Primecap Management Co. CA Takes Position in KeyCorp $KEY

Key Points

• Primecap Management initiated a KeyCorp position worth approximately $39.2 million, purchasing 1.7 million shares and owning 0.16% of the company. Institutional investors collectively hold 79.69% of KeyCorp’s stock.
• Analyst sentiment is favorable, with a consensus “Moderate Buy” rating. Recent firms raised price targets, while KeyCorp’s shares opened at $22.10 and have traded between $16.47 and $24.07 over the past year.
• KeyCorp exceeded quarterly earnings expectations with EPS of $0.44 versus $0.42 forecast, and revenue rose 6.7% year over year. The bank also authorized a $3 billion share-repurchase program and declared a quarterly dividend of $0.205, representing a 3.7% annualized yield.

Primecap Management Co. CA bought a new position in KeyCorp (NYSE:KEY - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 1,699,430 shares of the financial services provider's stock, valued at approximately $39,172,000. Primecap Management Co. CA owned 0.16% of KeyCorp as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Jefferies Financial Group Inc. lifted its stake in KeyCorp by 62.1% in the fourth quarter. Jefferies Financial Group Inc. now owns 220,523 shares of the financial services provider's stock valued at $4,552,000 after acquiring an additional 84,497 shares during the last quarter. Bank of New York Mellon Corp increased its stake in shares of KeyCorp by 14.8% during the 4th quarter. Bank of New York Mellon Corp now owns 5,602,637 shares of the financial services provider's stock worth $115,638,000 after purchasing an additional 721,421 shares during the last quarter. North Reef Capital Management LP acquired a new position in shares of KeyCorp during the 1st quarter worth $253,632,000. Mattson Financial Services LLC raised its holdings in shares of KeyCorp by 298.1% during the 4th quarter. Mattson Financial Services LLC now owns 75,771 shares of the financial services provider's stock valued at $1,564,000 after purchasing an additional 56,736 shares in the last quarter. Finally, Swiss Life Asset Management Ltd raised its holdings in shares of KeyCorp by 72.4% during the 4th quarter. Swiss Life Asset Management Ltd now owns 2,287,205 shares of the financial services provider's stock valued at $47,208,000 after purchasing an additional 960,625 shares in the last quarter. Hedge funds and other institutional investors own 79.69% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Argus upgraded shares of KeyCorp to a "strong-buy" rating in a report on Wednesday, July 29th. Wells Fargo & Company raised 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. Royal Bank Of Canada boosted their price target on KeyCorp from $24.00 to $25.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 22nd. Keefe, Bruyette & Woods upped their price target on KeyCorp from $25.00 to $26.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 22nd. Finally, Stephens assumed coverage on KeyCorp in a report on Monday, June 15th. They set an "overweight" rating and a $26.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $49.14.

KeyCorp Price Performance

NYSE KEY opened at $22.10 on Thursday. The company has a current ratio of 0.84, a quick ratio of 0.83 and a debt-to-equity ratio of 0.63. The company has a fifty day simple moving average of $22.87 and a 200 day simple moving average of $21.78. The company has a market cap of $23.58 billion, a P/E ratio of 12.85, a P/E/G ratio of 0.72 and a beta of 1.03. KeyCorp has a 1 year low of $16.47 and a 1 year high of $24.07.

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

KeyCorp declared that its board has authorized a stock repurchase program on Wednesday, May 13th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the financial services provider to reacquire up to 13% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

KeyCorp Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a $0.205 dividend. This represents a $0.82 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 1st. KeyCorp's dividend payout ratio (DPR) is currently 47.67%.

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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