Kyndryl (NYSE:KD) Coverage Initiated at Scotiabank

Research analysts at Scotiabank assumed coverage on shares of Kyndryl (NYSE:KD) in a report released on Tuesday. The brokerage set a “sector outperform” rating and a $40.00 price target on the stock. Scotiabank’s price target would suggest a potential upside of 65.56% from the stock’s current price.

KD has been the topic of a number of other research reports. Zacks Research raised shares of Kyndryl from a “strong sell” rating to a “hold” rating in a report on Wednesday, November 12th. Guggenheim raised shares of Kyndryl to a “strong-buy” rating in a report on Wednesday, November 26th. Weiss Ratings reissued a “hold (c)” rating on shares of Kyndryl in a research note on Wednesday, October 8th. Susquehanna set a $35.00 price target on Kyndryl in a research report on Thursday, November 6th. Finally, JPMorgan Chase & Co. cut their price objective on Kyndryl from $45.00 to $40.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Kyndryl presently has a consensus rating of “Moderate Buy” and an average price target of $38.33.

Kyndryl Price Performance

Shares of Kyndryl stock traded down $0.29 during trading on Tuesday, hitting $24.16. The stock had a trading volume of 415,171 shares, compared to its average volume of 1,882,392. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 2.24. Kyndryl has a 12 month low of $23.28 and a 12 month high of $44.20. The firm has a market cap of $5.52 billion, a price-to-earnings ratio of 14.30 and a beta of 1.85. The business’s 50-day moving average is $26.10 and its 200 day moving average is $29.50.

Kyndryl (NYSE:KD) last posted its earnings results on Tuesday, November 4th. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.33 by $0.05. The business had revenue of $3.72 billion during the quarter, compared to analysts’ expectations of $3.84 billion. Kyndryl had a return on equity of 25.76% and a net margin of 2.71%.The firm’s revenue was down 1.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.01 earnings per share. As a group, sell-side analysts anticipate that Kyndryl will post 0.73 earnings per share for the current year.

Insiders Place Their Bets

In related news, SVP Vineet Khurana sold 6,641 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $26.69, for a total transaction of $177,248.29. Following the transaction, the senior vice president directly owned 59,708 shares in the company, valued at $1,593,606.52. This trade represents a 10.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in KD. Louisiana State Employees Retirement System boosted its holdings in shares of Kyndryl by 0.5% during the second quarter. Louisiana State Employees Retirement System now owns 65,500 shares of the company’s stock worth $2,748,000 after purchasing an additional 300 shares during the period. Assetmark Inc. grew its position in shares of Kyndryl by 75.3% in the 2nd quarter. Assetmark Inc. now owns 775 shares of the company’s stock worth $33,000 after buying an additional 333 shares during the last quarter. Bessemer Group Inc. increased its stake in shares of Kyndryl by 11.2% during the second quarter. Bessemer Group Inc. now owns 3,476 shares of the company’s stock valued at $145,000 after buying an additional 351 shares during the period. Coldstream Capital Management Inc. increased its stake in shares of Kyndryl by 4.9% during the second quarter. Coldstream Capital Management Inc. now owns 7,933 shares of the company’s stock valued at $333,000 after buying an additional 368 shares during the period. Finally, ProShare Advisors LLC raised its holdings in shares of Kyndryl by 4.1% during the second quarter. ProShare Advisors LLC now owns 10,316 shares of the company’s stock valued at $433,000 after acquiring an additional 402 shares in the last quarter. 71.53% of the stock is owned by hedge funds and other 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.