KeyCorp (KEY) Lowered to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of KeyCorp (NYSE:KEY) from a buy rating to a hold rating in a report published on Tuesday morning.

According to Zacks, “KeyCorp’s shares have outperformed the industry over the past six months. Also, the company has an impressive earnings surprise history, not lagging the Zacks Consensus Estimate in three of the trailing four quarters. The company’s fourth-quarter 2017 results benefited from higher revenues and stable expenses. The bank remains well positioned for revenue growth, given a rising rate environment and improving loan and deposit balances. Improving credit quality and enhanced capital deployment activities are the other positives. Also, corporate tax rate cut will aid profitability to some extent. However, persistently increasing expenses owing to investments in franchise and acquisitions are likely to hurt bottom-line growth. Further, the company's significant exposure toward risky loan portfolios remains a major cause of concern.”

A number of other equities research analysts also recently commented on KEY. Keefe, Bruyette & Woods reissued a buy rating and issued a $21.00 target price on shares of KeyCorp in a report on Thursday, October 19th. Oppenheimer reissued a hold rating on shares of KeyCorp in a report on Friday, October 20th. ValuEngine downgraded KeyCorp from a buy rating to a hold rating in a report on Wednesday, November 22nd. CIBC reissued a buy rating on shares of KeyCorp in a report on Friday, December 8th. Finally, Stephens raised KeyCorp from an equal weight rating to an overweight rating and set a $23.00 target price for the company in a report on Thursday, December 14th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and eighteen have given a buy rating to the company’s stock. KeyCorp has an average rating of Buy and a consensus price target of $22.07.

Shares of KeyCorp (NYSE:KEY) opened at $20.55 on Tuesday. The company has a current ratio of 0.89, a quick ratio of 0.88 and a debt-to-equity ratio of 1.02. KeyCorp has a fifty-two week low of $16.28 and a fifty-two week high of $22.22. The firm has a market capitalization of $22,012.44, a price-to-earnings ratio of 15.03, a P/E/G ratio of 1.54 and a beta of 1.04.

KeyCorp (NYSE:KEY) last issued its quarterly earnings results on Thursday, January 18th. The financial services provider reported $0.36 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.36. KeyCorp had a return on equity of 10.66% and a net margin of 18.06%. The firm had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same period last year, the company earned $0.31 earnings per share. analysts anticipate that KeyCorp will post 1.67 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 15th. Stockholders of record on Tuesday, February 27th will be paid a dividend of $0.105 per share. This represents a $0.42 annualized dividend and a dividend yield of 2.04%. The ex-dividend date is Monday, February 26th. KeyCorp’s dividend payout ratio (DPR) is presently 37.50%.

In other news, insider Craig A. Buffie sold 11,819 shares of KeyCorp stock in a transaction on Monday, January 22nd. The stock was sold at an average price of $21.21, for a total transaction of $250,680.99. Following the completion of the transaction, the insider now owns 51,791 shares of the company’s stock, valued at approximately $1,098,487.11. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Elizabeth R. Gile purchased 1,374 shares of the business’s stock in a transaction dated Wednesday, November 22nd. The shares were purchased at an average cost of $18.23 per share, with a total value of $25,048.02. Following the purchase, the director now directly owns 24,989 shares in the company, valued at $455,549.47. The disclosure for this purchase can be found here. Insiders own 0.65% of the company’s stock.

Several large investors have recently added to or reduced their stakes in the company. Boston Partners raised its stake in shares of KeyCorp by 37.6% during the 4th quarter. Boston Partners now owns 26,045,044 shares of the financial services provider’s stock worth $525,329,000 after buying an additional 7,123,113 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its stake in shares of KeyCorp by 8.0% during the 3rd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 23,857,079 shares of the financial services provider’s stock worth $448,990,000 after buying an additional 1,765,263 shares during the last quarter. Bessemer Group Inc. raised its stake in shares of KeyCorp by 17.3% during the 4th quarter. Bessemer Group Inc. now owns 14,150,163 shares of the financial services provider’s stock worth $285,409,000 after buying an additional 2,084,290 shares during the last quarter. Geode Capital Management LLC increased its position in KeyCorp by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 11,450,725 shares of the financial services provider’s stock worth $230,468,000 after purchasing an additional 97,817 shares in the last quarter. Finally, Eaton Vance Management increased its position in KeyCorp by 77.6% during the 4th quarter. Eaton Vance Management now owns 11,100,824 shares of the financial services provider’s stock worth $223,904,000 after purchasing an additional 4,850,008 shares in the last quarter. 82.19% of the stock is owned by institutional investors and hedge funds.

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About KeyCorp

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.

Analyst Recommendations for KeyCorp (NYSE:KEY)

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