KeyCorp (KEY) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research cut shares of KeyCorp (NYSE:KEY) from a buy rating to a hold rating in a research note published on Tuesday.
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.”
KEY has been the subject of several other research reports. Keefe, Bruyette & Woods restated a buy rating and issued a $21.00 price target on shares of KeyCorp in a report on Thursday, October 19th. CIBC restated a buy rating on shares of KeyCorp in a report on Friday, December 8th. Barclays lifted their price target on KeyCorp from $19.00 to $23.00 and gave the company an underweight rating in a report on Tuesday, January 2nd. Stephens upgraded KeyCorp from an equal weight rating to an overweight rating and set a $23.00 price target for the company in a report on Thursday, December 14th. Finally, DA Davidson lifted their price target on KeyCorp to $26.00 and gave the company a buy rating in a report on Friday, January 19th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and eighteen have given a buy rating to the company’s stock. The stock currently has an average rating of Buy and a consensus target price of $22.07.
KeyCorp (NYSE:KEY) last posted its quarterly earnings results on Thursday, January 18th. The financial services provider reported $0.36 EPS for the quarter, meeting the consensus estimate of $0.36. The company had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.58 billion. KeyCorp had a return on equity of 10.66% and a net margin of 18.06%. During the same quarter in the previous year, the business earned $0.31 EPS. analysts expect that KeyCorp will post 1.67 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 15th. Stockholders of record on Tuesday, February 27th will be paid a $0.105 dividend. 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 is currently 37.50%.
In other news, insider Craig A. Buffie sold 11,819 shares of KeyCorp stock in a transaction dated Monday, January 22nd. The stock was sold at an average price of $21.21, for a total value of $250,680.99. Following the transaction, the insider now directly 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 accessible through the SEC website. Also, Director Elizabeth R. Gile acquired 1,374 shares of KeyCorp stock in a transaction dated Wednesday, November 22nd. The stock was purchased at an average cost of $18.23 per share, for a total transaction of $25,048.02. Following the completion of 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 hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Zions Bancorporation lifted its position in KeyCorp by 2,277.5% during the 3rd quarter. Zions Bancorporation now owns 5,706 shares of the financial services provider’s stock worth $107,000 after acquiring an additional 5,466 shares in the last quarter. Bank of Nova Scotia Trust Co. acquired a new position in KeyCorp during the 3rd quarter worth approximately $132,000. Harel Insurance Investments & Financial Services Ltd. acquired a new position in KeyCorp during the 3rd quarter worth approximately $145,000. AllSquare Wealth Management LLC acquired a new position in KeyCorp during the 3rd quarter worth approximately $173,000. Finally, Connable Office Inc. acquired a new position in KeyCorp during the 3rd quarter worth approximately $195,000. 82.19% of the stock is currently owned by institutional investors and hedge funds.
KeyCorp Company Profile
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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