Kyndryl (KY)/CFO Exit and SEC Accounting Review Drive 55% Drop

Kyndryl Holdings Inc. (KY) fell 55% on Monday after announcing leadership exits, including CFO David Wyshner and General Counsel Edward Sebold, and disclosed a voluntary review of its accounting and internal controls by the SEC’s Division of Enforcement. The company said it does not expect financial statements to be materially impacted but will delay the filing of its fourth-quarter report, citing material weaknesses in controls and disclosures. Third-quarter results missed expectations, and the company lowered full-year guidance for adjusted EBITDA and adjusted pretax profit. JPMorgan downgraded the stock to underweight and cut its price target to $16 from $40. Interim leadership was named: Harsh Chugh as CFO, Mark Ringes as General Counsel, and Bhavna Doegar as Corporate Controller.