Bank of New York Mellon Corp Invests $122.76 Million in KeyCorp $KEY

Key Points

• Bank of New York Mellon acquired 5.33 million KeyCorp shares worth approximately $122.8 million, giving it a 0.49% stake. Institutional investors and hedge funds collectively own 79.69% of the company.
• KeyCorp reported quarterly EPS of $0.44, exceeding analysts’ $0.42 estimate, while revenue rose 6.7% year over year to $1.96 billion. Analysts expect the company to post $1.83 in EPS for the full year.
• KeyCorp authorized a $3 billion share-repurchase program covering up to 13% of its shares and pays an annualized dividend of $0.82, yielding about 3.7%. Wall Street’s overall rating is “Moderate Buy,” with several firms recently raising their price targets.

Bank of New York Mellon Corp acquired a new stake in shares of KeyCorp (NYSE:KEY - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 5,325,948 shares of the financial services provider's stock, valued at approximately $122,763,000. Bank of New York Mellon Corp owned about 0.49% of KeyCorp at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of KEY. Focus Partners Advisor Solutions LLC acquired a new stake in shares of KeyCorp during the 2nd quarter valued at about $862,000. State of Wyoming acquired a new position in KeyCorp in the second quarter worth approximately $236,000. GSA Capital Partners LLP bought a new position in KeyCorp during the second quarter valued at approximately $286,000. Maridea Wealth Management LLC bought a new position in KeyCorp during the second quarter valued at approximately $279,000. Finally, Summit Global Investments bought a new position in KeyCorp during the second quarter valued at approximately $775,000. Institutional investors and hedge funds own 79.69% of the company's stock.

KeyCorp Stock Performance

Shares of KEY opened at $21.89 on Monday. The company has a market capitalization of $23.36 billion, a PE ratio of 12.73, a price-to-earnings-growth ratio of 0.72 and a beta of 1.03. 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 $22.91 and its 200 day moving average price is $21.79.

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. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The company had revenue of $1.96 billion during the quarter, compared to analysts' expectations of $1.97 billion. During the same period in the prior year, the company earned $0.35 earnings per share. The business's quarterly revenue was up 6.7% compared to the same quarter last year. As a group, analysts expect that KeyCorp will post 1.83 earnings per share for the current year.

KeyCorp declared that its board has approved a stock buyback plan on Wednesday, May 13th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 13% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

KeyCorp Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.205 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.82 dividend on an annualized basis and a yield of 3.7%. KeyCorp's dividend payout ratio (DPR) is 47.67%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on KEY. Keefe, Bruyette & Woods raised their price target on shares of KeyCorp from $25.00 to $26.00 and gave the company an "outperform" rating in a report on Wednesday, July 22nd. DA Davidson reiterated a "buy" rating and issued a $28.00 price objective on shares of KeyCorp in a report on Wednesday, July 22nd. Weiss Ratings reissued a "buy (b)" rating on shares of KeyCorp in a research report on Friday, August 7th. Robert W. Baird raised their target price on KeyCorp from $22.00 to $23.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Finally, Stephens initiated coverage on KeyCorp in a research report on Monday, June 15th. They issued an "overweight" rating and a $26.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $49.14.

KeyCorp 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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