Kyndryl Holdings Inc. (NYSE:KD) announced its quarterly earnings on Tuesday, revealing a strong performance that surpassed analysts’ expectations. The company reported earnings per share (EPS) of $0.38, exceeding the consensus estimate of $0.33 by $0.05. Despite this positive news, Kyndryl’s revenue for the quarter was $3.72 billion, falling short of the anticipated $3.84 billion.
Kyndryl’s financial metrics indicate a net margin of 1.97% and a return on equity of 19.88%. Comparatively, during the same quarter last year, the company reported an EPS of $0.01. The latest figures represent a 1.4% decrease in revenue year-over-year, a factor that may raise concerns for investors.
Market Response and Stock Performance
Following the earnings report, Kyndryl’s stock experienced a decline during trading hours on Wednesday, dropping $1.44 to $25.99. The trading volume reached 6,116,319 shares, significantly higher than the average of 2,318,129. The company’s financial ratios revealed a quick ratio of 1.05 and a current ratio of 1.05, while the debt-to-equity ratio stood at 2.24. Kyndryl’s stock has fluctuated between a fifty-two week low of $23.20 and a high of $44.20. Currently, the market capitalization is approximately $6.01 billion, with a price-to-earnings (P/E) ratio of 21.47.
Analysts’ Ratings and Institutional Investments
Several analysts have recently provided updates on Kyndryl’s stock. On October 8th, Weiss Ratings maintained a “hold (c)” rating. Meanwhile, Wall Street Zen downgraded Kyndryl from a “strong-buy” to a “buy” rating on July 12th. Oppenheimer increased its price target from $47.00 to $55.00, assigning an “outperform” rating on July 8th. Conversely, Zacks Research lowered its rating from “hold” to “strong sell” on September 29th. Morgan Stanley initiated coverage, setting an “equal weight” rating with a price target of $30.00.
Currently, three analysts have rated Kyndryl as a Buy, two have given it a Hold rating, and one has issued a Sell rating. According to MarketBeat.com, the average rating for Kyndryl stands at “Hold,” with an average price target of $42.00.
Institutional investors hold a significant stake in Kyndryl, owning 71.53% of the company. Recently, Geneos Wealth Management Inc. increased its shareholding by 62.2% during the second quarter, now holding 1,487 shares valued at $62,000. Integrated Wealth Concepts LLC raised its position by 15.8%, while Northwestern Mutual Wealth Management Co. boosted its stake by 116.9%. Other firms, including Brown Advisory Inc. and EP Wealth Advisors LLC, also expanded their investments in Kyndryl.
Kyndryl operates globally as a technology services and IT infrastructure provider. The company offers a range of services, including cloud solutions, enterprise services, digital workplace services, and security services, among others. As it continues to navigate the challenges of the technology sector, Kyndryl’s ability to enhance its revenue will be critical for future growth.
