Kyndryl (NYSE:KD) Shares Gap Up – Should You Buy?

Kyndryl Holdings, Inc. (NYSE:KD) 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.

Key Kyndryl News

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Kyndryl launched a Cyber Defense Operations Center in Bengaluru to combine network and security operations, which could strengthen service offerings and help win enterprise security and managed‑services contracts. Kyndryl launches Cyber Defense Operations Center to unify enterprise IT operations
• Positive Sentiment: Markets reacted positively to news of financial‑statement compliance steps (an earlier report noted an ~11% intraday rally), suggesting some investors view remediation progress as reducing regulatory/filing risk. Kyndryl (KD) Soars 11% on Financial Statement Compliance
• Neutral Sentiment: Options activity surged in KD (Russell 1000 attention), indicating heightened trader/speculator interest and potential for increased intraday volatility but not a directional fundamental change. Kyndryl Holdings (NYSE:KD) Sees Options Surge in Russell 1000
• Negative Sentiment: A securities class action alleges material misstatements/omissions tied to missed filings, internal control weaknesses, executive departures and an SEC document request — allegations that followed a steep earlier share decline and could mean legal exposure and management distraction. (Lead plaintiff deadline: April 13, 2026.) KD SHAREHOLDER NOTICE: Kyndryl Holdings Facing Securities Class Action Amid 55% Stock Drop After Four Bombshell Disclosures – Hagens Berman
• Negative Sentiment: Dozens of law firms (Levi & Korsinsky, Glancy Prongay, Kessler Topaz, Bronstein, Portnoy, Faruqi, Gross, Robbins Geller, Bernstein, BFA, Rosen, Pomerantz, etc.) have issued investor alerts and lead‑plaintiff solicitations—amplifying negative headlines and keeping legal risk and headline volatility in focus. Shareholders that lost money on Kyndryl Holdings, Inc.(KD) should contact Levi & Korsinsky about pending Class Action – KD

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Susquehanna decreased their price target on shares of Kyndryl from $35.00 to $16.00 and set a “positive” rating for the company in a research report on Friday, February 13th. Scotiabank initiated coverage on shares of Kyndryl in a research note on Tuesday, January 27th. They issued an “outperform” rating on the stock. Wall Street Zen downgraded Kyndryl from a “buy” rating to a “hold” rating in a report on Saturday, February 14th. Oppenheimer reaffirmed a “market perform” rating on shares of Kyndryl in a report on Monday, February 9th. Finally, 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 research report on Monday, February 9th. Two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Kyndryl has an average rating of “Hold” and an average target price of $29.00.

Kyndryl Trading Down 2.5%

The company has a debt-to-equity ratio of 2.24, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market cap of $2.92 billion, a price-to-earnings ratio of 12.18 and a beta of 1.84. The firm’s fifty day moving average is $23.54 and its 200-day moving average is $27.08.

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

Insiders Place Their Bets

In other Kyndryl news, SVP Vineet Khurana sold 6,641 shares of the 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 approximately $1,593,606.52. This represents a 10.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Kyndryl

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its holdings in shares of Kyndryl by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 28,331,302 shares of the company’s stock worth $752,479,000 after purchasing an additional 144,625 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of Kyndryl by 53.9% in the fourth quarter. AQR Capital Management LLC now owns 6,443,037 shares of the company’s stock valued at $170,934,000 after buying an additional 2,255,860 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Kyndryl by 1.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,684,443 shares of the company’s stock valued at $124,420,000 after buying an additional 76,614 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Kyndryl by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 4,456,962 shares of the company’s stock worth $118,997,000 after acquiring an additional 63,846 shares in the last quarter. Finally, Sound Shore Management Inc. CT raised its holdings in shares of Kyndryl by 46.1% in the 4th quarter. Sound Shore Management Inc. CT now owns 2,974,223 shares of the company’s stock worth $78,995,000 after acquiring an additional 939,154 shares during the last quarter. Institutional investors and hedge funds own 71.53% of the company’s stock.

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.