Legal & General Group Plc Purchases New Stake in KeyCorp $KEY

Key Points

• Legal & General Group purchased 6.17 million KeyCorp shares worth approximately $142.2 million, giving it a 0.58% stake. Institutional investors collectively own 79.69% of the company.
• KeyCorp reported quarterly EPS of $0.44, beating estimates by $0.02, while revenue rose 6.7% year over year to $1.96 billion. The bank also authorized a $3 billion share-buyback program covering up to 13% of outstanding shares.
• KeyCorp declared a quarterly dividend of $0.205 per share, equivalent to an annualized $0.82 payout and a 3.7% yield. Analysts maintain a broadly positive outlook, with the stock carrying a “Moderate Buy” consensus rating.

Legal & General Group Plc purchased a new stake in shares of KeyCorp (NYSE:KEY - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 6,167,854 shares of the financial services provider's stock, valued at approximately $142,169,000. Legal & General Group Plc owned approximately 0.58% of KeyCorp at the end of the most recent quarter.

Other institutional investors have also recently bought and sold shares of the company. Bank of Nova Scotia acquired a new position in shares of KeyCorp during the second quarter valued at about $3,636,436,000. BlackRock Inc. bought a new stake in shares of KeyCorp during the second quarter worth about $2,039,113,000. Wellington Management Group LLP raised its holdings in shares of KeyCorp by 90.2% in 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. Deutsche Bank AG acquired a new stake in shares of KeyCorp in the 2nd quarter worth about $380,244,000. Finally, Norges Bank bought a new position in KeyCorp in the 4th quarter valued at about $262,688,000. Institutional investors and hedge funds own 79.69% of the company's stock.

KeyCorp Stock Down 0.3%

KeyCorp stock opened at $22.02 on Friday. KeyCorp has a fifty-two week low of $16.47 and a fifty-two week high of $24.07. The stock has a market cap of $23.49 billion, a PE ratio of 12.80, a price-to-earnings-growth ratio of 0.72 and a beta of 1.03. The firm's 50-day simple moving average is $22.86 and its 200 day simple moving average is $21.77. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.83 and a current ratio of 0.84.

KeyCorp (NYSE:KEY - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $0.44 EPS for the quarter, beating the consensus estimate of $0.42 by $0.02. The firm had revenue of $1.96 billion during the quarter, compared to analyst estimates of $1.97 billion. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The company's revenue for the quarter was up 6.7% on a year-over-year basis. During the same quarter last year, the business posted $0.35 EPS. Research analysts predict that KeyCorp will post 1.83 EPS for the current fiscal year.

KeyCorp announced that its Board of Directors has approved a share buyback program on Wednesday, May 13th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 13% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

KeyCorp Announces Dividend

The firm also recently announced 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. 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 dividend payout ratio is currently 47.67%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on KEY. UBS Group lifted their price target on KeyCorp from $25.00 to $27.00 and gave the company a "buy" rating in a research note on Tuesday, July 7th. Truist Financial increased their price objective on KeyCorp from $23.00 to $24.00 and gave the stock a "hold" rating in a research note on Wednesday, June 24th. Morgan Stanley raised their target price on KeyCorp from $24.00 to $25.00 and gave the company an "equal weight" rating in a report on Monday, June 29th. Wall Street Zen cut KeyCorp from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Finally, JPMorgan Chase & Co. upped their price target on KeyCorp from $22.50 to $24.50 and gave the stock a "neutral" rating in a report on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price 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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