Kyndryl (NYSE:KD) Shares Gap Up – What’s Next?

Kyndryl Holdings, Inc. (NYSE:KD)’s stock price gapped up prior to trading 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 changing hands.

More Kyndryl News

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

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on KD shares. Oppenheimer reiterated a “market perform” rating on shares of Kyndryl in a report on Monday, February 9th. JPMorgan Chase & Co. lowered Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 price target on the stock. in a report on Monday, February 9th. Scotiabank initiated coverage on Kyndryl in a research report on Tuesday, January 27th. They set an “outperform” rating on the stock. Zacks Research raised Kyndryl from a “strong sell” rating to a “hold” rating in a research report on Wednesday, November 12th. Finally, Wall Street Zen cut Kyndryl from a “buy” rating to a “hold” rating in a research note on Saturday. Two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $29.00.

Kyndryl Stock Up 9.7%

The stock has a 50-day moving average of $24.10 and a two-hundred day moving average of $27.34. The company has a debt-to-equity ratio of 2.24, a quick ratio of 1.02 and a current ratio of 1.02. The company has a market cap of $3.07 billion, a P/E ratio of 12.79 and a beta of 1.85.

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

Insider Activity at Kyndryl

In other news, SVP Vineet Khurana sold 6,641 shares of the firm’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $26.69, for a total transaction of $177,248.29. Following the sale, the senior vice president 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 legal filing with the SEC, which is available through this link. 1.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kyndryl

Several institutional investors have recently modified their holdings of KD. Assetmark Inc. grew its stake in Kyndryl by 75.3% in the 2nd quarter. Assetmark Inc. now owns 775 shares of the company’s stock worth $33,000 after acquiring an additional 333 shares in the last quarter. Bessemer Group Inc. grew its holdings in Kyndryl by 11.2% during the 2nd quarter. Bessemer Group Inc. now owns 3,476 shares of the company’s stock worth $145,000 after acquiring an additional 351 shares in the last quarter. Coldstream Capital Management Inc. lifted its position in shares of Kyndryl by 4.9% in the 2nd quarter. Coldstream Capital Management Inc. now owns 7,933 shares of the company’s stock worth $333,000 after purchasing an additional 368 shares during the period. ProShare Advisors LLC lifted its holdings in Kyndryl by 4.1% during the second quarter. ProShare Advisors LLC now owns 10,316 shares of the company’s stock worth $433,000 after buying an additional 402 shares during the period. Finally, Public Employees Retirement System of Ohio increased its holdings in shares of Kyndryl by 0.5% in the 3rd 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 period. 71.53% of the stock is owned by institutional investors.

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.