Kyndryl (NYSE:KD) Downgraded by Wall Street Zen to Hold

Wall Street Zen downgraded shares of Kyndryl (NYSE:KD) from a buy rating to a hold rating in a research note released on Saturday.

Other equities analysts have also issued reports about the stock. JPMorgan Chase & Co. lowered shares of Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 target price for the company. in a research note on Monday, February 9th. Zacks Research raised Kyndryl from a “strong sell” rating to a “hold” rating in a research report on Wednesday, November 12th. Guggenheim downgraded Kyndryl from a “buy” rating to a “neutral” rating in a report on Tuesday. Susquehanna dropped their target price on Kyndryl from $35.00 to $16.00 and set a “positive” rating on the stock in a research report on Friday. Finally, Oppenheimer reaffirmed a “market perform” rating on shares of Kyndryl in a research report on Monday, February 9th. Two investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $29.00.

Kyndryl Price Performance

Shares of KD opened at $12.24 on Friday. The stock has a 50 day simple moving average of $24.37 and a 200 day simple moving average of $27.59. Kyndryl has a 52-week low of $10.10 and a 52-week high of $44.20. The company has a debt-to-equity ratio of 2.24, a quick ratio of 1.02 and a current ratio of 1.02. The firm has a market capitalization of $2.80 billion, a PE ratio of 11.66 and a beta of 1.84.

Kyndryl (NYSE:KD) last announced its quarterly 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 net margin of 1.65% and a return on equity of 25.77%. The company had revenue of $3.86 billion during the quarter, compared to the consensus estimate of $3.89 billion. During the same period in the previous year, the firm posted $0.51 EPS. The business’s quarterly revenue was up .6% compared to the same quarter last year. Sell-side analysts predict that Kyndryl will post 0.73 EPS 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 that occurred on Friday, December 5th. The stock was sold at an average price of $26.69, for a total value of $177,248.29. Following the completion of the transaction, the senior vice president directly owned 59,708 shares in the company, valued at $1,593,606.52. This trade represents a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Kyndryl

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Assetmark Inc. raised its position in Kyndryl by 75.3% during the second quarter. Assetmark Inc. now owns 775 shares of the company’s stock worth $33,000 after acquiring an additional 333 shares in the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of Kyndryl during the 4th quarter worth about $29,000. Employees Retirement System of Texas bought a new stake in shares of Kyndryl in the 2nd quarter valued at about $49,000. Smartleaf Asset Management LLC lifted its stake in Kyndryl by 192.0% in the 3rd quarter. Smartleaf Asset Management LLC now owns 1,171 shares of the company’s stock valued at $35,000 after purchasing an additional 770 shares during the last quarter. Finally, Quarry LP bought a new position in Kyndryl during the fourth quarter worth about $31,000. 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 won a material client deal to modernize Yamaguchi Financial Group’s core banking into a shared, multi‑bank platform — a revenue‑supporting contract in Japan. Yamaguchi Financial Group deal
• Positive Sentiment: Kyndryl launched Kyndryl Intelligent Recovery Service (KIRS), an AI‑integrated, cloud‑based cyber‑recovery offering that can drive sales in security/resilience projects. KIRS launch
• Neutral Sentiment: Market commentary notes unusual options activity and continued deal execution risks (deal slippages mentioned alongside an extended Hertz engagement) — these items can add volatility but are not definitive drivers by themselves. Unusually large options trading Hertz partnership update
• Negative Sentiment: A flurry of securities‑fraud class action filings and solicitor notices from multiple law firms allege investor harm covering the period Aug 7, 2024–Feb 9, 2026; firms are soliciting lead‑plaintiff applications (deadline Apr 13, 2026), increasing legal exposure and potential settlement risk. Robbins LLP class action alert
• Negative Sentiment: Independent investigations by multiple plaintiff firms (Schall, Kessler Topaz, Rosen, BFA and others) are probing potential misstatements about cash management and internal controls — these probes usually precede formal litigation and can drive regulatory scrutiny and remediation costs. Kessler Topaz investor alert
• Negative Sentiment: Regulatory and disclosure shock: filings allege the stock plunged after Kyndryl disclosed it would not timely file its quarterly report, cited material internal control weaknesses (“tone at the top”), senior exec departures and an SEC document request — factors that materially increase execution and regulatory risk. Hagens Berman summary of disclosures
• Negative Sentiment: Separate firm commentary highlights that Kyndryl’s shift from adjusted to reported free‑cash‑flow and an internal accounting review preceded the investigation into cash management — a detail central to many plaintiffs’ allegations. Accounting review / cash management note

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.