Why is Kyndryl Holdings stock dropping? Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Why is kyndryl’s stock still down after its spinoff from IBM?
Kyndryl continues to face a tough reception in the public market following the company’s spinoff from IBM late last year. IBM (ticker: IBM) spun off Kyndryl (KD) as part of its plan to shed slower growing and lower margin assets, and to return the company to profitability.
Should you buy kyndryl stock for the yield?
While that is true, it turns out that all of the yield is coming from IBM—Kyndryl doesn’t intend to pay a dividend or to buy back stock, targeting any excess cash to invest in returning the company to growth. So anyone who owns IBM for the yield isn’t likely to keep their Kyndryl shares.
Is kyndryl’s turnaround still years away?
A Turnaround Is Still Years Away. Kyndryl continues to face a tough reception in the public market following the company’s spinoff from IBM late last year. IBM (ticker: IBM) spun off Kyndryl (KD) as part of its plan to shed slower growing and lower margin assets, and to return the company to profitability.
What does kyndryl do?
Kyndryl runs IT data centers and provides other related services for large technology buyers, competing with Indian technology outsourcing companies like Wipro and Tata Consultancy Services. Kyndryl...
What is the future of Kyndryl?
Kyndryl is working to expand the total addressable market dramatically from about $240 billion to about $510 billion by 2024 to take advantage of new opportunities and alliances around cloud, security, data, and automation, Schroeter said.
Is Kyndryl holdings a buy?
Kyndryl has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on no buy ratings, 1 hold rating, and no sell ratings.
Is KD a good stock to buy?
The financial health and growth prospects of KD, demonstrate its potential to perform inline with the market. It currently has a Growth Score of B. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.
Does IBM still own Kyndryl?
ARMONK, N.Y., November 3, 2021 - IBM (NYSE: IBM) announced today that it has completed the separation of its managed infrastructure services business to Kyndryl. Starting on November 4, 2021, Kyndryl will begin “regular way” trading on the New York Stock Exchange under the symbol “KD.”
Is IBM or Kyndryl better?
IBM might generate more stable growth without Kyndryl, but Kyndryl is also deeply undervalued as a standalone investment.
Is Kyndryl a good company?
Is Kyndryl a good company to work for? Kyndryl has an overall rating of 3.9 out of 5, based on over 890 reviews left anonymously by employees. 78% of employees would recommend working at Kyndryl to a friend and 62% have a positive outlook for the business. This rating has been stable over the past 12 months.
What will be the value of Kyndryl stock?
$12.92$ 12.94CloseChgChg %$12.920.645.21%
Will KD pay a dividend?
Does KYNDRYL HOLDINGS pay a dividend? No, KD has not paid a dividend within the past 12 months. What is KYNDRYL HOLDINGS's Dividend Payment Date? KYNDRYL HOLDINGS (NYSE: KD) does not pay a dividend.
What happens to IBM stock with Kyndryl?
On November 3, 2021 IBM distributed 1 Kyndryl share for every 5 of IBM. This represented 4.8% of the market cap of IBM at the time of the spinoff, for a business with 20% of the combined revenues. IBM retained 19.9% of Kyndryl stock in the transaction but intends to dispose of that stock over the next year.
Will Kyndryl have a dividend?
Does Kyndryl pay a dividend on its stock? No.
How many Kyndryl shares will IBM shareholders get?
IBM stockholders got one share of Kyndryl for every five IBM shares held.
Kyndryl Holdings (KD-N)
It's cheap, but how can it bring out value? They make billions in revenues. Wait. It has a very small market cap vs. its sales. Just wait.
Kyndryl Holdings (KD-N) Rating
Stockchase rating for Kyndryl Holdings is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.
Kyndryl Holdings (KD-N) Frequently Asked Questions
Kyndryl Holdings is a American stock, trading under the symbol KD-N on the New York Stock Exchange (KD). It is usually referred to as NYSE:KD or KD-N
What is Kyndryl's gross margin?
Kyndryl's gross margin expanded from 11.7% in 2018 to 12.8% in 2019, but declined to 11.4% in 2020 and contracted another 40 basis points year over year to 10.3% in the first half of 2021.
How much revenue does Kyndryl have in 2020?
Kyndryl's revenue declined 7% to $20.3 billion in 2019 and fell 5% to $19.4 billion in 2020. It ended 2020 with approximately 4,400 customers, down from 4,600 at the end of 2019.
How much of Kyndryl does IBM own?
IBM's current investors won't have a choice. After the spin-off concludes, IBM's shareholders will receive new shares equivalent to 80.1% of Kyndryl, while IBM will retain an equity stake of less than 19.9% and reclassify the business segment as a discontinued operation.
When will IBM spin off Kyndryl?
Last October, IBM ( NYSE:IBM) announced it would spin off the managed infrastructure services division of its Global Technology Services business by the end of 2021. In April, IBM named the upcoming spin-off Kyndryl but didn't disclose any additional details at the time.
Is IBM's forward yield going to be reduced?
That statement suggests IBM's current forward yield of 4.6% will be significantly reduced in the future. The "new" IBM will likely conserve its cash for fresh investments in the hybrid cloud and AI markets, while Kyndryl probably won't pay higher dividends until its losses narrow and its FCF growth stabilizes.
Is Kyndryl a good investment?
If Kyndryl generated more cash for buybacks or dividends, it could be a worthwhile investment -- but that isn't the case. In short, I can't see any compelling reasons to buy Kyndryl. It's a smart move for IBM, but it's a misleading deal for investors who believe Kyndryl will thrive on its own.
Is Kyndryl a competitor of Accenture?
By comparison, Kyndryl's larger IT services competitor Accenture ( NYSE:ACN) grew its revenue 5% in fiscal 2019, 3% in 2020, and 14% to $50.5 billion in 2021. That jarring comparison suggests that Kyndryl's declines weren't entirely caused by macro headwinds. IBM's focus on cutting Kyndryl's costs likely dulled its competitive edge, as well as its ability to keep pace with nimbler rivals like Accenture.
News & Analysis: Kyndryl Holdings, Inc
There is no available coverage of Kyndryl Holdings, Inc. at this time.
Environmental, Social, and Governance Rating
"A" score indicates excellent relative ESG performance and a high degree of transparency in reporting material ESG data publicly and privately. Scores range from AAA to D.
What is the partnership between Kyndryl and VMware?
Kyndryl (NYSE: KD) and VMware (NYSE: VM) today announced an expansion of the companies' strategic partnership focused on app modernization and multicloud services. This collaboration will enable customers to enhance their digital innovation and business transformation with enterprise control.
Is Microsoft a part of Kyndryl?
Kyndryl (NYSE: KD), the world's largest IT infrastructure services provider, and Microsoft Corp. (Nasdaq: MSFT), today announced a landmark global strategic partnership that will combine their market-leading capabilities in service of enterprise customers. The deal with Microsoft is Kyndryl's first since recently becoming an independent public company and provides incremental multi-billion dollar revenue opportunities for the two companies.
How much will KD's revenue decline over the next 3 years?
Revenue vs Market: KD's revenue is expected to decline over the next 3 years (-2.6% per year).
Is KD unprofitable?
PE vs Market: KD is unprofitable, so we can't compare its PE Ratio to the US market.
Is KD a high ROE?
High ROE: KD has a negative Return on Equity (-37.81%), as it is currently unprofitable.
Is KD a good value?
PB vs Industry: KD is good value based on its PB Ratio (0.9x) compared to the US IT industry average (5x).
Is KD management experienced?
Experienced Management: KD's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.
