Kyndryl (NYSE:KD) Stock Rating Lowered by JPMorgan Chase & Co.

Kyndryl (NYSE:KD) was downgraded by equities research analysts at JPMorgan Chase & Co. from an “overweight” rating to an “underweight” rating in a note issued to investors on Monday. They currently have a $16.00 target price on the stock. JPMorgan Chase & Co.‘s price objective would suggest a potential upside of 45.53% from the company’s previous close.

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

Kyndryl Stock Down 53.2%

NYSE:KD traded down $12.50 during midday trading on Monday, hitting $10.99. 13,488,934 shares of the company were exchanged, compared to its average volume of 2,738,858. Kyndryl has a fifty-two week low of $10.11 and a fifty-two week high of $44.20. The company has a market capitalization of $2.51 billion, a PE ratio of 6.55 and a beta of 1.84. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 2.24. The company has a fifty day simple moving average of $25.83 and a 200 day simple moving average of $28.48.

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

Insiders Place Their Bets

In other news, SVP Vineet Khurana sold 6,641 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $26.69, for a total transaction of $177,248.29. Following the completion of the transaction, the senior vice president directly owned 59,708 shares of the company’s stock, 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 at this hyperlink. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Penserra Capital Management LLC boosted its stake in shares of Kyndryl by 21.1% in the third quarter. Penserra Capital Management LLC now owns 315,439 shares of the company’s stock valued at $9,472,000 after purchasing an additional 54,945 shares during the period. Thrivent Financial for Lutherans boosted its position in Kyndryl by 18.2% in the 3rd quarter. Thrivent Financial for Lutherans now owns 616,006 shares of the company’s stock valued at $18,499,000 after buying an additional 94,908 shares during the last quarter. State of Alaska Department of Revenue grew its stake in shares of Kyndryl by 205.3% during the third quarter. State of Alaska Department of Revenue now owns 79,648 shares of the company’s stock valued at $2,391,000 after acquiring an additional 53,556 shares in the last quarter. Allianz Asset Management GmbH increased its position in shares of Kyndryl by 56.1% during the third quarter. Allianz Asset Management GmbH now owns 1,077,425 shares of the company’s stock worth $32,355,000 after acquiring an additional 387,408 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. increased its position in shares of Kyndryl by 25.7% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 879,404 shares of the company’s stock worth $36,900,000 after acquiring an additional 179,743 shares during the last quarter. Hedge funds and other institutional investors own 71.53% of the company’s stock.

Kyndryl News Summary

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

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.