Kyndryl (NYSE:KD) Cut to “Underweight” at JPMorgan Chase & Co.

Kyndryl (NYSE:KD) was downgraded by research analysts at JPMorgan Chase & Co. from an “overweight” rating to an “underweight” rating in a research report issued to clients and investors on Monday. They presently have a $16.00 price objective on the stock. JPMorgan Chase & Co.‘s price target indicates a potential upside of 45.53% from the company’s current price.

KD has been the subject of several other research reports. Scotiabank began coverage on Kyndryl in a research report on Tuesday, January 27th. They issued an “outperform” rating for the company. Susquehanna set a $35.00 price objective on shares of Kyndryl in a report on Thursday, November 6th. Guggenheim dropped their target price on shares of Kyndryl from $30.00 to $28.00 and set a “buy” rating on the stock in a report on Tuesday, February 3rd. Finally, Zacks Research upgraded shares of Kyndryl from a “strong sell” rating to a “hold” rating in a research report on Wednesday, November 12th. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Kyndryl presently has a consensus rating of “Hold” and an average target price of $32.80.

Kyndryl Stock Down 53.2%

KD traded down $12.50 during trading on Monday, hitting $10.99. The company had a trading volume of 13,488,934 shares, compared to its average volume of 2,738,858. Kyndryl has a 1-year low of $10.11 and a 1-year high of $44.20. The company has a debt-to-equity ratio of 2.24, a current ratio of 1.02 and a quick ratio of 1.02. The company has a market cap of $2.51 billion, a PE ratio of 6.55 and a beta of 1.84. The business has a 50-day moving average of $25.83 and a 200-day moving average of $28.48.

Kyndryl (NYSE:KD) last released its earnings results on Monday, February 9th. The company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.08). The company had revenue of $3.86 billion during the quarter, compared to the consensus estimate of $3.89 billion. Kyndryl had a return on equity of 25.76% and a net margin of 2.71%.Kyndryl’s revenue for the quarter was up .6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.51 EPS. As a group, analysts forecast that Kyndryl will post 0.73 earnings per share for the current year.

Insider Buying and Selling at Kyndryl

In related news, SVP Vineet Khurana sold 6,641 shares of Kyndryl 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 sale, 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 position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Kyndryl

A number of hedge funds have recently made changes to their positions in the business. Assetmark Inc. boosted its position in shares of Kyndryl by 75.3% during the 2nd quarter. Assetmark Inc. now owns 775 shares of the company’s stock valued at $33,000 after purchasing an additional 333 shares in the last quarter. Smartleaf Asset Management LLC boosted its holdings in Kyndryl by 192.0% during the third quarter. Smartleaf Asset Management LLC now owns 1,171 shares of the company’s stock worth $35,000 after buying an additional 770 shares in the last quarter. NBT Bank N A NY grew its position in Kyndryl by 3,220.0% in the fourth 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. Thurston Springer Miller Herd & Titak Inc. grew its position in Kyndryl by 4,475.0% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,464 shares of the company’s stock worth $39,000 after buying an additional 1,432 shares during the last quarter. Finally, Flagship Harbor Advisors LLC bought a new position in shares of Kyndryl in the fourth quarter valued at $39,000. Institutional investors own 71.53% of the company’s stock.

Key Stories Impacting Kyndryl

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Kyndryl reported adjusted EBITDA of $696M and highlighted double‑digit revenue growth in its Kyndryl Consult business, showing pockets of profitable growth and healthy alliance momentum. KYNDRYL REPORTS THIRD QUARTER FISCAL 2026 RESULTS
• Neutral Sentiment: Top‑line was essentially flat: revenue of $3.86–$3.9B (up ~0.6% year‑over‑year), which reduces the risk of a sharp downshift in demand but is not strong enough to offset other negatives. Press Release / Slide Deck
• Negative Sentiment: Earnings missed consensus — KD reported $0.52 EPS vs. ~$0.60 expected, missing estimates and undercutting near‑term investor expectations for profitability. Zacks: KD Lags Q3 Earnings
• Negative Sentiment: Management cut FY‑2026 revenue guidance to roughly $14.6–$14.8B versus a ~$15.6B consensus, signaling lower growth ahead and raising downside risk to estimates. (Company guidance released with results.)
• Negative Sentiment: Kyndryl filed a Form 12b‑25 to delay its 10‑Q, disclosing it expects material weaknesses in internal control over financial reporting for multiple periods — a major governance and audit red flag that increases regulatory and restatement risk. Reuters: Kyndryl delays quarterly filing
• Negative Sentiment: Chief Financial Officer David Wyshner has left amid the accounting review, adding short‑term leadership uncertainty in finance during a control investigation. WSJ: CFO Leaves

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.