Fifth Third Bancorp Raises Stock Holdings in KeyCorp $KEY

Key Points

• Fifth Third Bancorp boosted its KeyCorp stake by 173.7% in the first quarter, ending with 229,967 shares valued at about $4.61 million.
• KeyCorp reported stronger-than-expected quarterly results, posting $0.44 EPS on revenue of $1.95 billion, both ahead of analyst estimates.
• The bank also announced a $3.0 billion share buyback and a quarterly dividend of $0.205 per share, while analysts currently view the stock as a Moderate Buy with a consensus price target of $47.34.

Fifth Third Bancorp increased its stake in KeyCorp (NYSE:KEY - Free Report) by 173.7% in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 229,967 shares of the financial services provider's stock after acquiring an additional 145,950 shares during the quarter. Fifth Third Bancorp's holdings in KeyCorp were worth $4,611,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in KEY. MCF Advisors LLC lifted its stake in KeyCorp by 31.6% in the 4th quarter. MCF Advisors LLC now owns 1,898 shares of the financial services provider's stock worth $39,000 after purchasing an additional 456 shares in the last quarter. Prime Capital Investment Advisors LLC increased its holdings in shares of KeyCorp by 1.7% in the fourth quarter. Prime Capital Investment Advisors LLC now owns 28,498 shares of the financial services provider's stock valued at $588,000 after purchasing an additional 486 shares during the last quarter. Harbour Investments Inc. lifted its position in KeyCorp by 19.0% during the fourth quarter. Harbour Investments Inc. now owns 3,180 shares of the financial services provider's stock worth $66,000 after buying an additional 508 shares in the last quarter. Centennial Wealth Advisory LLC boosted its stake in KeyCorp by 1.2% during the fourth quarter. Centennial Wealth Advisory LLC now owns 44,986 shares of the financial services provider's stock worth $929,000 after buying an additional 524 shares during the last quarter. Finally, CoreCap Advisors LLC boosted its stake in KeyCorp by 4.6% during the fourth quarter. CoreCap Advisors LLC now owns 12,198 shares of the financial services provider's stock worth $252,000 after buying an additional 539 shares during the last quarter. Institutional investors and hedge funds own 79.69% of the company's stock.

KeyCorp Stock Performance

NYSE KEY opened at $23.57 on Friday. The stock has a fifty day simple moving average of $22.29 and a 200-day simple moving average of $21.52. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.62. The stock has a market cap of $25.44 billion, a PE ratio of 14.46, a P/E/G ratio of 0.75 and a beta of 1.02. KeyCorp has a twelve month low of $16.47 and a twelve month high of $24.07.

KeyCorp (NYSE:KEY - Get Free Report) last posted its earnings results on Thursday, April 16th. The financial services provider reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.41 by $0.03. The company had revenue of $1.95 billion for the quarter, compared to analysts' expectations of $1.93 billion. KeyCorp had a net margin of 17.03% and a return on equity of 10.80%. KeyCorp's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.38 earnings per share. Equities analysts anticipate that KeyCorp will post 1.82 earnings per share for the current year.

KeyCorp Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a $0.205 dividend. This represents a $0.82 annualized dividend and a dividend yield of 3.5%. The ex-dividend date is Tuesday, September 1st. KeyCorp's dividend payout ratio is currently 50.31%.

KeyCorp announced that its Board of Directors has authorized a share buyback 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 shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

KEY has been the subject of a number of recent research reports. TD Cowen reaffirmed a "buy" rating and issued a $68.00 target price on shares of KeyCorp in a research note on Tuesday, June 23rd. Wall Street Zen lowered shares of KeyCorp from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Robert W. Baird raised their price objective on shares of KeyCorp from $19.00 to $22.00 and gave the stock a "neutral" rating in a research report on Friday, April 17th. Evercore reaffirmed an "outperform" rating on shares of KeyCorp in a research note on Tuesday, April 21st. Finally, Susquehanna boosted their target price on shares of KeyCorp from $300.00 to $415.00 and gave the company a "positive" rating in a report on Monday, May 18th. Thirteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $47.34.

Insider Activity at KeyCorp

In related news, insider Angela G. Mago sold 22,826 shares of the stock in a transaction that occurred 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 completion of the transaction, the insider owned 281,564 shares of the company's stock, valued at approximately $6,098,676.24. This trade represents a 7.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.56% of the company's stock.

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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