Argus Upgrades KeyCorp (NYSE:KEY) to Strong-Buy

Key Points

• Argus upgraded KeyCorp to “strong buy,” while other analysts generally maintain buy or outperform ratings; MarketBeat lists a consensus rating of “moderate buy.”
• KeyCorp reported quarterly EPS of $0.44, beating estimates of $0.42, though revenue of $1.96 billion was slightly below expectations; revenue rose 6.7% year over year.
• The board approved a $3 billion share-repurchase plan, allowing the company to buy back up to 13% of its outstanding shares, while institutional investors own approximately 79.69% of the stock.

KeyCorp (NYSE:KEY - Get Free Report) was upgraded by research analysts at Argus to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. Evercore reissued an "outperform" rating on shares of KeyCorp in a research report on Tuesday, April 21st. The Goldman Sachs Group raised their target price on KeyCorp from $25.00 to $26.00 and gave the company a "buy" rating in a report on Friday, April 17th. UBS Group lifted their price target on KeyCorp from $25.00 to $27.00 and gave the stock a "buy" rating in a research report on Tuesday, July 7th. Royal Bank Of Canada lifted their price target on KeyCorp from $24.00 to $25.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 22nd. Finally, Robert W. Baird upped their price target on KeyCorp from $22.00 to $23.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $49.14.

KeyCorp Stock Performance

Shares of KEY opened at $22.61 on Wednesday. The company has a market capitalization of $24.41 billion, a PE ratio of 13.15, a price-to-earnings-growth ratio of 0.73 and a beta of 1.02. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.84 and a quick ratio of 0.83. KeyCorp has a one year low of $16.47 and a one year high of $24.07. The company's fifty day moving average price is $22.57 and its 200 day moving average price is $21.63.

KeyCorp (NYSE:KEY - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.42 by $0.02. The company had revenue of $1.96 billion during the quarter, compared to analysts' expectations of $1.97 billion. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The business's quarterly revenue was up 6.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.35 earnings per share. As a group, analysts expect that KeyCorp will post 1.83 earnings per share for the current year.

KeyCorp declared that its Board of Directors has approved a share repurchase plan on Wednesday, May 13th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the financial services provider to purchase up to 13% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other KeyCorp news, insider Angela G. Mago sold 22,826 shares of KeyCorp stock in a transaction on Friday, May 8th. The shares were sold at an average price of $21.66, for a total transaction of $494,411.16. Following the sale, the insider owned 281,564 shares in the company, valued at $6,098,676.24. The trade was a 7.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.56% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On KeyCorp

A number of hedge funds have recently made changes to their positions in the business. DV Equities LLC acquired a new stake in shares of KeyCorp during the 4th quarter valued at about $27,000. Maseco LLP acquired a new position in KeyCorp in the fourth quarter worth about $27,000. Smithfield Trust Co bought a new position in KeyCorp during the fourth quarter worth about $31,000. Kelleher Financial Advisors bought a new position in KeyCorp during the third quarter worth about $32,000. Finally, Richardson Financial Services Inc. bought a new position in KeyCorp during the fourth quarter worth about $38,000. Institutional investors and hedge funds own 79.69% of the company's stock.

About KeyCorp

KeyCorp is a bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank. It provides a broad range of banking and financial services to individual consumers, small businesses, middle-market companies and large corporations. KeyBank's offerings span traditional deposit and lending products as well as more specialized financial solutions designed for commercial and institutional clients.

The company's product and service mix includes retail banking products such as checking and savings accounts, consumer and residential mortgage lending, and auto financing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.