KeyCorp (KEY) Raised to “Buy” at UBS AG
UBS AG upgraded shares of KeyCorp (NYSE:KEY) from a neutral rating to a buy rating in a report published on Monday, July 10th, 247wallst.com reports. They currently have $22.00 price objective on the financial services provider’s stock, up from their previous price objective of $19.00.
“We expect Key to continue delivering positive operating leverage, and, despite not being seen as a capital return story, the company has capacity to sustain or even increase its payout ratios from the current 80% of earnings in the coming CCAR cycles,,” UBS AG’s analyst commented.
Other research analysts also recently issued research reports about the stock. Zacks Investment Research upgraded shares of KeyCorp from a hold rating to a buy rating and set a $20.00 price target for the company in a research note on Monday, April 24th. Instinet reiterated a buy rating and issued a $23.00 price target (up previously from $22.00) on shares of KeyCorp in a research note on Sunday, April 23rd. Nomura reiterated a buy rating and issued a $23.00 price target on shares of KeyCorp in a research note on Friday, April 21st. BMO Capital Markets lifted their price target on shares of KeyCorp to $22.00 and gave the stock a buy rating in a research note on Friday, April 28th. Finally, BidaskClub upgraded shares of KeyCorp from a hold rating to a buy rating in a research note on Saturday, June 10th. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating and fifteen have given a buy rating to the stock. The company currently has an average rating of Hold and an average price target of $19.78.
KeyCorp (KEY) traded up 2.05% during midday trading on Monday, hitting $18.40. 14,673,571 shares of the stock traded hands. The company’s 50-day moving average is $18.63 and its 200 day moving average is $18.26. KeyCorp has a 12-month low of $11.44 and a 12-month high of $19.53. The firm has a market cap of $20.11 billion, a P/E ratio of 18.27 and a beta of 1.11.
KeyCorp (NYSE:KEY) last posted its quarterly earnings data on Thursday, July 20th. The financial services provider reported $0.34 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.34. KeyCorp had a net margin of 16.62% and a return on equity of 9.88%. The business had revenue of $1.64 billion during the quarter, compared to analyst estimates of $1.53 billion. During the same quarter last year, the firm posted $0.27 earnings per share. The business’s revenue for the quarter was up 52.1% compared to the same quarter last year. On average, analysts anticipate that KeyCorp will post $1.36 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 15th. Shareholders of record on Tuesday, August 29th will be paid a $0.095 dividend. The ex-dividend date of this dividend is Friday, August 25th. This represents a $0.38 annualized dividend and a yield of 2.07%. KeyCorp’s dividend payout ratio is currently 38.78%.
KeyCorp declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, June 28th that permits the company to repurchase $800.00 million in outstanding shares. This repurchase authorization permits the financial services provider to repurchase up to 4% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its stock is undervalued.
In other news, Director Bruce D. Broussard acquired 2,500 shares of the company’s stock in a transaction on Wednesday, July 26th. The shares were bought at an average cost of $18.17 per share, with a total value of $45,425.00. Following the purchase, the director now owns 12,500 shares of the company’s stock, valued at approximately $227,125. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Alexander M. Cutler acquired 5,000 shares of the company’s stock in a transaction on Tuesday, July 25th. The stock was purchased at an average cost of $18.55 per share, for a total transaction of $92,750.00. Following the completion of the purchase, the director now directly owns 55,000 shares in the company, valued at approximately $1,020,250. The disclosure for this purchase can be found here. Insiders acquired a total of 11,000 shares of company stock worth $200,720 over the last three months. 0.65% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the stock. Focused Wealth Management Inc raised its stake in shares of KeyCorp by 613.0% in the first quarter. Focused Wealth Management Inc now owns 5,961 shares of the financial services provider’s stock valued at $106,000 after buying an additional 5,125 shares during the last quarter. Thompson Davis & CO. Inc. raised its stake in shares of KeyCorp by 20.2% in the first quarter. Thompson Davis & CO. Inc. now owns 6,699 shares of the financial services provider’s stock valued at $119,000 after buying an additional 1,125 shares during the last quarter. Cypress Capital Management LLC WY raised its stake in shares of KeyCorp by 177.9% in the second quarter. Cypress Capital Management LLC WY now owns 7,030 shares of the financial services provider’s stock valued at $132,000 after buying an additional 4,500 shares during the last quarter. CI Investments Inc. bought a new stake in shares of KeyCorp during the first quarter valued at approximately $160,000. Finally, Equity Investment Corp Acquisition Inc bought a new stake in shares of KeyCorp during the first quarter valued at approximately $179,000. 81.23% of the stock is currently owned by institutional investors.
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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