KeyCorp (NYSE:KEY) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• KeyCorp currently has a consensus analyst rating of “Moderate Buy” from 20 covered brokerages, with 13 buy ratings and 7 hold ratings. The average 1-year price target among recent estimates is about $49.14.
• The company reported better-than-expected Q2 earnings, posting EPS of $0.44 versus the $0.42 consensus estimate, while revenue rose 6.7% year over year to $1.96 billion. Analysts now expect KeyCorp to earn $1.82 per share for the full fiscal year.
• KeyCorp also announced a quarterly dividend of $0.205 per share, implying an annualized yield of 3.6%, and it has an active $3 billion share repurchase plan authorized earlier this year.

Shares of KeyCorp (NYSE:KEY - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twenty brokerages that are presently covering the firm, Marketbeat Ratings reports. Seven research analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $49.1389.

Several equities analysts have issued reports on KEY shares. JPMorgan Chase & Co. increased their price objective on shares of KeyCorp from $22.50 to $24.50 and gave the company a "neutral" rating in a report on Monday, July 6th. Truist Financial boosted their target price on shares of KeyCorp from $23.00 to $24.00 and gave the stock a "hold" rating in a research note on Wednesday, June 24th. The Goldman Sachs Group upped their price target on shares of KeyCorp from $25.00 to $26.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Royal Bank Of Canada raised their price target on shares of KeyCorp from $24.00 to $25.00 and gave the company an "outperform" rating in a research note on Wednesday. Finally, TD Cowen reiterated a "buy" rating and issued a $68.00 price objective on shares of KeyCorp in a report on Tuesday, June 23rd.

KeyCorp Trading Down 1.8%

Shares of NYSE:KEY opened at $22.69 on Friday. KeyCorp has a 1 year low of $16.47 and a 1 year high of $24.07. The firm has a market capitalization of $24.49 billion, a price-to-earnings ratio of 13.19, a price-to-earnings-growth ratio of 0.73 and a beta of 1.02. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.84 and a quick ratio of 0.83. The business's 50 day moving average price is $22.44 and its 200-day moving average price is $21.59.

KeyCorp (NYSE:KEY - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $0.44 EPS for the quarter, topping the consensus estimate of $0.42 by $0.02. The company had revenue of $1.96 billion during the quarter, compared to analyst estimates of $1.97 billion. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The firm's revenue was up 6.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.35 EPS. On average, equities research analysts forecast that KeyCorp will post 1.82 earnings per share for the current fiscal year.

KeyCorp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a $0.205 dividend. This represents a $0.82 annualized dividend and a dividend yield of 3.6%. The ex-dividend date is Tuesday, September 1st. KeyCorp's dividend payout ratio (DPR) is 50.31%.

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

Trending Headlines about KeyCorp

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: Jim Cramer said regional banks have been a “fantastic place to be” and specifically recommended KeyCorp, reinforcing bullish sentiment toward the stock. Jim Cramer: ‘Regional Banks Have Been A Fantastic Place To Be’
• Positive Sentiment: Analysts have been raising their outlooks after KeyCorp’s Q2 beat, citing solid earnings and improving growth trends; Keefe, Bruyette & Woods lifted its target to $26 and kept an outperform rating. KeyCorp Analysts Increase Their Forecasts After Upbeat Q2 Earnings
• Positive Sentiment: Bank of America reiterated a Buy rating with a $26 target, saying guidance was raised for loan growth and net interest income, which supports the bullish case for KeyCorp. KeyCorp: Buy Rating Reaffirmed as 2026 Guidance Raised for Loan Growth and Net Interest Income, with $26 Price Target
• Positive Sentiment: Scotiabank said its stake in KeyCorp will add $82 million to third-quarter net income, a potentially meaningful tailwind for profitability. Scotiabank says stake in KeyCorp will add $82M to third-quarter net income
• Neutral Sentiment: Some coverage noted that KeyCorp’s stock underperformed peers on Tuesday, suggesting the rally may be uneven despite the improved fundamental and analyst backdrop. KeyCorp stock underperforms Tuesday when compared to competitors
• Negative Sentiment: One earnings-focused report said Q2 revenue was pressured by weaker-than-expected noninterest income and margin performance, which could temper enthusiasm around the quarter. KeyCorp's Q2 revenue hit by weaker-than-expected noninterest income, margin trails consensus

Insider Activity

In other news, insider Angela G. Mago sold 22,826 shares of KeyCorp 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 sale, the insider directly owned 281,564 shares of the company's stock, valued at $6,098,676.24. The trade was a 7.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.56% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Maseco LLP purchased a new stake in shares of KeyCorp during the fourth quarter worth $27,000. DV Equities LLC purchased a new position in shares of KeyCorp in the fourth quarter worth about $27,000. Smithfield Trust Co acquired a new position in KeyCorp during the fourth quarter worth about $31,000. Kelleher Financial Advisors acquired a new position in KeyCorp during the third quarter worth about $32,000. Finally, Richardson Financial Services Inc. acquired a new position in KeyCorp during the fourth quarter worth about $38,000. Hedge funds and other institutional investors 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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