KeyCorp (KEY) Stock Rating Lowered by Zacks Investment Research
KeyCorp (NYSE:KEY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “KeyCorp’s third quarter 2016 adjusted earnings surpassed the Zacks Consensus Estimate as synergies from the First Niagara deal were impressive. Higher revenues were partially offset by a rise in expenses and provision for credit losses. Persistent growth in loans and deposits are expected to further aid top-line. Moreover, the company’s consistent efforts to streamlining operations and diversifying products are likely to keep the overall expense stable in the near term. Further, improving credit quality continues to be a major positive for the company. However, the company’s net interest margin (NIM) continues to remain under pressure, owing to the low rate environment. Moreover, stricter regulatory restrictions are likely to hurt the company’s bottom-line going forward.”
Several other research firms have also recently issued reports on KEY. Sanford C. Bernstein cut shares of KeyCorp from an “outperform” rating to a “market perform” rating and lifted their price objective for the stock from $17.00 to $19.00 in a research report on Wednesday. They noted that the move was a valuation call. Citigroup Inc. cut shares of KeyCorp from a “buy” rating to a “neutral” rating in a research report on Tuesday, November 8th. Susquehanna cut shares of KeyCorp from a “positive” rating to a “neutral” rating and lifted their price objective for the stock from $14.00 to $15.00 in a research report on Wednesday, November 9th. Wedbush reaffirmed an “outperform” rating and set a $16.00 price objective (up from $15.00) on shares of KeyCorp in a research report on Friday, October 28th. Finally, Jefferies Group reaffirmed a “buy” rating and set a $16.00 price objective on shares of KeyCorp in a research report on Wednesday, October 26th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and seventeen have issued a buy rating to the company. KeyCorp has an average rating of “Buy” and a consensus target price of $14.84.
Shares of KeyCorp (NYSE:KEY) traded up 0.18% during midday trading on Friday, reaching $17.03. The company’s stock had a trading volume of 8,826,135 shares. The company has a 50 day moving average of $13.82 and a 200-day moving average of $12.46. The stock has a market capitalization of $18.40 billion, a price-to-earnings ratio of 19.62 and a beta of 1.00. KeyCorp has a 52 week low of $9.88 and a 52 week high of $17.12.
KeyCorp (NYSE:KEY) last issued its quarterly earnings results on Tuesday, October 25th. The financial services provider reported $0.30 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.26 by $0.04. KeyCorp had a net margin of 15.72% and a return on equity of 8.44%. The company earned $1.34 billion during the quarter, compared to analysts’ expectations of $1.28 billion. During the same quarter last year, the company posted $0.27 EPS. The firm’s revenue was up 25.2% compared to the same quarter last year. Equities research analysts predict that KeyCorp will post $1.10 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 15th. Shareholders of record on Tuesday, November 29th will be issued a $0.085 dividend. This represents a $0.34 annualized dividend and a dividend yield of 2.00%. KeyCorp’s dividend payout ratio (DPR) is presently 39.08%.
Several hedge funds have recently made changes to their positions in the stock. MCF Advisors LLC increased its stake in shares of KeyCorp by 0.7% in the third quarter. MCF Advisors LLC now owns 8,598 shares of the financial services provider’s stock valued at $105,000 after buying an additional 59 shares during the period. Virtus Investment Advisers Inc. acquired a new stake in shares of KeyCorp during the third quarter valued at about $109,000. MSI Financial Services Inc increased its stake in shares of KeyCorp by 10.6% in the third quarter. MSI Financial Services Inc now owns 8,993 shares of the financial services provider’s stock valued at $109,000 after buying an additional 860 shares during the period. Cutler Capital Management LLC acquired a new stake in shares of KeyCorp during the third quarter valued at about $121,000. Finally, Checchi Capital Advisers LLC increased its stake in shares of KeyCorp by 55.6% in the third quarter. Checchi Capital Advisers LLC now owns 10,231 shares of the financial services provider’s stock valued at $125,000 after buying an additional 3,657 shares during the period. 70.15% of the stock is currently owned by 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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