Jupiter Topco LLC Makes New $2.38 Million Investment in KeyCorp $KEY

Key Points

• Jupiter Topco LLC acquired 103,215 KeyCorp shares in the second quarter, valued at approximately $2.38 million. Institutional investors and hedge funds collectively own 79.69% of the company.
• KeyCorp reported quarterly earnings of $0.44 per share, beating estimates of $0.42, while revenue rose 6.7% year over year to $1.96 billion.
• The company declared a quarterly dividend of $0.205 per share, representing a 3.8% yield, and authorized a $3 billion share-repurchase program covering up to 13% of outstanding shares. Analysts maintain a “Moderate Buy” consensus rating.

Jupiter Topco LLC acquired a new stake in KeyCorp (NYSE:KEY - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 103,215 shares of the financial services provider's stock, valued at approximately $2,381,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Ancora Advisors LLC acquired a new stake in KeyCorp in the 2nd quarter worth about $1,598,000. Primecap Management Co. CA acquired a new position in shares of KeyCorp during the 2nd quarter valued at about $39,172,000. Canada Pension Plan Investment Board purchased a new position in shares of KeyCorp during the 2nd quarter worth about $10,718,000. Legal & General Group Plc purchased a new stake in KeyCorp in the second quarter valued at approximately $142,169,000. Finally, The Manufacturers Life Insurance Company acquired a new position in KeyCorp during the second quarter worth approximately $28,709,000. 79.69% of the stock is currently owned by institutional investors and hedge funds.

KeyCorp Stock Up 2.8%

Shares of NYSE:KEY opened at $21.81 on Thursday. The company has a market capitalization of $23.28 billion, a price-to-earnings ratio of 12.68, a price-to-earnings-growth ratio of 0.80 and a beta of 1.02. The company has a 50 day moving average of $22.76 and a two-hundred day moving average of $21.74. KeyCorp has a 52-week low of $16.47 and a 52-week high of $24.07. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 0.63.

KeyCorp (NYSE:KEY - Get Free Report) last posted its 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 business had revenue of $1.96 billion for the quarter, compared to analysts' expectations of $1.97 billion. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The business's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.35 earnings per share. As a group, analysts forecast that KeyCorp will post 1.83 earnings per share for the current fiscal year.

KeyCorp Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid 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 3.8%. KeyCorp's payout ratio is 47.67%.

KeyCorp declared that its board has authorized a share repurchase 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 often an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

KEY has been the topic of a number of recent analyst reports. UBS Group increased their price target on shares of KeyCorp from $25.00 to $27.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. Keefe, Bruyette & Woods boosted their price objective on shares of KeyCorp from $25.00 to $26.00 and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. DA Davidson restated a "buy" rating and set a $28.00 price objective on shares of KeyCorp in a report on Wednesday, July 22nd. Weiss Ratings reiterated a "buy (b)" rating on shares of KeyCorp in a report on Friday, August 7th. Finally, Wells Fargo & Company lifted their target price on KeyCorp from $24.00 to $27.00 and gave the company an "overweight" rating in a report on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target 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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