Pzena Investment Management LLC Makes New Investment in KeyCorp $KEY

Key Points

• Pzena Investment Management acquired 1.6 million KeyCorp shares worth approximately $36.8 million, giving it a 0.15% stake. Institutional investors collectively own 79.69% of the bank.
• KeyCorp reported quarterly earnings of $0.44 per share, exceeding estimates of $0.42, while revenue rose 6.7% year over year to $1.96 billion. Analysts maintain a “Moderate Buy” consensus rating with a $49.14 average price target.
• The company authorized a $3 billion share buyback, representing up to 13% of outstanding shares, and declared a quarterly dividend of $0.205 per share, equivalent to a 3.6% annual yield.

Pzena Investment Management LLC acquired a new stake in KeyCorp (NYSE:KEY - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 1,597,019 shares of the financial services provider's stock, valued at approximately $36,811,000. Pzena Investment Management LLC owned 0.15% of KeyCorp at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in KeyCorp during the 2nd quarter valued at $2,039,113,000. Wellington Management Group LLP grew its position in 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 purchasing an additional 17,245,128 shares during the last quarter. Deutsche Bank AG acquired a new stake in KeyCorp in the 2nd quarter worth $380,244,000. Norges Bank bought a new position in shares of KeyCorp during the 4th quarter worth about $262,688,000. Finally, North Reef Capital Management LP acquired a new position in shares of KeyCorp during the first quarter valued at about $253,632,000. Institutional investors and hedge funds own 79.69% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. JPMorgan Chase & Co. increased their target price on shares of KeyCorp from $22.50 to $24.50 and gave the company a "neutral" rating in a research note on Monday, July 6th. TD Cowen restated a "buy" rating and set a $68.00 price target on shares of KeyCorp in a research note on Tuesday, June 23rd. Truist Financial upped their price target on KeyCorp from $23.00 to $24.00 and gave the company a "hold" rating in a report on Wednesday, June 24th. Stephens initiated coverage on KeyCorp in a research report on Monday, June 15th. They issued an "overweight" rating and a $26.00 price objective for the company. Finally, Susquehanna lifted their price objective on KeyCorp from $300.00 to $415.00 and gave the stock a "positive" rating in a report on Monday, May 18th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, KeyCorp has an average rating of "Moderate Buy" and a consensus price target of $49.14.

KeyCorp Trading Down 1.1%

Shares of KeyCorp stock opened at $23.06 on Tuesday. The stock has a market capitalization of $24.61 billion, a P/E ratio of 13.41, a price-to-earnings-growth ratio of 0.76 and a beta of 1.03. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 0.63. The company has a 50-day simple moving average of $22.92 and a 200 day simple moving average of $21.77. KeyCorp has a 12-month low of $16.47 and a 12-month high of $24.07.

KeyCorp (NYSE:KEY - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.42 by $0.02. The firm had revenue of $1.96 billion for 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% compared to the same quarter last year. During the same period in the previous year, the business earned $0.35 earnings per share. Research analysts expect that KeyCorp will post 1.83 earnings per share for the current fiscal year.

KeyCorp announced that its board 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 generally an indication that the company's board of directors believes its shares are undervalued.

KeyCorp Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a $0.205 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.82 dividend on an annualized basis and a dividend yield of 3.6%. KeyCorp's payout ratio is 47.67%.

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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