KeyCorp (KEY) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research downgraded shares of KeyCorp (NYSE:KEY) from a buy rating to a hold rating in a research report released on Monday morning.

According to Zacks, “KeyCorp’s shares have outperformed the industry over the past six months. Yet, the company does not have an impressive earnings surprise history, as it did not surpass the Zacks Consensus Estimate in any of the trailing four quarters. The bank remains well positioned for revenue growth, given a rising rate environment and improving loan and deposit balances. Also, lower tax rates will support profitability. However, persistently increasing expenses owing to investments in franchise and acquisitions are likely to hurt bottom-line growth. Also, the company's significant exposure toward risky loan portfolios remains a major concern.”

KEY has been the topic of a number of other reports. ValuEngine cut shares of KeyCorp from a buy rating to a hold rating in a research note on Monday, April 2nd. Morgan Stanley lifted their price objective on shares of KeyCorp from $24.50 to $25.00 and gave the company an overweight rating in a research note on Tuesday, April 24th. Vining Sparks restated a buy rating and set a $25.00 price objective on shares of KeyCorp in a research note on Friday, April 6th. Keefe, Bruyette & Woods restated a buy rating and set a $23.00 price objective on shares of KeyCorp in a research note on Thursday, April 5th. Finally, UBS Group upgraded shares of KeyCorp from a neutral rating to a positive rating in a research note on Tuesday, April 24th. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and fifteen have given a buy rating to the stock. The stock currently has a consensus rating of Buy and an average price target of $22.45.

Shares of KeyCorp opened at $20.11 on Monday, according to Marketbeat Ratings. KeyCorp has a fifty-two week low of $16.28 and a fifty-two week high of $22.40. The company has a current ratio of 0.89, a quick ratio of 0.87 and a debt-to-equity ratio of 0.99. The stock has a market cap of $21.66 billion, a P/E ratio of 14.79, a P/E/G ratio of 1.26 and a beta of 1.02.

KeyCorp (NYSE:KEY) last issued its quarterly earnings data on Thursday, April 19th. The financial services provider reported $0.38 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.38. KeyCorp had a net margin of 19.32% and a return on equity of 11.03%. The business had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.56 billion. During the same period in the previous year, the business earned $0.32 earnings per share. The company’s revenue was up 3.1% on a year-over-year basis. analysts predict that KeyCorp will post 1.7 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Friday, June 15th. Shareholders of record on Tuesday, May 29th were given a $0.12 dividend. The ex-dividend date of this dividend was Friday, May 25th. This is a boost from KeyCorp’s previous quarterly dividend of $0.11. This represents a $0.48 annualized dividend and a yield of 2.39%. KeyCorp’s payout ratio is 35.29%.

In other KeyCorp news, insider Edward J. Burke sold 10,000 shares of the business’s stock in a transaction dated Tuesday, May 8th. The stock was sold at an average price of $19.83, for a total transaction of $198,300.00. Following the sale, the insider now owns 126,526 shares in the company, valued at approximately $2,509,010.58. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.65% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of KEY. The Manufacturers Life Insurance Company raised its holdings in KeyCorp by 61.8% during the 1st quarter. The Manufacturers Life Insurance Company now owns 13,628,892 shares of the financial services provider’s stock worth $266,444,000 after buying an additional 5,205,496 shares during the period. Millennium Management LLC raised its holdings in KeyCorp by 136.3% during the 1st quarter. Millennium Management LLC now owns 7,484,951 shares of the financial services provider’s stock worth $146,331,000 after buying an additional 4,317,598 shares during the period. Two Sigma Investments LP raised its holdings in KeyCorp by 24,671.7% during the 4th quarter. Two Sigma Investments LP now owns 2,948,598 shares of the financial services provider’s stock worth $59,473,000 after buying an additional 2,960,598 shares during the period. Renaissance Technologies LLC acquired a new stake in KeyCorp during the 4th quarter worth about $49,676,000. Finally, Thrivent Financial for Lutherans raised its holdings in KeyCorp by 38.0% during the 1st quarter. Thrivent Financial for Lutherans now owns 8,108,123 shares of the financial services provider’s stock worth $158,514,000 after buying an additional 2,231,623 shares during the period. Hedge funds and other institutional investors own 79.88% of the company’s stock.

About KeyCorp

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, as well as personal property and casualty insurance, such as home, auto, renters, watercraft, and umbrella insurance for individuals.

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