Kyndryl (NYSE:KD) Cut to “Hold” at Wall Street Zen

Kyndryl (NYSE:KD) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

A number of other equities research analysts have also weighed in on the stock. Scotiabank initiated coverage on shares of Kyndryl in a research note on Tuesday, January 27th. They set an “outperform” rating on the stock. JPMorgan Chase & Co. lowered shares of Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 price objective for the company. in a report on Monday, February 9th. Guggenheim cut Kyndryl from a “buy” rating to a “neutral” rating in a research report on Tuesday. Oppenheimer reiterated a “market perform” rating on shares of Kyndryl in a report on Monday, February 9th. Finally, Susquehanna lowered their target price on Kyndryl from $35.00 to $16.00 and set a “positive” rating for the company in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $29.00.

Kyndryl Price Performance

KD opened at $12.24 on Friday. 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 stock has a market capitalization of $2.80 billion, a PE ratio of 11.66 and a beta of 1.84. The stock’s 50 day moving average price is $24.37 and its 200-day moving average price is $27.67. Kyndryl has a 52-week low of $10.10 and a 52-week high of $44.20.

Kyndryl (NYSE:KD) last announced its quarterly 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 business had revenue of $3.86 billion during the quarter, compared to analysts’ expectations 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% compared to the same quarter last year. During the same period in the previous year, the business earned $0.51 EPS. On average, equities research analysts predict that Kyndryl will post 0.73 EPS for the current year.

Insider Buying and Selling at Kyndryl

In other news, SVP Vineet Khurana sold 6,641 shares of Kyndryl stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $26.69, for a total transaction of $177,248.29. Following the completion of the transaction, the senior vice president directly owned 59,708 shares in the company, valued at approximately $1,593,606.52. This trade represents a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Assetmark Inc. boosted its stake in Kyndryl by 75.3% during the 2nd quarter. Assetmark Inc. now owns 775 shares of the company’s stock valued at $33,000 after purchasing an additional 333 shares during the last quarter. Los Angeles Capital Management LLC bought a new position in shares of Kyndryl during the fourth quarter valued at $29,000. Employees Retirement System of Texas purchased a new stake in shares of Kyndryl during the second quarter valued at $49,000. Smartleaf Asset Management LLC increased its holdings in Kyndryl by 192.0% in the 3rd quarter. Smartleaf Asset Management LLC now owns 1,171 shares of the company’s stock worth $35,000 after buying an additional 770 shares in the last quarter. Finally, Quarry LP purchased a new position in Kyndryl in the 4th quarter worth about $31,000. 71.53% of the stock is owned by hedge funds and other institutional investors.

Key Kyndryl News

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Kyndryl won a material client deal to modernize Yamaguchi Financial Group’s core banking into a shared, multi‑bank platform — a revenue‑supporting contract in Japan. Yamaguchi Financial Group deal
• Positive Sentiment: Kyndryl launched Kyndryl Intelligent Recovery Service (KIRS), an AI‑integrated, cloud‑based cyber‑recovery offering that can drive sales in security/resilience projects. KIRS launch
• Neutral Sentiment: Market commentary notes unusual options activity and continued deal execution risks (deal slippages mentioned alongside an extended Hertz engagement) — these items can add volatility but are not definitive drivers by themselves. Unusually large options trading Hertz partnership update
• Negative Sentiment: A flurry of securities‑fraud class action filings and solicitor notices from multiple law firms allege investor harm covering the period Aug 7, 2024–Feb 9, 2026; firms are soliciting lead‑plaintiff applications (deadline Apr 13, 2026), increasing legal exposure and potential settlement risk. Robbins LLP class action alert
• Negative Sentiment: Independent investigations by multiple plaintiff firms (Schall, Kessler Topaz, Rosen, BFA and others) are probing potential misstatements about cash management and internal controls — these probes usually precede formal litigation and can drive regulatory scrutiny and remediation costs. Kessler Topaz investor alert
• Negative Sentiment: Regulatory and disclosure shock: filings allege the stock plunged after Kyndryl disclosed it would not timely file its quarterly report, cited material internal control weaknesses (“tone at the top”), senior exec departures and an SEC document request — factors that materially increase execution and regulatory risk. Hagens Berman summary of disclosures
• Negative Sentiment: Separate firm commentary highlights that Kyndryl’s shift from adjusted to reported free‑cash‑flow and an internal accounting review preceded the investigation into cash management — a detail central to many plaintiffs’ allegations. Accounting review / cash management note

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.