Momentum: MACD histogram at -0.215 (below zero) and still negative; contracting downside suggests selling pressure may be moderating, but no bullish reversal signal yet.
RSI: RSI_6 at 43.68 (neutral-to-weak), consistent with a soft tape rather than an oversold bounce setup.
Key levels: Pivot 23.172 is the near-term line in the sand; loss of pivot increases odds of a move toward S1 21.395. Upside resistance sits at R1 24.949 (then R2 26.047).
Pattern-based short-term bias: Similar-pattern stats imply ~50% chance of ~-0.96% next day and ~-0.9% next week, with a better 1-month skew (+3.59%).
Sentiment: Bearish/defensive near-term. Put volume is extremely elevated (Put/Call volume ratio 5.14), signaling hedging/speculation for downside.
Positioning: Open interest Put/Call ratio 1.17 shows more puts than calls outstanding (mildly bearish positioning).
Volatility: 30D IV 76.75 vs historical vol 38.54 (IV far above realized) with IV percentile 96.02—options are pricing a large move (consistent with imminent earnings).
Activity: Today’s options volume is ~282.54% of the 30D average, confirming heightened event-driven trading interest.
Technical Summary
Sell
7
Buy
4
Positive Catalysts
or signings improve, the stock can quickly reclaim resistance (24.95+).
Neutral/Negative Catalysts
Pre-earnings downside risk is elevated: options market is leaning heavily to puts and IV is extremely high.
Technical setup is still bearish (downtrend intact); failure to hold ~23.17 pivot raises risk toward ~21.40 support.
Latest quarter showed revenue contraction (-1.40% YoY) and sharp YoY declines in net income/EPS, which can keep investors skeptical until growth re-accelerates.
No supportive near-term news flow in the past week to counter the bearish technical/derivatives tone.
Financial Performance
Latest reported quarter: 2026/Q2.
Revenue: 3.721B, down -1.40% YoY (top-line still contracting).
Profitability: Net income 68M, down -258.14% YoY; EPS 0.29, down -252.63% YoY (material YoY deterioration in bottom line).
Offset: Gross margin improved to 21.53% (+8.35% YoY), suggesting better mix/cost control, but it has not translated into stronger net earnings growth yet.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent rating/target trend: Generally bullish ratings, but the most recent update was a modest target cut.
2026-02-03 (Guggenheim): Buy maintained; PT cut to $28 from $30 on risk that FY26 revenue growth outlook is trimmed due to deal ramp timing.
2026-01-27 (Scotiabank): Initiated Outperform with a $40 PT, citing sticky/recurring managed IT revenue mix and gross profit growth strength.
2025-11-25/26 (Guggenheim): Initiated/confirmed Buy with $30 PT, emphasizing improving profitability and better quality of signings.
Wall St pros: Recurring/sticky revenue mix; margin/profitability progress; multiple bullish targets above current price.
Wall St cons: Deal slippage/ramps could pressure near-term growth guidance; recent YoY earnings weakness adds execution risk.
Wall Street analysts forecast KD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KD is 33.25 USD with a low forecast of 28 USD and a high forecast of 40 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast KD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KD is 33.25 USD with a low forecast of 28 USD and a high forecast of 40 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 22.070
Low
28
Averages
33.25
High
40
Current: 22.070
Low
28
Averages
33.25
High
40
Guggenheim
Jonathan Lee
Buy
downgrade
$30 -> $28
AI Analysis
2026-02-03
New
Reason
Guggenheim
Jonathan Lee
Price Target
$30 -> $28
AI Analysis
2026-02-03
New
downgrade
Buy
Reason
Guggenheim analyst Jonathan Lee lowered the firm's price target on Kyndryl Holdings to $28 from $30 and keeps a Buy rating on the shares. The firm expects signings to improve following recent deal slippages, but sees risk that management trims its FY26 revenue growth outlook to reflect deal ramps, the analyst tells investors in a preview.
Scotiabank
NULL -> Outperform
initiated
$40
2026-01-27
Reason
Scotiabank
Price Target
$40
2026-01-27
initiated
NULL -> Outperform
Reason
Scotiabank assumed coverage of Kyndryl Holdings with an Outperform rating and $40 price target. The company's revenue mix, relative to peers, skews much more toward "highly recurring and sticky" managed IT with very little exposure to discretionary consulting revenue, the analyst tells investors in a research note. The firm is positive on Kyndryl's gross profit growth strength and highly recurring mix of revenue.
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