Solas Capital Loads Up On Kyndryl With 407,000 Shares Bought
Key Points
Acquired 407,634 shares of Kyndryl (NYSE: KD) as of December 31, 2025; estimated trade size $10.83 million (based on quarterly average pricing).
Quarter-end position value increased by $10.83 million, reflecting the addition of new shares.
Position size change represents a 6.14% increase of 13F reportable assets under management as of December 31, 2025.
Post-trade stake as of December 31, 2025: 407,634 shares valued at $10.83 million.
New holding places KD outside the fund’s top five positions by value as of the filing.
On February 17, 2026, Solas Capital Management, LLC disclosed a new position in Kyndryl (NYSE:KD).
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, Solas Capital Management, LLC initiated a new position in Kyndryl, acquiring 407,634 shares. The estimated transaction value is $10.83 million, based on the average price during the quarter. This added stake resulted in a net position change of $10.83 million, reflecting the addition of new shares.
What else to know
- This is a new position for the fund and represents 6.14% of its 13F reportable assets under management following the filing.
- Top holdings as of the filing:
- NASDAQ: FENC: $19.72 million (11.2% of AUM)
- NASDAQ: EPSN: $16.45 million (9.3% of AUM)
- NYSE: SNDA: $14.86 million (8.4% of AUM)
- NASDAQ: ACOG: $12.79 million (7.3% of AUM)
- NYSE: MOH: $11.86 million (6.7% of AUM)
- As of February 17, 2026, shares of Kyndryl were priced at $13.59, down 67.5% over the past year, underperforming the S&P 500 by 79.4 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $15.12 billion |
| Net income (TTM) | $249.00 million |
| Market capitalization | $3.06 billion |
| Price (as of market close February 17, 2026) | $13.59 |
Company snapshot
- Offers IT infrastructure services, including cloud, core enterprise, application, data and AI, digital workplace, security, and network solutions.
- Generates revenue by providing managed technology solutions for enterprises.
- Serves large organizations across financial services, telecommunications, retail, automotive, and transportation sectors.
Kyndryl operates as a technology services company and IT infrastructure services provider worldwide, supporting mission-critical operations for large enterprises. With a workforce of approximately 80,000 employees, it leverages its scale and expertise to deliver complex, end-to-end technology solutions. Kyndryl has a broad service portfolio and the ability to manage and modernize clients' IT environments on a global scale.
What this transaction means for investors
On the surface, Solas Capital’s interest in the stock appeared understandable. Tech investors probably know Kyndryl best as IBM’s former managed infrastructure business. The stock had achieved record highs in early 2025 only to give back much of the gains it had earned in the previous year.
Unfortunately, it looks like Solas Capital should have exercised more patience. The tech stock has lost nearly half of its value since the beginning of the year. The company announced in February that it would delay its 10-Q filing amid an accounting review. This led to the resignation of the company’s CFO and general counsel.
Additionally, the company issued disappointing guidance as sales cycles became longer, data sovereignty issues arose, and ongoing challenges involving its partnership with its former parent company, IBM, came to the surface.
Investment funds occasionally run into such issues when investing in individual stocks, and this is why most investment experts tend to emphasize diversification.
Ultimately, investors will have to wait to see whether Solas Capital sold its Kyndryl stock, doubled down, or held its position. Nonetheless, whatever happens, the fund’s next 13-F filing will likely be one to watch.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines and Kyndryl. The Motley Fool has a disclosure policy.