Kyndryl (NYSE:KD) Stock Rating Lowered by Zacks Research

Kyndryl (NYSE:KD) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Wednesday,Zacks.com reports.

A number of other equities research analysts have also recently commented on the stock. Susquehanna decreased their target price on shares of Kyndryl from $35.00 to $16.00 and set a “positive” rating on the stock in a research note on Friday, February 13th. Scotiabank began coverage on shares of Kyndryl in a research report on Tuesday, January 27th. They set an “outperform” rating on the stock. Guggenheim cut shares of Kyndryl from a “buy” rating to a “neutral” rating in a research note on Tuesday, February 10th. Oppenheimer reiterated a “market perform” rating on shares of Kyndryl in a research note on Monday, February 9th. Finally, Wall Street Zen cut Kyndryl from a “buy” rating to a “hold” rating in a report on Saturday, February 14th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $29.00.

Kyndryl Stock Performance

Kyndryl stock traded down $0.17 during trading on Wednesday, reaching $12.62. The company had a trading volume of 744,709 shares, compared to its average volume of 6,324,926. The firm has a market capitalization of $2.85 billion, a price-to-earnings ratio of 12.02 and a beta of 1.84. The company has a current ratio of 0.86, a quick ratio of 1.02 and a debt-to-equity ratio of 1.75. The firm’s 50-day simple moving average is $23.26 and its 200 day simple moving average is $26.98. Kyndryl has a 52 week low of $10.10 and a 52 week high of $44.20.

Kyndryl (NYSE:KD) last issued its quarterly earnings results on Monday, February 9th. The company reported $0.52 EPS 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 company had revenue of $3.86 billion during the quarter, compared to analysts’ expectations of $3.89 billion. During the same quarter in the previous year, the company earned $0.51 EPS. The business’s quarterly revenue was up .6% compared to the same quarter last year. Sell-side analysts forecast that Kyndryl will post 0.73 earnings per share for the current fiscal year.

Insider Activity

In other news, SVP Vineet Khurana sold 6,641 shares of the company’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $26.69, for a total value of $177,248.29. Following the transaction, the senior vice president directly owned 59,708 shares in the company, valued at approximately $1,593,606.52. This represents a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Kyndryl

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in shares of Kyndryl by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 28,331,302 shares of the company’s stock valued at $752,479,000 after buying an additional 144,625 shares during the period. AQR Capital Management LLC lifted its stake in Kyndryl by 53.9% in the fourth quarter. AQR Capital Management LLC now owns 6,443,037 shares of the company’s stock worth $170,934,000 after acquiring an additional 2,255,860 shares during the period. Dimensional Fund Advisors LP grew its holdings in Kyndryl by 1.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,684,443 shares of the company’s stock worth $124,420,000 after acquiring an additional 76,614 shares in the last quarter. Geode Capital Management LLC increased its position in Kyndryl by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 4,456,962 shares of the company’s stock valued at $118,997,000 after purchasing an additional 63,846 shares during the period. Finally, Sound Shore Management Inc. CT increased its position in Kyndryl by 46.1% during the 4th quarter. Sound Shore Management Inc. CT now owns 2,974,223 shares of the company’s stock valued at $78,995,000 after purchasing an additional 939,154 shares during the period. 71.53% of the stock is owned by institutional investors.

Kyndryl News Summary

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.

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.