD. AQR Capital Management LLC raised its holdings in shares of Kyndryl by 386.2% in the 3rd quarter. AQR Capital Management LLC now owns 4,187,177 shares of the company’s stock worth $125,113,000 after purchasing an additional 3,326,025 shares during the period. Cooper Creek Partners Management LLC increased its position 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 purchasing an additional 3,245,013 shares in the last quarter. Sound Shore Management Inc. CT increased its position in Kyndryl by 39.5% during the 1st quarter. Sound Shore Management Inc. CT now owns 4,147,984 shares of the company’s stock worth $54,422,000 after purchasing an additional 1,173,761 shares in the last quarter. Norges Bank acquired a new position in Kyndryl during the fourth quarter valued at approximately $19,539,000. Finally, UBS Group AG grew its stake in Kyndryl by 50.0% during the third quarter. UBS Group AG now owns 2,028,338 shares of the company’s stock worth $60,911,000 after buying an additional 675,943 shares during the period. Hedge funds and other institutional investors own 71.53% of the company’s stock.

About Kyndryl

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.