Parnassus Investments LLC Makes New $36.32 Million Investment in KeyCorp $KEY

Key Points

• Parnassus Investments LLC acquired a new stake in KeyCorp, purchasing 2,271,400 shares valued at approximately $36.32 million, thereby owning 0.21% of the company.
• KeyCorp reported quarterly earnings of $0.35 per share, exceeding analyst estimates, with a year-over-year revenue increase of 20.6%.
• The company declared a quarterly dividend of $0.205, representing a dividend yield of 4.2%, with a high payout ratio indicating significant investment in stock returns.

Parnassus Investments LLC acquired a new position in shares of KeyCorp (NYSE:KEY - Free Report) in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 2,271,400 shares of the financial services provider's stock, valued at approximately $36,320,000. Parnassus Investments LLC owned about 0.21% of KeyCorp at the end of the most recent reporting period.

A number of other institutional investors also recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in KeyCorp by 7.2% during the 1st quarter. Vanguard Group Inc. now owns 125,345,385 shares of the financial services provider's stock worth $2,004,273,000 after acquiring an additional 8,412,625 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of KeyCorp by 40.4% in the first quarter. Price T Rowe Associates Inc. MD now owns 50,954,013 shares of the financial services provider's stock valued at $814,756,000 after buying an additional 14,651,281 shares during the period. Fuller & Thaler Asset Management Inc. lifted its holdings in shares of KeyCorp by 12.2% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 30,511,720 shares of the financial services provider's stock valued at $487,882,000 after buying an additional 3,327,972 shares during the period. Invesco Ltd. lifted its holdings in shares of KeyCorp by 19.5% in the first quarter. Invesco Ltd. now owns 20,623,929 shares of the financial services provider's stock valued at $329,777,000 after buying an additional 3,363,421 shares during the period. Finally, Northern Trust Corp lifted its holdings in shares of KeyCorp by 14.4% in the fourth quarter. Northern Trust Corp now owns 11,240,159 shares of the financial services provider's stock valued at $192,656,000 after buying an additional 1,417,297 shares during the period. Institutional investors and hedge funds own 79.69% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently weighed in on KEY. DA Davidson upped their price objective on KeyCorp from $19.00 to $21.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Bank of America upped their price objective on KeyCorp from $18.00 to $20.00 and gave the company a "buy" rating in a report on Monday, June 16th. Citigroup restated a "neutral" rating and issued a $20.00 price objective (up previously from $19.00) on shares of KeyCorp in a report on Thursday, July 24th. Wells Fargo & Company upped their price objective on KeyCorp from $18.00 to $20.00 and gave the company an "overweight" rating in a report on Tuesday, July 8th. Finally, Robert W. Baird downgraded KeyCorp from an "outperform" rating to a "neutral" rating and set a $18.00 target price for the company. in a report on Wednesday, July 2nd. Ten equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $19.39.

Insiders Place Their Bets

In other news, CEO Christopher M. Gorman sold 112,149 shares of the company's stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $18.86, for a total value of $2,115,130.14. Following the transaction, the chief executive officer directly owned 619,895 shares of the company's stock, valued at approximately $11,691,219.70. This represents a 15.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Trina M. Evans sold 17,000 shares of KeyCorp stock in a transaction on Thursday, July 24th. The shares were sold at an average price of $18.67, for a total value of $317,390.00. Following the sale, the director directly owned 82,719 shares of the company's stock, valued at approximately $1,544,363.73. The trade was a 17.05% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 148,149 shares of company stock worth $2,738,230 in the last quarter. 0.52% of the stock is currently owned by corporate insiders.

KeyCorp Stock Up 0.2%

NYSE:KEY traded up $0.03 during trading hours on Monday, hitting $19.38. 21,339,876 shares of the company's stock traded hands, compared to its average volume of 25,522,346. The stock's fifty day moving average price is $18.21 and its two-hundred day moving average price is $16.56. The firm has a market cap of $21.25 billion, a P/E ratio of -276.91, a P/E/G ratio of 0.68 and a beta of 1.15. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.83 and a current ratio of 0.84. KeyCorp has a twelve month low of $12.73 and a twelve month high of $20.04.

KeyCorp (NYSE:KEY - Get Free Report) last released its earnings results on Tuesday, July 22nd. The financial services provider reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.01. KeyCorp had a return on equity of 9.65% and a net margin of 1.49%.The company had revenue of $1.84 billion for the quarter, compared to analysts' expectations of $1.81 billion. During the same quarter in the previous year, the business posted $0.25 EPS. The business's revenue for the quarter was up 20.6% on a year-over-year basis. On average, research analysts expect that KeyCorp will post 1.5 earnings per share for the current fiscal year.

KeyCorp Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be given a $0.205 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $0.82 dividend on an annualized basis and a yield of 4.2%. KeyCorp's dividend payout ratio is presently -1,171.43%.

KeyCorp Company Profile

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; commercial leasing, investment management, consumer finance; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses.