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.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on KD. Weiss Ratings reissued a “sell (d+)” rating on shares of Kyndryl in a report on Monday, June 15th. BMO Capital Markets began coverage on Kyndryl in a research report on Monday, April 20th. They issued a “market perform” rating and a $15.00 target price for the company. Susquehanna lowered Kyndryl from a “positive” rating to a “neutral” rating and cut their price target for the company from $16.00 to $13.00 in a research note on Thursday, May 21st. Scotiabank reduced their price target on Kyndryl from $16.50 to $15.00 and set a “sector perform” rating on the stock in a report on Friday, May 8th. Finally, Wall Street Zen downgraded Kyndryl from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Six equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Kyndryl currently has an average rating of “Reduce” and an average price target of $16.67.

Kyndryl Price Performance

The firm has a market capitalization of $2.73 billion, a P/E ratio of 14.57 and a beta of 1.67. The company has a fifty day moving average of $11.99 and a 200 day moving average of $15.84. The company has a debt-to-equity ratio of 1.77, a current ratio of 0.88 and a quick ratio of 0.88.

Kyndryl (NYSE:KD) last issued its quarterly 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). Kyndryl had a return on equity of 20.43% and a net margin of 1.31%.The firm had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.74 billion. During the same quarter last year, the firm posted $0.52 EPS. The firm’s revenue for the quarter was down .8% on a year-over-year basis. Sell-side analysts predict that Kyndryl Holdings, Inc. will post 1.54 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in KD. AQR Capital Management LLC boosted its holdings in Kyndryl by 386.2% in the third quarter. AQR Capital Management LLC now owns 4,187,177 shares of the company’s stock worth $125,113,000 after acquiring an additional 3,326,025 shares in the last quarter. Cooper Creek Partners Management LLC increased its holdings in shares of Kyndryl by 498.5% during the first quarter. Cooper Creek Partners Management LLC now owns 3,895,949 shares of the company’s stock valued at $51,115,000 after acquiring an additional 3,245,013 shares in the last quarter. Sound Shore Management Inc. CT raised its position in shares of Kyndryl by 39.5% during the first 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 during the period. Norges Bank bought a new position in shares of Kyndryl in the 4th quarter worth $19,539,000. Finally, UBS Group AG lifted its holdings in shares of Kyndryl by 50.0% in the 3rd quarter. UBS Group AG now owns 2,028,338 shares of the company’s stock worth $60,911,000 after purchasing an additional 675,943 shares in 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.