SummitTX Capital L.P. Acquires New Position in KeyCorp $KEY

Key Points

• SummitTX Capital acquired 54,604 KeyCorp shares worth approximately $1.095 million during the first quarter. Institutional investors collectively own 79.69% of the company’s stock.
• KeyCorp reported quarterly EPS of $0.44, exceeding the $0.42 consensus estimate, while revenue rose 6.7% year over year to $1.96 billion.
• The company declared a quarterly dividend of $0.205 per share, representing a 3.7% yield, and authorized a $3 billion share-buyback program covering up to 13% of outstanding shares.

SummitTX Capital L.P. bought a new position in shares of KeyCorp (NYSE:KEY - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 54,604 shares of the financial services provider's stock, valued at approximately $1,095,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in KEY. Maseco LLP acquired a new stake in shares of KeyCorp in the fourth quarter valued at $27,000. DV Equities LLC purchased a new position in KeyCorp in the fourth quarter valued at $27,000. Smithfield Trust Co acquired a new position in KeyCorp during the 4th quarter worth $31,000. Kelleher Financial Advisors acquired a new position in KeyCorp during the 3rd quarter worth $32,000. Finally, Richardson Financial Services Inc. purchased a new stake in KeyCorp during the 4th quarter worth about $38,000. Hedge funds and other institutional investors own 79.69% of the company's stock.

KeyCorp Trading Down 1.9%

KEY opened at $22.21 on Thursday. 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 has a one year low of $16.47 and a one year high of $24.07. The company has a market cap of $23.97 billion, a P/E ratio of 12.91, a PEG ratio of 0.74 and a beta of 1.02. The business's 50-day simple moving average is $22.55 and its 200-day simple moving average is $21.62.

KeyCorp (NYSE:KEY - Get Free Report) last issued its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.02. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The business had revenue of $1.96 billion during the quarter, compared to the consensus estimate of $1.97 billion. During the same quarter in the previous year, the firm earned $0.35 EPS. The company's revenue was up 6.7% compared to the same quarter last year. As a group, equities research analysts expect that KeyCorp will post 1.83 EPS for the current fiscal year.

KeyCorp Announces Dividend

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

KeyCorp announced that its Board of Directors has approved a stock buyback program on Wednesday, May 13th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the financial services provider to buy up to 13% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of equities analysts have recently commented on KEY shares. TD Cowen reissued a "buy" rating and set a $68.00 price objective on shares of KeyCorp in a research report on Tuesday, June 23rd. DA Davidson reaffirmed a "buy" rating and issued a $28.00 target price on shares of KeyCorp in a report on Wednesday, July 22nd. JPMorgan Chase & Co. lifted their price target on shares of KeyCorp from $22.50 to $24.50 and gave the stock a "neutral" rating in a research note on Monday, July 6th. Weiss Ratings upgraded shares of KeyCorp from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, May 11th. Finally, Keefe, Bruyette & Woods increased their price objective on shares of KeyCorp from $25.00 to $26.00 and gave the company an "outperform" rating in a research report on Wednesday, July 22nd. Thirteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $49.14.

Insider Buying and Selling

In other news, insider Angela G. Mago sold 22,826 shares of the business's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $21.66, for a total value of $494,411.16. Following the transaction, the insider owned 281,564 shares of the company's stock, valued at approximately $6,098,676.24. The trade was a 7.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.56% of the stock is currently owned by corporate insiders.

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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