Zacks Research Has Positive View of KeyCorp FY2025 Earnings

Key Points

• Zacks Research has increased its FY2025 earnings per share (EPS) estimate for KeyCorp to $1.39, up from a prior estimate of $1.37, with a consensus estimate for the current full-year earnings at $1.50 per share.
• KeyCorp reported $0.35 EPS for the last quarter, surpassing expectations, with revenue of $1.84 billion reflecting a year-over-year increase of 20.6%.
• The company declared a quarterly dividend of $0.205 set to be paid on September 15th, representing an annualized yield of 4.6%.

KeyCorp (NYSE:KEY - Free Report) - Analysts at Zacks Research lifted their FY2025 earnings per share (EPS) estimates for KeyCorp in a research report issued to clients and investors on Tuesday, August 12th. Zacks Research analyst R. Department now forecasts that the financial services provider will post earnings of $1.39 per share for the year, up from their previous forecast of $1.37. The consensus estimate for KeyCorp's current full-year earnings is $1.50 per share. Zacks Research also issued estimates for KeyCorp's Q4 2025 earnings at $0.36 EPS, Q2 2026 earnings at $0.40 EPS, Q4 2026 earnings at $0.47 EPS, FY2026 earnings at $1.66 EPS, Q1 2027 earnings at $0.43 EPS and Q2 2027 earnings at $0.45 EPS.

KeyCorp (NYSE:KEY - Get Free Report) last posted its earnings results on Tuesday, July 22nd. The financial services provider reported $0.35 earnings per share (EPS) 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 analyst estimates of $1.81 billion. During the same quarter in the previous year, the firm earned $0.25 earnings per share. The firm's quarterly revenue was up 20.6% compared to the same quarter last year.

Several other equities analysts have also issued reports on the company. UBS Group upgraded KeyCorp from a "neutral" rating to a "buy" rating and lifted their target price for the company from $16.00 to $22.00 in a research note on Tuesday, July 8th. TD Cowen initiated coverage on KeyCorp in a report on Thursday, May 15th. They issued a "hold" rating and a $18.00 price target for the company. Citigroup reissued a "neutral" rating and issued a $20.00 price target (up previously from $19.00) on shares of KeyCorp in a report on Thursday, July 24th. Cowen initiated coverage on KeyCorp in a report on Wednesday, May 14th. They issued a "hold" rating for the company. Finally, Bank of America raised their price target on KeyCorp from $18.00 to $20.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Twelve equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company's stock. According to MarketBeat.com, KeyCorp presently has an average rating of "Hold" and an average target price of $19.39.

KeyCorp Stock Down 1.4%

KEY traded down $0.25 on Wednesday, hitting $18.05. The company had a trading volume of 23,015,212 shares, compared to its average volume of 33,652,608. The stock has a fifty day moving average price of $17.60 and a 200-day moving average price of $16.48. KeyCorp has a 12-month low of $12.73 and a 12-month high of $20.04. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.83 and a current ratio of 0.84. The stock has a market capitalization of $19.79 billion, a price-to-earnings ratio of -257.86, a P/E/G ratio of 0.64 and a beta of 1.13.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Activest Wealth Management increased its position in shares of KeyCorp by 8,775.0% in the second quarter. Activest Wealth Management now owns 1,420 shares of the financial services provider's stock valued at $25,000 after buying an additional 1,404 shares in the last quarter. Tompkins Financial Corp purchased a new stake in shares of KeyCorp in the second quarter valued at approximately $26,000. Fourth Dimension Wealth LLC purchased a new stake in shares of KeyCorp in the fourth quarter valued at approximately $28,000. Zions Bancorporation National Association UT purchased a new stake in shares of KeyCorp in the first quarter valued at approximately $28,000. Finally, Allworth Financial LP increased its position in shares of KeyCorp by 246.9% in the first quarter. Allworth Financial LP now owns 2,168 shares of the financial services provider's stock valued at $32,000 after buying an additional 1,543 shares in the last quarter. 79.69% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at KeyCorp

In other KeyCorp news, Director Trina M. Evans sold 17,000 shares of the business's stock in a transaction that occurred on Thursday, July 24th. The stock was sold at an average price of $18.67, for a total value of $317,390.00. Following the completion of the transaction, 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Christopher M. Gorman sold 112,149 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the chief executive officer directly owned 619,895 shares of the company's stock, valued at $11,691,219.70. The trade was a 15.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 148,149 shares of company stock valued at $2,738,230. 0.52% of the stock is owned by company insiders.

KeyCorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be issued a $0.205 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.82 dividend on an annualized basis and a yield of 4.5%. KeyCorp's payout ratio is presently -1,171.43%.

About KeyCorp

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.