Assenagon Asset Management S.A. Reduces Stake in KeyCorp $KEY

Key Points

• Assenagon Asset Management reduced its KeyCorp stake by 45.6% in the second quarter, selling 1.1 million shares and retaining 1.32 million shares valued at approximately $30.4 million. Institutional investors collectively own 79.69% of the company.
• Analyst sentiment remains favorable, with KeyCorp receiving a consensus “Moderate Buy” rating and an average price target of $49.14, despite one recent downgrade to “sell.”
• KeyCorp exceeded quarterly earnings expectations with EPS of $0.44 versus $0.42 estimated, while revenue rose 6.7% year over year. The company also declared a $0.205 quarterly dividend and authorized a $3 billion share-repurchase program.

Assenagon Asset Management S.A. cut its position in shares of KeyCorp (NYSE:KEY - Free Report) by 45.6% in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 1,319,880 shares of the financial services provider's stock after selling 1,106,819 shares during the quarter. Assenagon Asset Management S.A. owned 0.12% of KeyCorp worth $30,423,000 as of its most recent filing with the SEC.

A number of other institutional investors also recently bought and sold shares of the company. M&T Bank Corp increased its holdings in KeyCorp by 5,317.0% during the 4th quarter. M&T Bank Corp now owns 1,350,519 shares of the financial services provider's stock valued at $27,875,000 after acquiring an additional 1,325,588 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of KeyCorp by 14.8% in the fourth quarter. Bank of New York Mellon Corp now owns 5,602,637 shares of the financial services provider's stock valued at $115,638,000 after purchasing an additional 721,421 shares in the last quarter. Jefferies Financial Group Inc. lifted its holdings in shares of KeyCorp by 62.1% in the fourth quarter. Jefferies Financial Group Inc. now owns 220,523 shares of the financial services provider's stock valued at $4,552,000 after purchasing an additional 84,497 shares in the last quarter. Mattson Financial Services LLC grew its position in shares of KeyCorp by 298.1% in the fourth quarter. Mattson Financial Services LLC now owns 75,771 shares of the financial services provider's stock valued at $1,564,000 after purchasing an additional 56,736 shares during the last quarter. Finally, Concurrent Investment Advisors LLC acquired a new stake in shares of KeyCorp in the fourth quarter valued at approximately $3,826,000. 79.69% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on KEY. Truist Financial raised their price objective on shares of KeyCorp from $23.00 to $24.00 and gave the stock a "hold" rating in a research note on Wednesday, June 24th. Evercore reiterated an "outperform" rating on shares of KeyCorp in a report on Tuesday, April 21st. The Goldman Sachs Group raised their price target on KeyCorp from $25.00 to $26.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Susquehanna boosted their price target on KeyCorp from $300.00 to $415.00 and gave the stock a "positive" rating in a report on Monday, May 18th. Finally, Wall Street Zen lowered KeyCorp from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $49.14.

KeyCorp Stock Performance

Shares of KEY opened at $22.72 on Friday. KeyCorp has a 1 year low of $16.47 and a 1 year high of $24.07. The company's 50 day simple moving average is $22.73 and its 200 day simple moving average is $21.70. The company has a market capitalization of $24.25 billion, a price-to-earnings ratio of 13.21, a PEG ratio of 0.74 and a beta of 1.03. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.83 and a current ratio of 0.84.

KeyCorp (NYSE:KEY - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $0.44 EPS for the quarter, beating the consensus estimate of $0.42 by $0.02. The company had revenue of $1.95 billion during the quarter, compared to analysts' expectations of $1.97 billion. KeyCorp had a return on equity of 11.23% and a net margin of 17.83%.The firm's revenue was up 6.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.35 EPS. On average, sell-side analysts predict that KeyCorp will post 1.83 EPS for the current year.

KeyCorp Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a dividend of $0.205 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.82 annualized dividend and a yield of 3.6%. KeyCorp's dividend payout ratio is 47.67%.

KeyCorp announced that its board has approved a share repurchase program on Wednesday, May 13th that permits the company to buyback $3.00 billion in shares. This buyback authorization permits the financial services provider to purchase up to 13% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

KeyCorp Company Profile

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.

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