Kyndryl (NYSE:KD) Shares Down 9.3% – Here’s What Happened

Kyndryl Holdings, Inc. (NYSE:KD)’s share price dropped 9.3% on Wednesday . The company traded as low as $12.85 and last traded at $13.32. 1,045,162 shares changed hands during trading, a decline of 77% from the average daily volume of 4,634,747 shares. The stock had previously closed at $14.69.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Susquehanna lowered Kyndryl from a “positive” rating to a “neutral” rating and decreased their target price for the company from $16.00 to $13.00 in a report on Thursday, May 21st. Wall Street Zen cut Kyndryl from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Weiss Ratings restated a “sell (d+)” rating on shares of Kyndryl in a report on Monday, June 15th. Scotiabank reduced their price target on Kyndryl from $16.50 to $15.00 and set a “sector perform” rating on the stock in a research report on Friday, May 8th. Finally, Zacks Research upgraded Kyndryl from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Seven investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $16.83.

Kyndryl Stock Performance

The stock’s 50-day simple moving average is $12.13 and its 200 day simple moving average is $13.65. The company has a market capitalization of $3.05 billion, a PE ratio of 37.50 and a beta of 1.65. 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 released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.04. The business had revenue of $3.62 billion during the quarter, compared to analysts’ expectations of $3.64 billion. Kyndryl had a net margin of 0.58% and a return on equity of 11.90%. The company’s revenue for the quarter was down 3.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.37 EPS. As a group, research analysts expect that Kyndryl Holdings, Inc. will post 1.54 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in KD. Versant Capital Management Inc increased its stake in Kyndryl by 104.1% in the second quarter. Versant Capital Management Inc now owns 2,418 shares of the company’s stock valued at $27,000 after purchasing an additional 1,233 shares during the last quarter. Western Wealth Management LLC purchased a new stake in shares of Kyndryl during the 1st quarter worth approximately $29,000. Los Angeles Capital Management LLC acquired a new position in shares of Kyndryl in the 4th quarter valued at $29,000. Quarry LP acquired a new position in shares of Kyndryl in the 4th quarter valued at $31,000. Finally, NBT Bank N A NY grew its position in shares of Kyndryl by 3,220.0% in the 4th quarter. NBT Bank N A NY now owns 1,328 shares of the company’s stock valued at $35,000 after buying an additional 1,288 shares during the last quarter. 71.53% of the stock is owned by institutional investors and hedge funds.

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.