Zacks Investment Research lowered shares of KeyCorp (NYSE:KEY) from a buy rating to a hold rating in a report released on Wednesday morning. They currently have $23.00 target price on the financial services provider’s stock.
According to Zacks, “KeyCorp’s shares have underperformed the industry over the past six months. Yet, the company has an impressive earnings surprise history, not lagging the Zacks Consensus Estimate in any of the trailing four quarters. The bank remains well positioned for growth in revenues given a rising rate environment and rise in loan and deposit balances. Improving credit quality and enhanced capital deployment activities are the other positives. However, persistently increasing expenses owing to investments in franchise and acquisitions are likely to hurt bottom-line growth. Also, the company’s significant exposure to risky loan portfolios is a matter of concern.”
Several other brokerages also recently issued reports on KEY. Morgan Stanley reiterated an overweight rating and issued a $23.00 price objective on shares of KeyCorp in a research report on Thursday, December 14th. Sanford C. Bernstein reiterated an outperform rating and issued a $22.00 price objective on shares of KeyCorp in a research report on Wednesday, September 27th. ValuEngine upgraded KeyCorp from a hold rating to a buy rating in a research report on Friday, December 1st. Oppenheimer reiterated a hold rating on shares of KeyCorp in a research report on Friday, October 20th. Finally, Keefe, Bruyette & Woods restated a buy rating and set a $21.50 target price on shares of KeyCorp in a research report on Thursday, December 14th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and sixteen have assigned a buy rating to the company’s stock. KeyCorp presently has an average rating of Buy and an average target price of $21.56.
KeyCorp (NYSE:KEY) last issued its quarterly earnings data on Thursday, October 19th. The financial services provider reported $0.35 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.35. KeyCorp had a return on equity of 10.35% and a net margin of 18.69%. The firm had revenue of $1.55 billion during the quarter, compared to the consensus estimate of $1.56 billion. During the same quarter in the previous year, the company posted $0.30 EPS. The business’s revenue for the quarter was up 13.7% compared to the same quarter last year. sell-side analysts forecast that KeyCorp will post 1.37 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, December 15th. Investors of record on Tuesday, November 28th were paid a dividend of $0.105 per share. The ex-dividend date of this dividend was Monday, November 27th. This is a boost from KeyCorp’s previous quarterly dividend of $0.10. This represents a $0.42 dividend on an annualized basis and a dividend yield of 2.07%. KeyCorp’s payout ratio is 36.52%.
In other KeyCorp news, Director Carlton L. Highsmith sold 7,600 shares of the business’s stock in a transaction dated Friday, November 3rd. The stock was sold at an average price of $18.39, for a total value of $139,764.00. Following the completion of the transaction, the director now directly owns 68,725 shares of the company’s stock, valued at $1,263,852.75. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Elizabeth R. Gile bought 1,374 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The stock was acquired at an average cost of $18.23 per share, with a total value of $25,048.02. Following the completion of the purchase, the director now owns 24,989 shares of the company’s stock, valued at approximately $455,549.47. The disclosure for this purchase can be found here. Over the last ninety days, insiders have sold 57,212 shares of company stock valued at $1,060,508. 0.65% of the stock is owned by insiders.
A number of large investors have recently bought and sold shares of KEY. Zions Bancorporation grew its stake in KeyCorp by 2,277.5% in the third quarter. Zions Bancorporation now owns 5,706 shares of the financial services provider’s stock valued at $107,000 after acquiring an additional 5,466 shares during the period. Bank of Nova Scotia Trust Co. acquired a new position in shares of KeyCorp during the third quarter worth about $132,000. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of KeyCorp during the third quarter worth about $145,000. Sun Life Financial INC boosted its position in shares of KeyCorp by 80,370.0% during the second quarter. Sun Life Financial INC now owns 8,047 shares of the financial services provider’s stock worth $151,000 after buying an additional 8,037 shares during the period. Finally, AllSquare Wealth Management LLC acquired a new position in shares of KeyCorp during the third quarter worth about $173,000. 80.91% of the stock is owned by hedge funds and other institutional investors.
KeyCorp is a bank holding company. The Company is a bank-based financial services company. The Company operates through its subsidiary, KeyBank National Association (KeyBank), which is engaged in providing banking services. Through KeyBank and other subsidiaries, it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate and institutional clients.
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