Kyndryl (NYSE:KD) Shares Gap Up – Time to Buy?

Shares of Kyndryl Holdings, Inc. (NYSE:KD) gapped up before the market opened on Tuesday . The stock had previously closed at $12.24, but opened at $13.00. Kyndryl shares last traded at $13.3180, with a volume of 2,872,991 shares trading hands.

Kyndryl News Summary

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Kyndryl filed its Form 10‑Q for the quarter ended Dec. 31, 2025 and submitted amendments to prior filings, stating there will be no restatement of current or previously reported financial statements — which reduced a principal short‑term risk related to delayed reporting. Form 10-Q Filing
• Positive Sentiment: Business press noted a “positive accounting update” tied to the filing and flagged that the disclosure removed a key near‑term uncertainty — coverage that likely amplified buying interest. Barron’s Article
• Neutral Sentiment: Unusually large options flow: investors bought roughly 8,160 KD call options (about +267% vs. average daily call volume), indicating increased speculative bullish positioning that can amplify intraday moves.
• Neutral Sentiment: Kyndryl announced expanded AI skilling programs in India (CSR/long‑term strategic initiative), which supports the company’s service positioning but is unlikely to move near‑term fundamentals. AI Skilling Release
• Negative Sentiment: Significant legal overhang — multiple law firms have filed or are soliciting lead‑plaintiff motions in securities class actions alleging Kyndryl misled investors (claims cite delayed filings, alleged internal‑control weaknesses, an SEC document request and the sharp Feb. 9 selloff). The suits and numerous solicitations (lead‑plaintiff deadline April 13, 2026) keep litigation risk and potential liability squarely in focus. Hagens Berman Notice
• Negative Sentiment: Underlying business results remain a concern: recent quarter missed some expectations and the company trimmed sales and free‑cash‑flow targets for the fiscal year, which is a driver of continued analyst skepticism. Fool Coverage

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on KD shares. Wall Street Zen cut Kyndryl from a “buy” rating to a “hold” rating in a research report on Saturday. Susquehanna cut their price objective on shares of Kyndryl from $35.00 to $16.00 and set a “positive” rating on the stock in a research note on Friday. Zacks Research raised shares of Kyndryl from a “strong sell” rating to a “hold” rating in a report on Wednesday, November 12th. Scotiabank initiated coverage on Kyndryl in a research report on Tuesday, January 27th. They set an “outperform” rating on the stock. Finally, JPMorgan Chase & Co. cut Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 price target for the company. in a research report on Monday, February 9th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $29.00.

Kyndryl Stock Up 9.7%

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 business’s 50 day moving average price is $24.10 and its 200 day moving average price is $27.34. The firm has a market cap of $3.07 billion, a PE ratio of 12.79 and a beta of 1.85.

Kyndryl (NYSE:KD) last posted its quarterly earnings data on Monday, February 9th. The company reported $0.52 EPS for the quarter, missing the consensus estimate of $0.60 by ($0.08). The firm had revenue of $3.86 billion for the quarter, compared to analysts’ expectations of $3.89 billion. Kyndryl had a return on equity of 25.77% and a net margin of 1.65%.Kyndryl’s quarterly revenue was up .6% on a year-over-year basis. During the same quarter last year, the firm posted $0.51 earnings per share. On average, equities research analysts expect that Kyndryl Holdings, Inc. will post 0.73 earnings per share for the current year.

Insider Buying and Selling

In related news, SVP Vineet Khurana sold 6,641 shares of the 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 sale, the senior vice president owned 59,708 shares of the company’s stock, valued at approximately $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 can be accessed through this link. Insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of KD. Royal Bank of Canada increased its position in Kyndryl by 50.2% during the first quarter. Royal Bank of Canada now owns 148,178 shares of the company’s stock worth $4,653,000 after purchasing an additional 49,504 shares during the last quarter. Integrated Wealth Concepts LLC increased its holdings in shares of Kyndryl by 15.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 8,025 shares of the company’s stock worth $252,000 after buying an additional 1,093 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Kyndryl by 1.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 733,068 shares of the company’s stock valued at $23,018,000 after acquiring an additional 11,177 shares during the last quarter. Sequoia Financial Advisors LLC purchased a new position in Kyndryl in the second quarter worth approximately $233,000. Finally, New York State Teachers Retirement System increased its stake in Kyndryl by 1.0% during the second quarter. New York State Teachers Retirement System now owns 211,104 shares of the company’s stock worth $8,858,000 after acquiring an additional 2,015 shares during the last quarter. Hedge funds and other institutional investors own 71.53% of the company’s stock.

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.