Royal Bank Of Canada Forecasts Strong Price Appreciation for KeyCorp (NYSE:KEY) Stock

Key Points

• Royal Bank of Canada raised its price target on KeyCorp to $24 (from $22) and kept an "outperform" rating, implying roughly a 9.9% upside from the stock's current price.
• KeyCorp beat Q1 estimates with $0.44 EPS vs. $0.41 expected and $1.95B revenue (+10.2% YoY), and management signaled at least $1.3B in 2026 share buybacks to prioritize capital returns.
• Near-term risks temper enthusiasm: net interest margin (~2.87%) fell short of some expectations, management warned of potential fee/M&A headwinds, and insiders have recently sold shares.

KeyCorp (NYSE:KEY - Get Free Report) had its price objective lifted by Royal Bank Of Canada from $22.00 to $24.00 in a research report issued on Friday,MarketScreener reports. The firm currently has an "outperform" rating on the financial services provider's stock. Royal Bank Of Canada's price target points to a potential upside of 9.88% from the stock's current price.

KEY has been the subject of several other research reports. Piper Sandler reaffirmed an "overweight" rating and issued a $24.00 price objective on shares of KeyCorp in a research report on Friday. Wells Fargo & Company set a $18.00 price objective on KeyCorp and gave the stock an "underperform" rating in a research note on Tuesday, January 6th. DA Davidson raised their price target on KeyCorp from $25.00 to $26.00 and gave the company a "buy" rating in a report on Friday. Evercore lowered their price objective on shares of KeyCorp from $26.00 to $24.00 and set an "outperform" rating on the stock in a research note on Monday, April 6th. Finally, The Goldman Sachs Group lifted their price target on KeyCorp from $25.00 to $26.00 and gave the company a "buy" rating in a report on Friday. Twelve investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, KeyCorp currently has an average rating of "Moderate Buy" and a consensus target price of $23.13.

KeyCorp Trading Up 0.8%

Shares of KEY stock opened at $21.84 on Friday. The stock has a market cap of $23.43 billion, a price-to-earnings ratio of 14.37, a price-to-earnings-growth ratio of 0.70 and a beta of 1.07. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 0.55. KeyCorp has a fifty-two week low of $13.68 and a fifty-two week high of $23.34. The firm's 50 day moving average price is $20.75 and its two-hundred day moving average price is $19.88.

KeyCorp (NYSE:KEY - Get Free Report) last released its quarterly earnings data on Thursday, April 16th. The financial services provider reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.03. KeyCorp had a net margin of 15.97% and a return on equity of 10.28%. The company had revenue of $1.95 billion during the quarter, compared to analyst estimates of $1.93 billion. During the same quarter in the prior year, the business earned $0.38 earnings per share. The business's quarterly revenue was up 10.2% compared to the same quarter last year. On average, analysts anticipate that KeyCorp will post 1.5 EPS for the current year.

Insiders Place Their Bets

In other KeyCorp news, insider Angela G. Mago sold 62,850 shares of the stock in a transaction that occurred on Thursday, January 29th. The stock was sold at an average price of $21.55, for a total transaction of $1,354,417.50. Following the transaction, the insider owned 261,415 shares in the company, valued at $5,633,493.25. This trade represents a 19.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Trina M. Evans sold 32,695 shares of the business's stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $21.74, for a total transaction of $710,789.30. Following the completion of the sale, the director owned 58,719 shares of the company's stock, valued at $1,276,551.06. The trade was a 35.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 161,506 shares of company stock valued at $3,597,481 over the last 90 days. 0.56% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On KeyCorp

Several large investors have recently made changes to their positions in KEY. DV Equities LLC acquired a new stake in KeyCorp in the 4th quarter valued at approximately $27,000. Maseco LLP bought a new stake in shares of KeyCorp in the fourth quarter valued at approximately $27,000. United Community Bank acquired a new stake in shares of KeyCorp in the third quarter worth $27,000. GoalVest Advisory LLC acquired a new stake in shares of KeyCorp in the fourth quarter worth $30,000. Finally, Smithfield Trust Co bought a new position in KeyCorp during the fourth quarter worth $31,000. Institutional investors and hedge funds own 79.69% of the company's stock.

KeyCorp News Roundup

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: Q1 beat and core operating strength — Key reported $0.44 EPS vs. $0.41 expected, revenue $1.95B (+10% YoY), net interest income +11% YoY and quarter-end loans up $2.6B; management repurchased $389M in the quarter. KEYCORP REPORTS FIRST QUARTER 2026 NET INCOME
• Positive Sentiment: Aggressive buyback signal — management signaled at least $1.3B of 2026 share repurchases and emphasized capital returns as a priority, supporting EPS leverage and shareholder returns. KeyCorp signals at least $1.3B of 2026 buybacks
• Positive Sentiment: Credit quality remains solid — nonperforming assets and net charge-offs stayed low and CET1 capital (~11.4%) provides headroom for buybacks and lending growth. KeyCorp Q1 results and metrics
• Neutral Sentiment: Management tone mixed — earnings call conveyed cautious optimism: solid execution but awareness of market risk and a plan to manage margin and capital; analysts are watching guidance and margin targets. KeyCorp Earnings Call Highlights
• Negative Sentiment: Net interest margin disappointed some investors — NIM of ~2.87% was viewed as short of some expectations and is a key driver for future earnings sensitivity. Net interest margin falls short
• Negative Sentiment: Fee income outlook and M&A pressures — management warned market disruptions could dampen investment banking and M&A fees, which could reduce noninterest income if deal activity stalls. Uncertainty expected to hit M&A fees
• Negative Sentiment: Near-term share reaction mixed — despite the quarter beat, some reports note shares dipped on guidance/margin concerns as investors weighed near-term headwinds vs. buybacks. Shares dip on guidance concerns

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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