KeyCorp (NYSE:KEY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Estimates have been stable lately ahead of KeyCorp’s third-quarter 2016 earnings release. Further, as the company has been consistently streamlining operations, diversifying products and exiting unprofitable businesses, overall expenses are expected to remain stable in the near term. Also, an efficient organic growth strategy, improving credit quality and robust balance sheet position are anticipated to boost the company’s financials. However, a persistent decline in net interest margin owing low interest rate environment remains a major concern. Moreover, increased dependence on home equity and commercial real estate loans raises the exposure of the company’s profits to these avenues and any deterioration in its prices may have an adverse effect on its balance sheet.”
A number of other equities research analysts have also recently commented on the stock. Citigroup Inc. lifted their price target on shares of KeyCorp from $14.00 to $15.00 and gave the stock a “buy” rating in a report on Monday, August 22nd. Morgan Stanley raised shares of KeyCorp from an “equal weight” rating to an “overweight” rating and set a $15.00 price target on the stock in a report on Tuesday, July 5th. FBR & Co raised shares of KeyCorp from a “market perform” rating to an “outperform” rating and set a $12.50 price target on the stock in a report on Monday, July 11th. Piper Jaffray Cos. cut shares of KeyCorp from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $14.50 to $13.00 in a report on Monday, August 29th. Finally, Credit Suisse Group AG reissued a “buy” rating on shares of KeyCorp in a report on Monday, July 11th. One analyst has rated the stock with a sell rating, seven have given a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $14.37.
Shares of KeyCorp (NYSE:KEY) opened at 12.76 on Tuesday. The firm has a market cap of $13.81 billion, a P/E ratio of 13.20 and a beta of 1.21. The firm has a 50 day moving average price of $12.30 and a 200-day moving average price of $11.91. KeyCorp has a one year low of $9.88 and a one year high of $14.01.
KeyCorp (NYSE:KEY) last posted its quarterly earnings results on Tuesday, July 26th. The financial services provider reported $0.27 EPS for the quarter, hitting analysts’ consensus estimates of $0.27. The company had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.09 billion. KeyCorp had a net margin of 17.81% and a return on equity of 8.46%. KeyCorp’s revenue was down .1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.27 EPS. Analysts forecast that KeyCorp will post $1.06 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Friday, July 29th were paid a dividend of $0.085 per share. This represents a $0.34 dividend on an annualized basis and a dividend yield of 2.66%. The ex-dividend date was Wednesday, July 27th. KeyCorp’s dividend payout ratio is 35.42%.
Several institutional investors have recently made changes to their positions in the stock. Bank of Montreal Can acquired a new position in shares of KeyCorp during the second quarter worth $185,766,000. Barrow Hanley Mewhinney & Strauss LLC boosted its stake in KeyCorp by 225.0% in the second quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 10,372,753 shares of the financial services provider’s stock worth $114,619,000 after buying an additional 7,181,216 shares during the last quarter. Samlyn Capital LLC boosted its stake in KeyCorp by 69.5% in the first quarter. Samlyn Capital LLC now owns 14,217,900 shares of the financial services provider’s stock worth $156,966,000 after buying an additional 5,830,900 shares during the last quarter. Renaissance Technologies LLC purchased a new stake in KeyCorp during the first quarter worth approximately $30,658,000. Finally, NN Investment Partners Holdings N.V. purchased a new stake in KeyCorp during the first quarter worth approximately $28,751,000. 66.25% of the stock is owned by institutional investors and hedge funds.
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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