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 report issued on Tuesday.
According to Zacks, “Persistent decline in KeyCorp’s net interest margin owing low interest rate environment remains a major concern. Moreover, increased dependence on home equity and commercial real estate loans raises the exposure of the company’s profits to these avenues and any deterioration in its prices may have an adverse effect on its balance sheet. However, the company's restructuring initiatives, improving credit quality and a robust balance sheet position will support its financials. Additionally, the company’s acquisition of First Niagara is expected to be accretive to its earnings.”
Other research analysts have also issued reports about the stock. Nomura reissued a “buy” rating on shares of KeyCorp in a report on Saturday, July 9th. Wells Fargo & Co. restated a “hold” rating on shares of KeyCorp in a research report on Saturday, July 9th. Barclays PLC restated a “sell” rating on shares of KeyCorp in a research report on Saturday, July 9th. Vetr upgraded KeyCorp from a “buy” rating to a “strong-buy” rating and set a $13.77 price target for the company in a research report on Monday, June 13th. Finally, Deutsche Bank AG restated a “hold” rating and issued a $13.00 price target on shares of KeyCorp in a research report on Wednesday, June 15th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the company’s stock. KeyCorp presently has a consensus rating of “Buy” and a consensus price target of $14.37.
Shares of KeyCorp (NYSE:KEY) opened at 12.24 on Tuesday. The stock has a market capitalization of $13.25 billion, a P/E ratio of 12.66 and a beta of 1.23. The stock has a 50 day moving average of $12.27 and a 200-day moving average of $11.87. KeyCorp has a 52-week low of $9.88 and a 52-week high of $14.01.
KeyCorp (NYSE:KEY) last posted its earnings results on Tuesday, July 26th. The financial services provider reported $0.27 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.27. KeyCorp had a net margin of 17.81% and a return on equity of 8.46%. The firm earned $1.07 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same period last year, the firm posted $0.27 earnings per share. KeyCorp’s revenue for the quarter was down .1% compared to the same quarter last year. Analysts predict that KeyCorp will post $1.06 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Friday, July 29th were issued a dividend of $0.085 per share. This represents a $0.34 dividend on an annualized basis and a dividend yield of 2.78%. The ex-dividend date of this dividend was Wednesday, July 27th. KeyCorp’s dividend payout ratio (DPR) is 35.42%.
Several large investors have recently added to or reduced their stakes in the company. Cleararc Capital Inc. increased its stake in KeyCorp by 0.5% in the second quarter. Cleararc Capital Inc. now owns 20,471 shares of the financial services provider’s stock worth $226,000 after buying an additional 94 shares during the period. Northwestern Mutual Investment Management Company LLC increased its stake in KeyCorp by 0.7% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 32,137 shares of the financial services provider’s stock worth $355,000 after buying an additional 232 shares during the period. Commonwealth Equity Services Inc increased its stake in KeyCorp by 0.3% in the second quarter. Commonwealth Equity Services Inc now owns 88,001 shares of the financial services provider’s stock worth $972,000 after buying an additional 286 shares during the period. IBM Retirement Fund increased its stake in KeyCorp by 0.4% in the second quarter. IBM Retirement Fund now owns 110,296 shares of the financial services provider’s stock worth $1,255,000 after buying an additional 430 shares during the period. Finally, Blair William & Co. IL increased its stake in KeyCorp by 4.3% in the second quarter. Blair William & Co. IL now owns 15,168 shares of the financial services provider’s stock worth $168,000 after buying an additional 625 shares during the period. 66.25% of the stock is owned by hedge funds and other institutional investors.
KeyCorp Company Profile
KeyCorp is a bank holding company. The Bank operates through its subsidiary, KeyBank National Association (KeyBank), which is engaged in providing banking services. Through KeyBank and other subsidiaries, the Company provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, commercial mortgage servicing and special servicing, and investment banking products and services to individual, corporate and institutional clients.
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