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Kyndryl Holdings, Inc. (KD) Stock Analysis

Falling Knife setup

SellModerate Confidence

Technology · Information Technology Services

Sell if holding. Engine safety override at $11.72: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: High short interest: 15%; Below-average business quality; Negative price momentum.

Kyndryl Holdings, Inc. ("we," "Kyndryl" or the "Company") is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT... Read more

$11.72+9.2% A.UpsideScore 5.0/10#27 of 34 Information Technology Services
QualityF-score4 / 9FCF yield
Stop $10.89Target $12.79(analyst − 13%)A.R:R 0.7:1
Analyst target$14.70+25.4%5 analysts
$12.79our TP
$11.72price
$14.70mean
$17

Sell if holding. Engine safety override at $11.72: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: High short interest: 15%; Below-average business quality; Negative price momentum. Chart setup: Death cross, below all MAs, RSI 35, MACD bearish. Score 5.0/10, moderate confidence.

Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 77d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.

Recent Developments — Kyndryl Holdings, Inc.

Material events (past 30 days)

  • May 6, 2026 MEDIUM Item 2.05: Costs Associated with Exit or Disposal Activities** ​ On May 5, 2026, the Company approved, as part of its ongoing efforts to further streamline operations, workforce rebalancing actions designed to optimize and support the Company's financial and operational efficiency.

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
No bull case signals
Risks
Quality below floor (2.6 < 4.0)

Key Metrics

P/E (TTM)13.8
P/E (Fwd)4.4
Mkt Cap$2.6B
EV/EBITDA3.8
Profit Mgn1.3%
ROE15.0%
Rev Growth-0.8%
Beta1.79
DividendNone
Rating analysts16

Quality Signals

Piotroski F4/9

Options Flow

P/C0.13bullish
IV61%elevated
Max Pain$31+164.5% vs spot

Material Events(8-K, last 90d)

  • 2026-05-06Item 2.05MEDIUM
    Costs Associated with Exit or Disposal Activities** ​ On May 5, 2026, the Company approved, as part of its ongoing efforts to further streamline operations, workforce rebalancing actions designed to optimize and support the Company's financial and operational efficiency.
    SEC filing →
  • 2026-02-17Item 5.02MEDIUM
    KYNDRYL HOLDINGS, INC. | | | By: | /s/ Evan Barth | | Name: Evan Barth | | Title: Vice President, Associate General Counsel and Assistant [... truncated]
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

4 floor-breakers·1 ceiling hit

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.4
Net Margin
0.7
Operating Margin
1.8
Moat
3.6
Piotroski F
4.4
Roe
5.0
No competitive moatQuality concerns

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.0
Erm
2.0
Earnings History
3.3
Earnings Timing
5.0
Earnings concerns: 2B/2M

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
2.4
Quality Rank
3.4
Value Rank
7.4

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Ma Position
1.0
Volume
3.1
Rsi
3.5
Obv
10.0
Volume accumulation (rising OBV)Below 200-MA, MA slope -15.1%/30d — confirmed downtrend
GatesMomentum 3.5<4.5A.R:R 0.7 < 1.5@spotDeath cross (50MA < 200MA)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 77d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Aggressive
RSI
35 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $10.88Resistance $14.94

Price Targets

$11
$13
A.Upside+9.1%
A.R:R0.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (2.6 < 4.0)
! Momentum score 3.5/10 — below 4.5 minimum
! Reward/Risk 0.7:1 at current price — below 1.5:1 minimum

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-04 (77d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is KD stock a buy right now?

Sell if holding. Engine safety override at $11.72: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: High short interest: 15%; Below-average business quality; Negative price momentum. Chart setup: Death cross, below all MAs, RSI 35, MACD bearish. Prior stop was $10.89. Score 5.0/10, moderate confidence.

What is the KD stock price target?

Take-profit target: $12.79 (+9.2% upside). Prior stop was $10.89. Stop-loss: $10.89.

What are the risks of investing in KD?

Quality below floor (2.6 < 4.0).

Is KD overvalued or undervalued?

Kyndryl Holdings, Inc. trades at a P/E of 13.8 (forward 4.4). TrendMatrix value score: 8.9/10. Verdict: Sell.

What do analysts say about KD?

16 analysts cover KD with a consensus score of 3.7/5. Average price target: $15.

What does Kyndryl Holdings, Inc. do?Kyndryl Holdings, Inc. ("we," "Kyndryl" or the "Company") is a leading provider of mission-critical enterprise...

Kyndryl Holdings, Inc. ("we," "Kyndryl" or the "Company") is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day.

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