Kyndryl (NYSE:KD) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research lowered shares of Kyndryl (NYSE:KD) from a hold rating to a strong sell rating in a report issued on Wednesday,Zacks.com reports.

Other equities research analysts have also issued reports about the company. Susquehanna cut their price objective on Kyndryl from $35.00 to $16.00 and set a “positive” rating on the stock in a research report on Friday, February 13th. JPMorgan Chase & Co. cut shares of Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 price target on the stock. in a report on Monday, February 9th. Oppenheimer reissued a “market perform” rating on shares of Kyndryl in a research report on Monday, February 9th. Wall Street Zen cut shares of Kyndryl from a “buy” rating to a “hold” rating in a research report on Saturday, February 14th. Finally, Scotiabank began coverage on shares of Kyndryl in a research note on Tuesday, January 27th. They set an “outperform” rating on the stock. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $29.00.

Kyndryl Trading Down 1.3%

Shares of KD stock traded down $0.17 during mid-day trading on Wednesday, reaching $12.63. The stock had a trading volume of 537,638 shares, compared to its average volume of 6,310,896. The firm has a market capitalization of $2.85 billion, a PE ratio of 12.09 and a beta of 1.84. The stock’s 50-day moving average price is $23.26 and its two-hundred day moving average price is $26.98. The company has a current ratio of 0.86, a quick ratio of 1.02 and a debt-to-equity ratio of 1.75. Kyndryl has a 52-week low of $10.10 and a 52-week high of $44.20.

Kyndryl (NYSE:KD) last posted its earnings results on Monday, February 9th. The company reported $0.52 earnings per share for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.08). Kyndryl had a return on equity of 25.91% and a net margin of 1.65%.The firm had revenue of $3.86 billion for the quarter, compared to analysts’ expectations of $3.89 billion. During the same quarter in the prior year, the company posted $0.51 earnings per share. The business’s revenue for the quarter was up .6% on a year-over-year basis. Equities analysts expect that Kyndryl will post 0.73 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Kyndryl news, SVP Vineet Khurana sold 6,641 shares of the firm’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $26.69, for a total transaction of $177,248.29. Following the completion of the transaction, the senior vice president owned 59,708 shares of the company’s stock, valued at approximately $1,593,606.52. This trade represents a 10.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of KD. Los Angeles Capital Management LLC bought a new stake in Kyndryl during the fourth quarter worth about $29,000. Quarry LP purchased a new position in shares of Kyndryl during the fourth quarter valued at approximately $31,000. Assetmark Inc. boosted its position in shares of Kyndryl by 75.3% in the 2nd quarter. Assetmark Inc. now owns 775 shares of the company’s stock worth $33,000 after purchasing an additional 333 shares in the last quarter. Smartleaf Asset Management LLC boosted its position in shares of Kyndryl by 192.0% in the 3rd quarter. Smartleaf Asset Management LLC now owns 1,171 shares of the company’s stock worth $35,000 after purchasing an additional 770 shares in the last quarter. Finally, NBT Bank N A NY grew its stake 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 worth $35,000 after buying an additional 1,288 shares during the last quarter. 71.53% of the stock is currently owned by institutional investors.

Trending Headlines about Kyndryl

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Kyndryl launched a Cyber Defense Operations Center in Bengaluru to unify network and security operations — a strategic move that can support service differentiation and cross‑sell opportunities in managed security/network services, though near‑term financial impact is limited. Read More.
• Neutral Sentiment: Multiple plaintiff firms and investor‑alerts note an April 13, 2026 deadline to seek lead‑plaintiff status — a procedural milestone that centralizes litigation activity but does not itself determine outcome or damages. Investors have until that date to join/lead suits. Read More.
• Negative Sentiment: A wave of class‑action filings and law‑firm notices allege securities fraud related to Kyndryl’s Feb. 9 disclosures (late filing, “tone at the top” internal control weaknesses, senior departures and an SEC document request). The suits reference the ~55% share decline around Feb. 9 and claim potential material misstatements/omissions — increasing legal risk, potential discovery costs and investor uncertainty. Read More.
• Negative Sentiment: Zacks Research moved KD to a “strong sell” (Zacks Rank #5), signaling deteriorating analyst sentiment that can prompt further selling pressure from model‑driven funds and cautious investors. Read More.

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.