Zacks Investment Research Downgrades KeyCorp (NYSE:KEY) to Sell
Zacks Investment Research downgraded shares of KeyCorp (NYSE:KEY) from a hold rating to a sell rating in a research note published on Monday, Zacks.com reports. They currently have $20.00 target price on the financial services provider’s stock.
According to Zacks, “Shares of KeyCorp have outperformed the industry over the past three months. The company has an impressive earnings surprise history. The bank has surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The company is well positioned for revenue growth, given the higher interest rates, and improving loan and deposit balances. Also, its inorganic growth strategy will further aid profitability. Steady capital deployment actions indicate strong balance sheet position. However, mounting operating expenses mainly owing to the company's investments in franchise and acquisitions will likely hurt bottom-line growth to some extent. Further, technology upgrades (mainly to enhance digital offerings) will lead to rise in operating expenses in the near-term. Exposure to risky loan portfolios also remains a key concern for the company.”
A number of other research firms also recently commented on KEY. Wood & Company reissued an average rating and set a $38.00 price objective on shares of KeyCorp in a report on Thursday, May 16th. GMP Securities reissued an average rating and set a $34.50 price objective on shares of KeyCorp in a report on Friday, May 17th. Nomura lifted their target price on shares of Equinix from $480.00 to $500.00 and gave the stock a buy rating in a research report on Friday, March 29th. Jefferies Financial Group lifted their target price on shares of KeyCorp from $20.00 to $18.50 and gave the stock a buy rating in a research report on Monday, May 6th. Finally, Robert W. Baird cut their target price on shares of Micron Technology from $32.00 to $28.00 and set an underperform rating for the company in a research report on Friday, June 21st. Three research analysts have rated the stock with a sell rating, eleven have given a hold rating and eleven have issued a buy rating to the company. The stock has an average rating of Hold and an average price target of $23.01.
KeyCorp (NYSE:KEY) last released its quarterly earnings data on Thursday, April 18th. The financial services provider reported $0.40 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.02). The company had revenue of $1.52 billion for the quarter, compared to analysts’ expectations of $1.60 billion. KeyCorp had a return on equity of 13.16% and a net margin of 24.18%. The firm’s quarterly revenue was down 2.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.38 EPS. As a group, analysts predict that KeyCorp will post 1.8 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, June 14th. Shareholders of record on Tuesday, May 28th were given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 3.81%. The ex-dividend date was Friday, May 24th. KeyCorp’s payout ratio is currently 39.31%.
In other news, insider Amy G. Brady sold 13,238 shares of the business’s stock in a transaction that occurred on Monday, June 10th. The shares were sold at an average price of $17.00, for a total value of $225,046.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.08% of the company’s stock.
Large investors have recently bought and sold shares of the company. Alpha Omega Wealth Management LLC acquired a new position in shares of KeyCorp in the first quarter valued at approximately $25,000. Bremer Bank National Association acquired a new position in shares of KeyCorp in the first quarter valued at approximately $29,000. Global Retirement Partners LLC raised its position in shares of KeyCorp by 50.7% in the first quarter. Global Retirement Partners LLC now owns 1,989 shares of the financial services provider’s stock valued at $31,000 after buying an additional 669 shares during the last quarter. Executive Wealth Management LLC acquired a new position in shares of KeyCorp in the fourth quarter valued at approximately $36,000. Finally, Mizuho Securities Co. Ltd. raised its position in shares of KeyCorp by 56.3% in the first quarter. Mizuho Securities Co. Ltd. now owns 2,500 shares of the financial services provider’s stock valued at $39,000 after buying an additional 900 shares during the last quarter. 80.41% of the stock is owned by institutional investors and hedge funds.
KeyCorp Company Profile
KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States. The company's Key Community Bank segment offers various deposit and investment products, personal finance services, residential mortgages, home equity loans, credit cards, and installment loans.
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