Kyndryl Target of Unusually High Options Trading (NYSE:KD)

Kyndryl Holdings, Inc. (NYSE:KD) was the target of some unusual options trading activity on Wednesday. Stock investors bought 5,399 put options on the company. This represents an increase of 174% compared to the average daily volume of 1,968 put options.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Oppenheimer reissued a “market perform” rating on shares of Kyndryl in a research report on Monday. Zacks Research upgraded Kyndryl from a “strong sell” rating to a “hold” rating in a research report on Wednesday, November 12th. JPMorgan Chase & Co. downgraded Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 price objective for the company. in a research report on Monday. Scotiabank initiated coverage on shares of Kyndryl in a research note on Tuesday, January 27th. They set an “outperform” rating for the company. Finally, Susquehanna set a $35.00 price objective on shares of Kyndryl in a report on Thursday, November 6th. Two research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $32.80.

Insiders Place Their Bets

In other Kyndryl news, SVP Vineet Khurana sold 6,641 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $26.69, for a total value of $177,248.29. Following the transaction, the senior vice president directly 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Assetmark Inc. lifted its holdings in Kyndryl by 75.3% in the second quarter. Assetmark Inc. now owns 775 shares of the company’s stock valued at $33,000 after acquiring an additional 333 shares during the period. Bessemer Group Inc. increased its holdings in Kyndryl by 11.2% during the 2nd quarter. Bessemer Group Inc. now owns 3,476 shares of the company’s stock valued at $145,000 after acquiring an additional 351 shares in the last quarter. Coldstream Capital Management Inc. lifted its holdings in shares of Kyndryl by 4.9% in the second quarter. Coldstream Capital Management Inc. now owns 7,933 shares of the company’s stock valued at $333,000 after purchasing an additional 368 shares in the last quarter. ProShare Advisors LLC grew its position in shares of Kyndryl by 4.1% in the second quarter. ProShare Advisors LLC now owns 10,316 shares of the company’s stock valued at $433,000 after purchasing an additional 402 shares during the last quarter. Finally, Public Employees Retirement System of Ohio lifted its stake in 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 buying an additional 421 shares in the last quarter. 71.53% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Kyndryl

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Kyndryl announced a new product capability—policy‑as‑code governance for agentic AI workflows—that aims to help regulated customers deploy mission‑critical AI agents with automated compliance and auditability; this is a constructive product/market signal for the services pipeline. Kyndryl Unveils Agentic AI Workflow Governance
• Neutral Sentiment: Unusual options activity: traders bought ~5,399 put contracts today (about a 174% increase vs. average), indicating elevated hedging/speculation and higher near‑term volatility for the stock.
• Neutral Sentiment: Oppenheimer reaffirmed its Market Perform rating (limited near‑term catalyst), while some other firms have moved more bearish—mixed analyst posture contributes to uncertain sentiment. Oppenheimer Reaffirms “Market Perform” Rating
• Negative Sentiment: Multiple securities law firms have opened investigations into Kyndryl, alleging potential misleading statements tied to accounting and disclosures; these inquiries raise the probability of costly litigation and further reputational damage. Robbins Geller Investigation Notice
• Negative Sentiment: Regulatory and governance red flags: Kyndryl delayed filing its quarterly report, disclosed an internal accounting/control review and reported the abrupt departures of its CFO and GC; those developments have triggered SEC document requests and accelerated investor scrutiny. Hagens Berman: Late Filing, CFO & GC Departures
• Negative Sentiment: Analyst moves: Guggenheim and JPMorgan have turned more cautious on KD, including downgrades and underweight ratings, which can pressure demand for the stock while uncertainty persists. Guggenheim Downgrades Kyndryl JPMorgan Lowers Rating
• Negative Sentiment: Fundamentals and guidance concerns: recent earnings missed expectations, guidance was cut and the company’s market cap compressed sharply after the disclosure events—investors should treat current rallies as tentative until filings, audit outcomes and management stability are resolved. Looking At Kyndryl After A 50%+ Drop

Kyndryl Stock Up 7.2%

KD traded up $0.81 during trading hours on Wednesday, hitting $11.93. 7,765,476 shares of the company’s stock were exchanged, compared to its average volume of 5,855,975. 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 $10.10 and a 12-month high of $44.20. The firm has a market cap of $2.73 billion, a P/E ratio of 11.30 and a beta of 1.84. The firm has a 50 day moving average of $25.23 and a 200 day moving average of $28.09.

Kyndryl (NYSE:KD) last issued its earnings results on Monday, February 9th. The company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.08). The firm 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 for the quarter was up .6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.51 EPS. Analysts predict that Kyndryl will post 0.73 EPS for the current fiscal year.

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.