KeyCorp (NYSE:KEY) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• KeyCorp has a consensus analyst rating of “Moderate Buy” from 20 covering firms, with an average 1-year price target of $46.50.
• The bank reported better-than-expected quarterly results, posting EPS of $0.44 versus the $0.41 estimate and revenue of $1.95 billion versus $1.93 billion expected.
• KeyCorp’s board approved a $3 billion share repurchase plan and the company also paid a quarterly dividend of $0.205, implying an annualized yield of about 3.5%.

Shares of KeyCorp (NYSE:KEY - Get Free Report) have received a consensus rating of "Moderate Buy" from the twenty research firms that are currently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation and twelve have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $46.50.

A number of equities research analysts recently weighed in on the company. Stephens assumed coverage on KeyCorp in a research note on Monday, June 15th. They set an "overweight" rating and a $26.00 price objective for the company. JPMorgan Chase & Co. decreased their price objective on KeyCorp from $24.50 to $22.50 and set a "neutral" rating for the company in a research note on Tuesday, April 7th. Royal Bank Of Canada upped their price objective on KeyCorp from $22.00 to $24.00 and gave the stock an "outperform" rating in a research note on Friday, April 17th. Susquehanna upped their price objective on KeyCorp from $300.00 to $415.00 and gave the stock a "positive" rating in a research note on Monday, May 18th. Finally, Evercore reiterated an "outperform" rating on shares of KeyCorp in a research note on Tuesday, April 21st.

Insider Buying and Selling

In other KeyCorp news, insider Angela G. Mago sold 22,826 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $21.66, for a total value of $494,411.16. Following the completion of the sale, the insider directly owned 281,564 shares in the company, valued at approximately $6,098,676.24. This trade represents a 7.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.56% of the company's stock.

Institutional Investors Weigh In On KeyCorp

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KEY. M&T Bank Corp raised its stake in shares of KeyCorp by 5,317.0% in the fourth quarter. M&T Bank Corp now owns 1,350,519 shares of the financial services provider's stock worth $27,875,000 after purchasing an additional 1,325,588 shares during the last quarter. Gradient Investments LLC raised its stake in shares of KeyCorp by 797.9% in the fourth quarter. Gradient Investments LLC now owns 897,563 shares of the financial services provider's stock worth $18,526,000 after purchasing an additional 797,599 shares during the last quarter. Bank of New York Mellon Corp raised its stake in shares of KeyCorp by 14.8% in the fourth quarter. Bank of New York Mellon Corp now owns 5,602,637 shares of the financial services provider's stock worth $115,638,000 after purchasing an additional 721,421 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its stake in shares of KeyCorp by 68.5% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 204,993 shares of the financial services provider's stock worth $4,428,000 after purchasing an additional 83,367 shares during the last quarter. Finally, Brevan Howard Capital Management LP raised its stake in shares of KeyCorp by 130.6% in the third quarter. Brevan Howard Capital Management LP now owns 584,471 shares of the financial services provider's stock worth $10,924,000 after purchasing an additional 330,967 shares during the last quarter. 79.69% of the stock is currently owned by hedge funds and other institutional investors.

KeyCorp Trading Up 0.2%

Shares of NYSE KEY opened at $23.30 on Monday. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.83 and a quick ratio of 0.83. The stock has a market capitalization of $25.14 billion, a P/E ratio of 14.29, a price-to-earnings-growth ratio of 0.73 and a beta of 1.03. KeyCorp has a 1-year low of $16.47 and a 1-year high of $23.72. The business has a fifty day moving average price of $21.88 and a 200 day moving average price of $21.27.

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

KeyCorp announced that its board has approved a share repurchase plan on Wednesday, May 13th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the financial services provider to purchase up to 13% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its stock is undervalued.

KeyCorp Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Tuesday, June 2nd were paid a $0.205 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $0.82 dividend on an annualized basis and a yield of 3.5%. KeyCorp's dividend payout ratio (DPR) is 50.31%.

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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