Kyndryl (NYSE:KD) Shares Gap Down – Here’s Why

Kyndryl Holdings, Inc. (NYSE:KD) shares 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 changing hands.

Analysts Set New Price Targets

KD has been the subject of several analyst reports. BMO Capital Markets began coverage on shares of Kyndryl in a research note on Monday, April 20th. They issued a “market perform” rating and a $15.00 target price for the company. Morgan Stanley decreased their price objective 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. Susquehanna downgraded Kyndryl from a “positive” rating to a “neutral” rating and lowered their target price for the company from $16.00 to $13.00 in a research note on Thursday, May 21st. Weiss Ratings reiterated a “sell (d+)” rating on shares of Kyndryl in a research note on Monday, June 15th. Finally, Wall Street Zen downgraded Kyndryl from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $22.14.

Kyndryl Stock Up 1.2%

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

Kyndryl (NYSE:KD) last issued 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). Kyndryl had a net margin of 1.31% and a return on equity of 20.43%. The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.74 billion. During the same quarter last year, the company posted $0.52 EPS. The business’s revenue for the quarter was down .8% compared to the same quarter last year. As a group, research analysts predict that Kyndryl Holdings, Inc. will post 1.54 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Royal Bank of Canada lifted its holdings in Kyndryl by 50.2% in the first quarter. Royal Bank of Canada now owns 148,178 shares of the company’s stock worth $4,653,000 after acquiring an additional 49,504 shares during the last quarter. Integrated Wealth Concepts LLC grew its holdings in shares of Kyndryl by 15.8% during the first quarter. Integrated Wealth Concepts LLC now owns 8,025 shares of the company’s stock valued at $252,000 after purchasing an additional 1,093 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Kyndryl by 1.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 733,068 shares of the company’s stock worth $23,018,000 after purchasing an additional 11,177 shares during the period. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Kyndryl by 116.9% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,616 shares of the company’s stock worth $110,000 after purchasing an additional 1,410 shares during the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of Kyndryl by 29.8% in the 2nd quarter. First Trust Advisors LP now owns 408,123 shares of the company’s stock worth $17,125,000 after purchasing an additional 93,726 shares during the last quarter. 71.53% of the stock is owned by institutional investors and hedge funds.

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.