Ceredex Value Advisors LLC Takes Position in KeyCorp $KEY

Key Points

• Ceredex Value Advisors acquired 1.14 million KeyCorp shares worth approximately $26.3 million, while institutional investors collectively own 79.69% of the company.
• KeyCorp reported quarterly earnings of $0.44 per share, beating estimates by $0.02, while revenue rose 6.7% year over year to $1.96 billion.
• The company authorized a $3 billion share repurchase program covering up to 13% of outstanding shares and declared a quarterly dividend of $0.205 per share, representing a 3.7% yield.

Ceredex Value Advisors LLC bought a new stake in shares of KeyCorp (NYSE:KEY - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 1,141,231 shares of the financial services provider's stock, valued at approximately $26,305,000. Ceredex Value Advisors LLC owned about 0.11% of KeyCorp as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently added to or reduced their stakes in KEY. Bank of Nova Scotia increased its holdings in shares of KeyCorp by 0.6% in the first quarter. Bank of Nova Scotia now owns 162,996,326 shares of the financial services provider's stock worth $3,268,076,000 after buying an additional 900,951 shares during the period. Vanguard Group Inc. boosted its holdings in KeyCorp by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 124,811,543 shares of the financial services provider's stock valued at $2,576,110,000 after acquiring an additional 1,192,323 shares during the period. BlackRock Inc. bought a new position in KeyCorp during the 2nd quarter worth approximately $2,039,113,000. Wellington Management Group LLP grew its position in KeyCorp by 90.2% during the 3rd quarter. Wellington Management Group LLP now owns 36,370,694 shares of the financial services provider's stock worth $679,768,000 after acquiring an additional 17,245,128 shares during the last quarter. Finally, Geode Capital Management LLC increased its stake in KeyCorp by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 23,983,690 shares of the financial services provider's stock worth $493,048,000 after purchasing an additional 115,968 shares during the period. Hedge funds and other institutional investors own 79.69% of the company's stock.

KeyCorp Price Performance

KEY opened at $21.88 on Friday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.83 and a current ratio of 0.84. The stock has a market capitalization of $23.35 billion, a PE ratio of 12.72, a price-to-earnings-growth ratio of 0.72 and a beta of 1.03. The stock's 50 day moving average price is $22.92 and its 200-day moving average price is $21.79. KeyCorp has a 52-week low of $16.47 and a 52-week high of $24.07.

KeyCorp (NYSE:KEY - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.42 by $0.02. The company had revenue of $1.96 billion during the quarter, compared to analyst estimates 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 last year, the firm posted $0.35 earnings per share. On average, equities research analysts predict that KeyCorp will post 1.83 EPS for the current year.

KeyCorp declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 13th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 13% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

KeyCorp Announces Dividend

The business also recently disclosed 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 is Tuesday, September 1st. This represents a $0.82 annualized dividend and a yield of 3.7%. KeyCorp's dividend payout ratio is 47.67%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. DA Davidson reiterated a "buy" rating and issued a $28.00 price objective on shares of KeyCorp in a research report on Wednesday, July 22nd. Wall Street Zen lowered shares of KeyCorp from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Weiss Ratings reissued a "buy (b)" rating on shares of KeyCorp in a research report on Friday, August 7th. UBS Group raised their price target on shares of KeyCorp from $25.00 to $27.00 and gave the stock a "buy" rating in a report on Tuesday, July 7th. Finally, Argus upgraded shares of KeyCorp to a "strong-buy" rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $49.14.

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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