Kyndryl (NYSE:KD) Stock Price Up 6% – Here’s Why

Kyndryl Holdings, Inc. (NYSE:KD) shares shot up 6% on Tuesday . The company traded as high as $12.47 and last traded at $12.2640. 922,643 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 4,679,197 shares. The stock had previously closed at $11.57.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on KD. Susquehanna downgraded shares of Kyndryl from a “positive” rating to a “neutral” rating and lowered their target price for the company from $16.00 to $13.00 in a research note on Thursday, May 21st. Morgan Stanley lowered their target price on shares of Kyndryl from $28.00 to $13.00 and set an “equal weight” rating on the stock in a research note on Tuesday, March 24th. Scotiabank lowered their target price on shares of Kyndryl from $16.50 to $15.00 and set a “sector perform” rating on the stock in a research note on Friday, May 8th. Zacks Research downgraded shares of Kyndryl from a “hold” rating to a “strong sell” rating in a research note on Wednesday, February 18th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Kyndryl in a research note on Monday. Six analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Kyndryl presently has an average rating of “Reduce” and a consensus target price of $22.14.

Kyndryl Price Performance

The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 1.77. The business’s 50-day simple moving average is $12.57 and its 200 day simple moving average is $17.32. The firm has a market capitalization of $2.52 billion, a P/E ratio of 13.46 and a beta of 1.66.

Kyndryl (NYSE:KD) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.25). Kyndryl had a net margin of 1.31% and a return on equity of 20.43%. The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.74 billion. During the same quarter in the previous year, the business earned $0.52 earnings per share. The firm’s revenue was down .8% on a year-over-year basis. Sell-side analysts forecast that Kyndryl Holdings, Inc. will post 1.59 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Public Employees Retirement System of Ohio grew its position in Kyndryl by 0.5% during the third quarter. Public Employees Retirement System of Ohio now owns 77,612 shares of the company’s stock valued at $2,331,000 after acquiring an additional 421 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in Kyndryl by 17.1% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 3,064 shares of the company’s stock valued at $92,000 after acquiring an additional 448 shares during the last quarter. Crossmark Global Holdings Inc. grew its position in Kyndryl by 3.4% during the third quarter. Crossmark Global Holdings Inc. now owns 14,625 shares of the company’s stock valued at $439,000 after acquiring an additional 487 shares during the last quarter. Geneos Wealth Management Inc. grew its position in Kyndryl by 62.2% during the second quarter. Geneos Wealth Management Inc. now owns 1,487 shares of the company’s stock valued at $62,000 after acquiring an additional 570 shares during the last quarter. Finally, Equitable Holdings Inc. grew its holdings in shares of Kyndryl by 2.8% in the third quarter. Equitable Holdings Inc. now owns 25,560 shares of the company’s stock worth $768,000 after purchasing an additional 698 shares during the last quarter. 71.53% of the stock is currently owned by institutional investors.

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.