KeyCorp (NYSE:KEY) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• KeyCorp beat earnings expectations for the quarter, reporting $0.44 EPS versus the $0.42 consensus estimate. Revenue came in at $1.96 billion, slightly below the $1.97 billion estimate.
• The company also announced a quarterly dividend of $0.205 per share, payable September 15, which works out to an annualized $0.82 dividend yield of 3.5%.
• KeyCorp’s board authorized a $3 billion share repurchase program, signaling confidence in the stock’s valuation. The company’s shares were down 0.9% in trading and several analysts maintained a generally positive outlook.

KeyCorp (NYSE:KEY - Get Free Report) posted its earnings results on Tuesday. The financial services provider reported $0.44 EPS for the quarter, beating the consensus estimate of $0.42 by $0.02, FiscalAI reports. The company had revenue of $1.96 billion for the quarter, compared to the consensus estimate of $1.97 billion. KeyCorp had a return on equity of 10.80% and a net margin of 17.03%.

KeyCorp Stock Down 0.9%

Shares of NYSE:KEY opened at $23.34 on Tuesday. KeyCorp has a 52-week low of $16.47 and a 52-week high of $24.07. The company has a market capitalization of $25.19 billion, a PE ratio of 14.32, a price-to-earnings-growth ratio of 0.74 and a beta of 1.02. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.83 and a current ratio of 0.83. The company has a fifty day moving average of $22.33 and a 200-day moving average of $21.55.

KeyCorp Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.205 per share. This represents a $0.82 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Tuesday, September 1st. KeyCorp's payout ratio is presently 50.31%.

Insider Buying and Selling at KeyCorp

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

Hedge Funds Weigh In On KeyCorp

Hedge funds have recently modified their holdings of the business. DV Equities LLC bought a new position in KeyCorp during the 4th quarter worth $27,000. Kelleher Financial Advisors bought a new stake in shares of KeyCorp in the 3rd quarter valued at about $32,000. MUFG Securities EMEA plc bought a new stake in shares of KeyCorp in the 2nd quarter valued at about $51,000. Zions Bancorporation National Association UT increased its stake in shares of KeyCorp by 585.5% in the fourth quarter. Zions Bancorporation National Association UT now owns 2,934 shares of the financial services provider's stock valued at $61,000 after buying an additional 2,506 shares during the period. Finally, EverSource Wealth Advisors LLC raised its position in shares of KeyCorp by 58.0% during the second quarter. EverSource Wealth Advisors LLC now owns 5,148 shares of the financial services provider's stock worth $90,000 after acquiring an additional 1,890 shares during the last quarter. Institutional investors and hedge funds own 79.69% of the company's stock.

KeyCorp declared that its Board of Directors has initiated a stock repurchase program on Wednesday, May 13th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 13% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Truist Financial boosted their price target on KeyCorp from $23.00 to $24.00 and gave the company a "hold" rating in a research note on Wednesday, June 24th. Stephens assumed coverage on KeyCorp in a report on Monday, June 15th. They set an "overweight" rating and a $26.00 target price for the company. Susquehanna upped their price target on shares of KeyCorp from $300.00 to $415.00 and gave the company a "positive" rating in a research note on Monday, May 18th. Wall Street Zen lowered shares of KeyCorp from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Finally, Evercore reiterated an "outperform" rating on shares of KeyCorp in a research note on Tuesday, April 21st. Thirteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $47.34.

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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