Kyndryl (NYSE:KD) Shares Gap Down – Time to Sell?

Kyndryl Holdings, Inc. (NYSE:KD)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $12.32, but opened at $11.49. Kyndryl shares last traded at $11.2310, with a volume of 1,197,557 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on KD shares. Wall Street Zen lowered shares of Kyndryl from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Kyndryl in a report on Monday, June 15th. Scotiabank dropped their price objective on Kyndryl from $16.50 to $15.00 and set a “sector perform” rating on the stock in a research note on Friday, May 8th. Morgan Stanley reduced their price objective on Kyndryl from $28.00 to $13.00 and set an “equal weight” rating on the stock in a report on Tuesday, March 24th. Finally, BMO Capital Markets assumed coverage on Kyndryl in a research report on Monday, April 20th. They set a “market perform” rating and a $15.00 target price for the company. Six investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $16.67.

Kyndryl Stock Performance

The company has a debt-to-equity ratio of 1.77, a quick ratio of 0.88 and a current ratio of 0.88. The firm has a market cap of $2.53 billion, a P/E ratio of 13.51 and a beta of 1.67. The firm’s fifty day moving average price is $11.86 and its 200 day moving average price is $15.42.

Kyndryl (NYSE:KD) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.25). Kyndryl had a return on equity of 20.43% and a net margin of 1.31%.The business had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.74 billion. During the same period in the previous year, the company posted $0.52 EPS. Kyndryl’s revenue for the quarter was down .8% on a year-over-year basis. Sell-side analysts expect that Kyndryl Holdings, Inc. will post 1.54 EPS for the current fiscal year.

Institutional Trading of Kyndryl

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Versant Capital Management Inc increased its holdings in shares of Kyndryl by 104.1% in the 2nd quarter. Versant Capital Management Inc now owns 2,418 shares of the company’s stock valued at $27,000 after acquiring an additional 1,233 shares during the period. Western Wealth Management LLC bought a new position in shares of Kyndryl in the 1st quarter worth $29,000. Los Angeles Capital Management LLC purchased a new stake in shares of Kyndryl during the 4th quarter worth $29,000. Quarry LP purchased a new stake in shares of Kyndryl during the 4th quarter worth $31,000. Finally, NBT Bank N A NY boosted its position in Kyndryl by 3,220.0% during the fourth quarter. NBT Bank N A NY now owns 1,328 shares of the company’s stock valued at $35,000 after purchasing an additional 1,288 shares in the last quarter. Institutional investors own 71.53% of the company’s stock.

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.