Kyndryl (NYSE:KD) Cut to “Strong Sell” at Zacks Research

Zacks Research cut shares of Kyndryl (NYSE:KD) from a hold rating to a strong sell rating in a report issued on Wednesday,Zacks.com reports.

A number of other analysts have also issued reports on KD. Scotiabank assumed coverage on shares of Kyndryl in a research report on Tuesday, January 27th. They issued an “outperform” rating for the company. Oppenheimer reiterated a “market perform” rating on shares of Kyndryl in a research report on Monday, February 9th. Susquehanna lowered their price target on shares of Kyndryl from $35.00 to $16.00 and set a “positive” rating on the stock in a report on Friday, February 13th. JPMorgan Chase & Co. downgraded shares of Kyndryl from an “overweight” rating to an “underweight” rating and set a $16.00 price target on the stock. in a research note on Monday, February 9th. Finally, Wall Street Zen cut Kyndryl from a “buy” rating to a “hold” rating in a research report on Saturday, February 14th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $29.00.

Kyndryl Price Performance

Shares of NYSE:KD opened at $12.53 on Wednesday. The company’s fifty day moving average is $22.97 and its two-hundred day moving average is $26.81. The company has a market cap of $2.82 billion, a P/E ratio of 11.93 and a beta of 1.84. Kyndryl has a 12-month low of $10.10 and a 12-month high of $44.20. The company has a quick ratio of 1.02, a current ratio of 0.86 and a debt-to-equity ratio of 1.75.

Kyndryl (NYSE:KD) last issued its earnings results on Monday, February 9th. The company reported $0.52 EPS for the quarter, missing the consensus estimate of $0.60 by ($0.08). The business had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.89 billion. Kyndryl had a return on equity of 25.91% and a net margin of 1.65%.The business’s quarterly revenue was up .6% on a year-over-year basis. During the same period last year, the business earned $0.51 EPS. Equities analysts expect that Kyndryl will post 0.73 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Vineet Khurana sold 6,641 shares of the company’s stock in a transaction 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 completion of the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 1.90% of the company’s stock.

Institutional Trading of Kyndryl

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. ING Groep NV bought a new stake in shares of Kyndryl during the 3rd quarter worth $9,188,000. Arnhold LLC raised its holdings in Kyndryl by 19.5% in the 3rd quarter. Arnhold LLC now owns 1,010,671 shares of the company’s stock worth $30,350,000 after acquiring an additional 164,856 shares during the period. Penserra Capital Management LLC lifted its position in Kyndryl by 21.1% during the 3rd quarter. Penserra Capital Management LLC now owns 315,439 shares of the company’s stock worth $9,472,000 after acquiring an additional 54,945 shares during the last quarter. Thrivent Financial for Lutherans boosted its holdings in Kyndryl by 18.2% during the third quarter. Thrivent Financial for Lutherans now owns 616,006 shares of the company’s stock valued at $18,499,000 after acquiring an additional 94,908 shares during the period. Finally, Bastion Asset Management Inc. acquired a new stake in shares of Kyndryl in the third quarter valued at about $7,326,000. Institutional investors and hedge funds own 71.53% of the company’s stock.

Key Stories Impacting Kyndryl

Here are the key news stories impacting Kyndryl this week:

• Positive Sentiment: Kyndryl opened a Cyber Defense Operations Center in Bengaluru to combine network and security operations, which could strengthen its managed security services revenue and operational capability for large enterprise customers. Read More.
• Neutral Sentiment: Numerous plaintiff law firms are soliciting Kyndryl investors and reminding holders of an April 13, 2026 deadline to seek lead‑plaintiff status in class actions covering Aug. 7, 2024–Feb. 9, 2026. This increases visibility of litigation but is procedural until courts appoint lead plaintiffs and complaints proceed. Read More.
• Negative Sentiment: Kyndryl filed amended quarterly and annual reports disclosing that its disclosure controls and internal control over financial reporting were ineffective for multiple quarters in 2025. Material internal‑control weaknesses raise risk of further restatements, regulatory scrutiny and investor lawsuits. Read More.
• Negative Sentiment: At least one securities class action alleges that a series of disclosures (late filing, “tone at the top” issues, exec departures and an SEC request) triggered a ~55% share plunge last week; that complaint increases litigation and settlement risk for KD. Read More.
• Negative Sentiment: Analyst action: Zacks moved KD to a “Strong Sell” ranking, reflecting near‑term concern among sell‑side models and amplifying downward pressure from sentiment shifts. Read More.

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.