Kyndryl (NYSE:KD) Stock Falls 5.1% – Here’s What Happened

Kyndryl Holdings, Inc. (NYSE:KD)’s share price was down 5.1% during mid-day trading on Tuesday. The company traded as low as $12.81 and last traded at $12.8810. Approximately 752,298 shares traded hands during trading, a decline of 83% from the average daily volume of 4,445,825 shares. The stock had previously closed at $13.57.

Kyndryl News Summary

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Fiscal Q2 2027 adjusted earnings were $0.42 per share, above analyst estimates of about $0.38, while revenue of $3.65 billion also topped expectations. Kyndryl cited growth in consulting and hyperscaler-related revenue and strong deal signings. Kyndryl second-quarter results
• Positive Sentiment: The company reaffirmed its fiscal 2027 outlook, including a $400 million–$500 million free-cash-flow target. It is also targeting $400 million–$500 million in annualized operating-cost savings in fiscal 2028. Free-cash-flow and savings targets
• Positive Sentiment: Kyndryl announced an agentic-AI modernization offering with AWS, combining its services and workflows with AWS Transform to help customers modernize applications and deploy AI-ready systems. The partnership may support demand for its modernization services. Kyndryl and AWS announcement
• Neutral Sentiment: Scotiabank raised its price target to $19 and kept a “sector perform” rating; Susquehanna raised its target to $16 while maintaining “neutral.” The higher targets are supportive, but neither firm expressed a bullish rating.
• Negative Sentiment: Revenue fell 1.9% year over year, and reported net income was $59 million, versus adjusted net income of $92 million. A separate analysis also suggested KD could be overvalued despite the earnings beat. Valuation analysis

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Zacks Research raised Kyndryl from a “strong sell” rating to a “hold” rating in a report on Monday, September 14th. Weiss Ratings reissued a “sell (d)” rating on shares of Kyndryl in a report on Tuesday. BMO Capital Markets restated a “market perform” rating and set a $16.00 target price on shares of Kyndryl in a research report on Thursday, August 6th. Scotiabank upped their price target on shares of Kyndryl from $15.00 to $19.00 and gave the stock a “sector perform” rating in a research note on Thursday. Finally, JPMorgan Chase & Co. increased their price target on shares of Kyndryl from $13.00 to $14.00 and gave the company an “underweight” rating in a report on Monday, August 10th. Seven investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $17.67.

Kyndryl Stock Performance

The stock has a market cap of $3.54 billion, a price-to-earnings ratio of 43.92 and a beta of 1.62. The company has a debt-to-equity ratio of 1.96, a current ratio of 0.85 and a quick ratio of 0.85. The stock’s 50-day moving average is $12.90 and its 200-day moving average is $13.45.

Kyndryl (NYSE:KD) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates of $0.38 by $0.04. The company had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.62 billion. Kyndryl had a net margin of 0.58% and a return on equity of 12.24%. Kyndryl’s revenue was down 1.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.38 earnings per share. Analysts anticipate that Kyndryl Holdings, Inc. will post 1.36 EPS for the current fiscal year.

Institutional Trading of Kyndryl

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Lido Advisors LLC acquired a new stake in shares of Kyndryl during the 3rd quarter worth about $184,000. AlphaCore Capital LLC acquired a new position in shares of Kyndryl in the third quarter valued at approximately $113,000. Fulcrum Asset Management LLP grew its position in shares of Kyndryl by 291.0% in the third quarter. Fulcrum Asset Management LLP now owns 122,202 shares of the company’s stock valued at $1,380,000 after purchasing an additional 90,952 shares during the last quarter. Ethic Inc. grew its position in shares of Kyndryl by 192.5% in the third quarter. Ethic Inc. now owns 29,925 shares of the company’s stock valued at $337,000 after purchasing an additional 19,693 shares during the last quarter. Finally, Kestra Advisory Services LLC increased its stake in shares of Kyndryl by 179.4% during the third quarter. Kestra Advisory Services LLC now owns 32,356 shares of the company’s stock worth $364,000 after purchasing an additional 20,775 shares during the period. Institutional investors own 71.53% of the company’s stock.

Kyndryl Company Profile

Kyndryl Holdings, Inc (NYSE:KD) is an information technology services company that designs, builds, manages and modernizes mission-critical technology systems for businesses and public-sector organizations. Its services help customers operate and transform complex IT environments, including cloud, data centers, networks, applications and digital workplaces.

The company provides consulting and implementation services as well as ongoing managed services. Its capabilities include cloud solutions, network and edge services, cybersecurity, data and artificial intelligence, application management, enterprise computing and technology modernization.