Zacks Investment Research Downgrades KeyCorp (KEY) to Sell
KeyCorp (NYSE:KEY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “KeyCorp’s shares have underperformed the industry over the past six months. Yet, the company has an impressive earnings surprise history, with having surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The bank remains well positioned to benefit from rising rate environment, increase in loan and deposit balances and improving economic stability. However, persistently increasing expenses owing to investments in franchise is likely to hurt bottom line growth. Also, significant exposure toward real estate loans continues to be a major concern.”
Other analysts have also issued reports about the company. Keefe, Bruyette & Woods set a $20.00 price objective on KeyCorp and gave the stock a “hold” rating in a report on Saturday, June 24th. Oppenheimer Holdings, Inc. reiterated a “hold” rating on shares of KeyCorp in a report on Saturday, July 22nd. Royal Bank Of Canada reiterated a “buy” rating and set a $21.00 price objective on shares of KeyCorp in a report on Friday, July 28th. Piper Jaffray Companies reiterated a “buy” rating and set a $20.50 price objective on shares of KeyCorp in a report on Friday, July 21st. Finally, Instinet reiterated a “buy” rating and set a $23.00 price objective on shares of KeyCorp in a report on Wednesday, July 12th. Four equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and sixteen have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $20.03.
Shares of KeyCorp (NYSE:KEY) traded down 1.004% during midday trading on Tuesday, hitting $18.245. The stock had a trading volume of 3,965,258 shares. The firm has a market cap of $19.84 billion, a price-to-earnings ratio of 18.118 and a beta of 1.13. The company’s 50-day moving average price is $17.97 and its 200-day moving average price is $18.13. KeyCorp has a 12-month low of $12.33 and a 12-month high of $19.53.
KeyCorp (NYSE:KEY) last announced its quarterly earnings data on Thursday, July 20th. The financial services provider reported $0.34 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.34. KeyCorp had a return on equity of 9.88% and a net margin of 16.62%. The business had revenue of $1.64 billion during the quarter, compared to analyst estimates of $1.53 billion. During the same period last year, the company earned $0.27 earnings per share. KeyCorp’s quarterly revenue was up 52.1% compared to the same quarter last year. Equities research analysts forecast that KeyCorp will post $1.35 EPS for the current year.
KeyCorp announced that its Board of Directors has initiated a stock buyback plan on Wednesday, June 28th that allows the company to repurchase $800.00 million in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 4% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its stock is undervalued.
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In other news, insider Amy G. Brady sold 18,000 shares of the firm’s stock in a transaction dated Monday, August 7th. The stock was sold at an average price of $18.42, for a total value of $331,560.00. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Alexander M. Cutler purchased 5,000 shares of the stock in a transaction dated Tuesday, July 25th. The stock was acquired at an average cost of $18.55 per share, for a total transaction of $92,750.00. Following the completion of the transaction, the director now owns 55,000 shares of the company’s stock, valued at approximately $1,020,250. The disclosure for this purchase can be found here. Over the last ninety days, insiders bought 16,000 shares of company stock worth $290,540 and sold 259,409 shares worth $4,794,449. Company insiders own 0.65% of the company’s stock.
Large investors have recently modified their holdings of the company. Teachers Advisors LLC lifted its stake in shares of KeyCorp by 0.8% in the first quarter. Teachers Advisors LLC now owns 3,537,235 shares of the financial services provider’s stock valued at $62,892,000 after buying an additional 28,691 shares during the period. Massachusetts Financial Services Co. MA lifted its stake in shares of KeyCorp by 2.8% in the first quarter. Massachusetts Financial Services Co. MA now owns 4,005,489 shares of the financial services provider’s stock valued at $71,217,000 after buying an additional 110,343 shares during the period. Barrow Hanley Mewhinney & Strauss LLC lifted its stake in shares of KeyCorp by 3.9% in the first quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 17,011,141 shares of the financial services provider’s stock valued at $302,458,000 after buying an additional 636,778 shares during the period. Uniplan Investment Counsel Inc. lifted its stake in shares of KeyCorp by 620.5% in the first quarter. Uniplan Investment Counsel Inc. now owns 269,104 shares of the financial services provider’s stock valued at $4,784,000 after buying an additional 231,753 shares during the period. Finally, Global X Management Co. LLC lifted its stake in shares of KeyCorp by 12.4% in the first quarter. Global X Management Co. LLC now owns 42,966 shares of the financial services provider’s stock valued at $764,000 after buying an additional 4,725 shares during the period. 80.72% of the stock is currently owned by institutional investors.
KeyCorp Company Profile
KeyCorp is a bank holding company. The Company is a bank-based financial services company. The Company operates through its subsidiary, KeyBank National Association (KeyBank), which is engaged in providing banking services. Through KeyBank and other subsidiaries, it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate and institutional clients.
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