KeyCorp (NYSE:KEY) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• KeyCorp has a consensus analyst rating of “Moderate Buy” from 21 covering firms, with 13 buy ratings, 7 hold ratings, and 1 sell rating. The average 12-month price target is about $42.78.
• The company recently reported better-than-expected quarterly results, earning $0.44 per share versus estimates of $0.41 and generating $1.95 billion in revenue, slightly above forecasts. Revenue rose 10.2% year over year, and analysts expect full-year EPS of $1.83.
• KeyCorp also announced a $3 billion share buyback and a quarterly dividend of $0.205 per share, implying an annualized yield of 3.9%. The buyback and dividend signal shareholder returns remain a priority.

KeyCorp (NYSE:KEY - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twenty-one ratings firms that are presently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and thirteen have given a buy rating to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $42.7750.

A number of equities research analysts recently commented on the stock. Robert W. Baird increased their target price on shares of KeyCorp from $19.00 to $22.00 and gave the company a "neutral" rating in a research report on Friday, April 17th. Truist Financial decreased their target price on shares of KeyCorp from $23.00 to $22.00 and set a "hold" rating for the company in a research report on Monday, March 23rd. JPMorgan Chase & Co. decreased their target price on shares of KeyCorp from $24.50 to $22.50 and set a "neutral" rating for the company in a research report on Tuesday, April 7th. Weiss Ratings raised shares of KeyCorp from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, May 11th. Finally, Royal Bank Of Canada increased their target price on shares of KeyCorp from $22.00 to $24.00 and gave the company an "outperform" rating in a research report on Friday, April 17th.

KeyCorp Price Performance

Shares of KEY opened at $20.92 on Thursday. The company has a 50 day moving average price of $21.23 and a 200-day moving average price of $20.75. KeyCorp has a fifty-two week low of $15.59 and a fifty-two week high of $23.34. The stock has a market capitalization of $22.68 billion, a PE ratio of 12.83, a PEG ratio of 0.67 and a beta of 1.03. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.83 and a current ratio of 0.83.

KeyCorp (NYSE:KEY - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The financial services provider reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.03. KeyCorp had a net margin of 17.03% and a return on equity of 10.80%. The firm had revenue of $1.95 billion during the quarter, compared to analysts' expectations of $1.93 billion. During the same quarter in the prior year, the company earned $0.38 EPS. The company's revenue was up 10.2% compared to the same quarter last year. Equities analysts predict that KeyCorp will post 1.83 earnings per share for the current fiscal year.

KeyCorp declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 13th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 13% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

KeyCorp Announces Dividend

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

Insider Transactions at KeyCorp

In other KeyCorp news, insider Angela G. Mago sold 22,826 shares of the company's stock in a transaction that occurred 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 owned 281,564 shares in the company, valued at approximately $6,098,676.24. This represents a 7.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.56% of the company's stock.

Hedge Funds Weigh In On KeyCorp

Hedge funds and other institutional investors have recently bought and sold shares of the business. BNP PARIBAS ASSET MANAGEMENT Holding S.A. lifted its holdings in KeyCorp by 2.7% during the third quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 2,013,977 shares of the financial services provider's stock valued at $37,641,000 after purchasing an additional 53,682 shares in the last quarter. Synovus Financial Corp purchased a new position in KeyCorp during the third quarter valued at $2,253,000. National Pension Service lifted its holdings in KeyCorp by 30.6% during the third quarter. National Pension Service now owns 198,659 shares of the financial services provider's stock valued at $3,713,000 after purchasing an additional 46,509 shares in the last quarter. M&T Bank Corp lifted its holdings in KeyCorp by 5,317.0% during the fourth quarter. M&T Bank Corp now owns 1,350,519 shares of the financial services provider's stock valued at $27,875,000 after purchasing an additional 1,325,588 shares in the last quarter. Finally, Xponance Inc. lifted its holdings in KeyCorp by 31.0% during the third quarter. Xponance Inc. now owns 471,949 shares of the financial services provider's stock valued at $8,821,000 after purchasing an additional 111,753 shares in the last quarter. Institutional investors and hedge funds own 79.69% of the company's stock.

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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