Qsemble Capital Management LP Purchases Shares of 256,421 KeyCorp $KEY

Key Points

• Qsemble Capital Management opened a new position in KeyCorp during the fourth quarter, buying 256,421 shares valued at about $5.29 million.
• KeyCorp reported better-than-expected quarterly earnings, with EPS of $0.44 versus $0.41 expected and revenue of $1.95 billion, up 10.2% from a year earlier.
• The company announced a $3 billion share repurchase program and a quarterly dividend of $0.205 per share, implying a 3.9% annualized yield.

Qsemble Capital Management LP purchased a new stake in KeyCorp (NYSE:KEY - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 256,421 shares of the financial services provider's stock, valued at approximately $5,293,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. United Community Bank acquired a new stake in shares of KeyCorp in the 3rd quarter valued at $27,000. Maseco LLP acquired a new stake in KeyCorp during the 4th quarter worth $27,000. GoalVest Advisory LLC acquired a new stake in KeyCorp during the 4th quarter worth $30,000. Kelleher Financial Advisors acquired a new position in KeyCorp in the third quarter valued at $32,000. Finally, True Wealth Design LLC increased its stake in KeyCorp by 1,263.5% in the fourth quarter. True Wealth Design LLC now owns 1,718 shares of the financial services provider's stock valued at $35,000 after purchasing an additional 1,592 shares during the period. 79.69% of the stock is currently owned by institutional investors and hedge funds.

KeyCorp Stock Down 0.1%

Shares of NYSE KEY opened at $21.05 on Friday. KeyCorp has a 12-month low of $15.28 and a 12-month high of $23.34. The company has a market cap of $22.83 billion, a P/E ratio of 12.92, a P/E/G ratio of 0.67 and a beta of 1.06. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.62. The stock has a fifty day moving average price of $20.74 and a 200 day moving average price of $20.40.

KeyCorp (NYSE:KEY - Get Free Report) last announced its earnings results on Thursday, April 16th. The financial services provider reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.03. The business had revenue of $1.95 billion during the quarter, compared to the consensus estimate of $1.93 billion. KeyCorp had a net margin of 17.03% and a return on equity of 10.80%. The business's quarterly revenue was up 10.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.38 earnings per share. Research analysts anticipate that KeyCorp will post 1.82 EPS for the current fiscal year.

KeyCorp declared that its board has initiated a share buyback program 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 repurchase up to 13% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

KeyCorp Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Tuesday, June 2nd will be paid a $0.205 dividend. The ex-dividend date is Tuesday, June 2nd. This represents a $0.82 annualized dividend and a dividend yield of 3.9%. KeyCorp's dividend payout ratio is 50.31%.

Insider Buying and Selling

In other KeyCorp news, insider Angela G. Mago sold 22,826 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $21.66, for a total transaction of $494,411.16. Following the transaction, the insider directly owned 281,564 shares in the company, valued at $6,098,676.24. This represents a 7.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.56% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms have commented on KEY. The Goldman Sachs Group lifted their price objective on shares of KeyCorp from $25.00 to $26.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Truist Financial decreased their price objective on shares of KeyCorp from $23.00 to $22.00 and set a "hold" rating on the stock in a report on Monday, March 23rd. Weiss Ratings upgraded shares of KeyCorp from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday. Argus increased their price target on shares of KeyCorp from $21.00 to $25.00 and gave the company a "buy" rating in a research report on Thursday, January 22nd. Finally, Evercore reissued an "outperform" rating on shares of KeyCorp in a research note on Tuesday, April 21st. Twelve equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $23.18.

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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