The Goldman Sachs Group Issues Pessimistic Forecast for KeyCorp (NYSE:KEY) Stock Price

Key Points

• The Goldman Sachs Group cut its target price on KeyCorp to $25 (from $26) but maintained a "buy" rating, implying about a 21.45% upside from the stock's current price.
• Analyst consensus is a "Moderate Buy" with an average target of $22.61 (12 Buys, 7 Holds, 1 Sell).
• KeyCorp recently beat quarterly EPS estimates ($0.41 vs. $0.39) with revenue up 131.8% year-over-year, the stock trades near $20.59 with a P/E of 13.6, and insiders sold roughly 161,506 shares (~$3.6M) in the last 90 days.

KeyCorp (NYSE:KEY - Get Free Report) had its target price cut by stock analysts at The Goldman Sachs Group from $26.00 to $25.00 in a research report issued on Monday,MarketScreener reports. The firm presently has a "buy" rating on the financial services provider's stock. The Goldman Sachs Group's target price would suggest a potential upside of 21.45% from the company's current price.

Several other analysts have also weighed in on the company. Wells Fargo & Company set a $18.00 price objective on KeyCorp and gave the stock an "underperform" rating in a report on Tuesday, January 6th. Royal Bank Of Canada increased their price objective on shares of KeyCorp from $20.00 to $22.00 and gave the company an "outperform" rating in a research note on Friday, December 12th. Weiss Ratings raised shares of KeyCorp from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, February 25th. Argus upped their target price on shares of KeyCorp from $21.00 to $25.00 and gave the company a "buy" rating in a research note on Thursday, January 22nd. Finally, Citigroup reaffirmed a "neutral" rating on shares of KeyCorp in a report on Wednesday, December 31st. Twelve equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $22.61.

KeyCorp Stock Performance

Shares of NYSE KEY opened at $20.59 on Monday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.82 and a current ratio of 0.83. The business's 50-day simple moving average is $20.83 and its 200-day simple moving average is $19.75. The firm has a market cap of $22.08 billion, a price-to-earnings ratio of 13.60, a P/E/G ratio of 0.66 and a beta of 1.07. KeyCorp has a 52 week low of $12.78 and a 52 week high of $23.34.

KeyCorp (NYSE:KEY - Get Free Report) last posted its quarterly earnings data on Tuesday, January 20th. The financial services provider reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.02. KeyCorp had a net margin of 15.97% and a return on equity of 10.28%. The company had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $1.95 billion. During the same quarter in the previous year, the firm posted $0.30 EPS. The business's revenue was up 131.8% compared to the same quarter last year. As a group, equities research analysts expect that KeyCorp will post 1.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Angela G. Mago sold 62,850 shares of KeyCorp stock in a transaction dated 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 sale, the insider directly owned 261,415 shares of the company's stock, valued at approximately $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 can be accessed through the SEC website. Also, Director Trina M. Evans sold 32,695 shares of KeyCorp 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 transaction, the director owned 58,719 shares in the company, valued at approximately $1,276,551.06. This trade represents a 35.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 161,506 shares of company stock valued at $3,597,481. Insiders own 0.52% of the company's stock.

Institutional Investors Weigh In On KeyCorp

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in KeyCorp by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 124,811,543 shares of the financial services provider's stock valued at $2,576,110,000 after buying an additional 1,192,323 shares in the last quarter. Wellington Management Group LLP increased its holdings in shares of KeyCorp by 90.2% during the third quarter. Wellington Management Group LLP now owns 36,370,694 shares of the financial services provider's stock valued at $679,768,000 after acquiring an additional 17,245,128 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of KeyCorp by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 23,983,690 shares of the financial services provider's stock worth $493,048,000 after buying an additional 115,968 shares during the last quarter. Capital World Investors grew its position in KeyCorp by 1.1% during the fourth quarter. Capital World Investors now owns 21,027,471 shares of the financial services provider's stock valued at $434,007,000 after buying an additional 238,514 shares during the period. Finally, Invesco Ltd. increased its holdings in KeyCorp by 4.7% during the fourth quarter. Invesco Ltd. now owns 20,567,184 shares of the financial services provider's stock worth $424,507,000 after buying an additional 916,732 shares during the last quarter. 79.69% of the stock is owned by institutional investors.

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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