KeyCorp $KEY Shares Acquired by Capital World Investors

Key Points

• Capital World Investors increased its KeyCorp stake by 1.1% in the fourth quarter, bringing its holdings to 21.0 million shares valued at about $434.0 million. Institutional investors overall own 79.69% of the company.
• KeyCorp reported better-than-expected quarterly results, with EPS of $0.44 versus $0.41 expected and revenue of $1.95 billion, up 10.2% year over year. Analysts still see the stock as a Moderate Buy with an average price target of $42.78.
• The company also approved a $3.0 billion share repurchase program and declared a quarterly dividend of $0.205 per share, implying an annualized yield of 3.8%. Insider Angela G. Mago also sold 22,826 shares in May.

Capital World Investors grew its holdings in KeyCorp (NYSE:KEY - Free Report) by 1.1% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 21,027,471 shares of the financial services provider's stock after purchasing an additional 238,514 shares during the period. Capital World Investors owned approximately 1.92% of KeyCorp worth $434,007,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also modified their holdings of the company. BNP PARIBAS ASSET MANAGEMENT Holding S.A. lifted its stake in shares of KeyCorp by 2.7% in the 3rd quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 2,013,977 shares of the financial services provider's stock valued at $37,641,000 after purchasing an additional 53,682 shares during the last quarter. Synovus Financial Corp purchased a new stake in shares of KeyCorp in the 3rd quarter valued at $2,253,000. M&T Bank Corp raised its holdings in shares of KeyCorp by 5,317.0% in the 4th quarter. M&T Bank Corp now owns 1,350,519 shares of the financial services provider's stock valued at $27,875,000 after buying an additional 1,325,588 shares during the period. Xponance Inc. raised its holdings in shares of KeyCorp by 31.0% in the 3rd quarter. Xponance Inc. now owns 471,949 shares of the financial services provider's stock valued at $8,821,000 after buying an additional 111,753 shares during the period. Finally, Caisse Des Depots ET Consignations purchased a new stake in shares of KeyCorp in the 3rd quarter valued at $1,294,000. Institutional investors and hedge funds own 79.69% of the company's stock.

Insiders Place Their Bets

In other KeyCorp news, insider Angela G. Mago sold 22,826 shares of the company's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $21.66, for a total transaction of $494,411.16. Following the sale, the insider owned 281,564 shares in the company, valued at $6,098,676.24. This represents a 7.50% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.56% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several research firms recently issued reports on KEY. Jefferies Financial Group boosted their price objective on KeyCorp from $21.00 to $23.00 and gave the company a "hold" rating in a report on Friday, April 17th. The Goldman Sachs Group boosted their price objective on KeyCorp from $25.00 to $26.00 and gave the company a "buy" rating in a report on Friday, April 17th. DA Davidson boosted their price objective on KeyCorp from $26.00 to $27.00 and gave the company a "buy" rating in a report on Monday, May 4th. Evercore reiterated an "outperform" rating on shares of KeyCorp in a report on Tuesday, April 21st. Finally, Morgan Stanley cut their price objective on KeyCorp from $26.00 to $24.00 and set an "equal weight" rating on the stock in a report on Tuesday, March 31st. Thirteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $42.78.

KeyCorp Price Performance

Shares of NYSE KEY opened at $21.81 on Monday. The stock's 50-day moving average is $21.30 and its two-hundred day moving average is $20.81. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.83 and a quick ratio of 0.83. KeyCorp has a 1-year low of $15.59 and a 1-year high of $23.34. The company has a market cap of $23.64 billion, a price-to-earnings ratio of 13.38, a price-to-earnings-growth ratio of 0.69 and a beta of 1.03.

KeyCorp (NYSE:KEY - Get Free Report) last issued its quarterly earnings results on Thursday, April 16th. The financial services provider reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.03. KeyCorp had a return on equity of 10.80% and a net margin of 17.03%.The company had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $1.93 billion. During the same quarter in the prior year, the business earned $0.38 EPS. KeyCorp's revenue was up 10.2% on a year-over-year basis. Analysts forecast that KeyCorp will post 1.83 EPS for the current fiscal year.

KeyCorp declared that its board has approved a share repurchase plan on Wednesday, May 13th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 13% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its stock is undervalued.

KeyCorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Tuesday, June 2nd will be issued a dividend of $0.205 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $0.82 annualized dividend and a yield of 3.8%. KeyCorp's dividend payout ratio is 50.31%.

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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