Commerce Bank Makes New $2.66 Million Investment in KeyCorp $KEY

Key Points

• Commerce Bank initiated a $2.66 million position in KeyCorp during the second quarter by purchasing 115,283 shares. Institutional investors and hedge funds collectively own 79.69% of the company.
• KeyCorp reported quarterly EPS of $0.44, exceeding estimates by $0.02, while revenue rose 6.7% year over year to $1.96 billion. The company also authorized a $3 billion share buyback and declared a quarterly dividend of $0.205 per share, yielding approximately 3.7%.
• Analyst sentiment is moderately positive, with a consensus rating of “Moderate Buy.” KeyCorp shares opened at $21.87, compared with a 52-week range of $16.47 to $24.07.

Commerce Bank bought a new position in KeyCorp (NYSE:KEY - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 115,283 shares of the financial services provider's stock, valued at approximately $2,657,000.

A number of other institutional investors have also modified their holdings of KEY. Brighton Jones LLC bought a new position in shares of KeyCorp during the fourth quarter worth about $476,000. Woodline Partners LP increased its holdings in KeyCorp by 41.4% in the first quarter. Woodline Partners LP now owns 84,156 shares of the financial services provider's stock valued at $1,346,000 after buying an additional 24,627 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in KeyCorp by 58.0% in the second quarter. EverSource Wealth Advisors LLC now owns 5,148 shares of the financial services provider's stock valued at $90,000 after buying an additional 1,890 shares during the last quarter. Cresset Asset Management LLC raised its stake in KeyCorp by 6.5% during the second quarter. Cresset Asset Management LLC now owns 15,097 shares of the financial services provider's stock valued at $263,000 after buying an additional 926 shares in the last quarter. Finally, Federated Hermes Inc. acquired a new stake in KeyCorp during the second quarter valued at approximately $186,000. Institutional investors and hedge funds own 79.69% of the company's stock.

KeyCorp Price Performance

KEY opened at $21.87 on Tuesday. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 0.63. The company's 50-day moving average price is $22.90 and its 200 day moving average price is $21.79. The firm has a market cap of $23.34 billion, a price-to-earnings ratio of 12.72, a price-to-earnings-growth ratio of 0.72 and a beta of 1.03. KeyCorp has a fifty-two week low of $16.47 and a fifty-two 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.02. KeyCorp had a return on equity of 11.23% and a net margin of 17.83%.The business had revenue of $1.96 billion for the quarter, compared to the consensus estimate of $1.97 billion. During the same quarter last year, the business posted $0.35 EPS. The business's revenue was up 6.7% on a year-over-year basis. As a group, sell-side analysts expect that KeyCorp will post 1.83 earnings per share for the current year.

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

KeyCorp Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued 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 dividend yield of 3.7%. KeyCorp's payout ratio is 47.67%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on KEY. Argus raised KeyCorp to a "strong-buy" rating in a report on Wednesday, July 29th. JPMorgan Chase & Co. boosted their price target on KeyCorp from $22.50 to $24.50 and gave the company a "neutral" rating in a report on Monday, July 6th. Weiss Ratings reissued a "buy (b)" rating on shares of KeyCorp in a research report on Friday, August 7th. Robert W. Baird raised their price objective on KeyCorp from $22.00 to $23.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Finally, Susquehanna lifted their price objective on shares of KeyCorp from $300.00 to $415.00 and gave the stock a "positive" rating in a report on Monday, May 18th. One equities 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. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $49.14.

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.

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