KeyCorp (NYSE:KEY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Persistent decline in KeyCorp’s 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. However, the company's restructuring initiatives, improving credit quality and a robust balance sheet position will support its financials. Additionally, the company’s acquisition of First Niagara is expected to be accretive to its earnings.”
Several other equities analysts have also recently issued reports on the company. Citigroup Inc. lifted their price objective on KeyCorp from $14.00 to $15.00 and gave the stock a “buy” rating in a report on Monday, August 22nd. Morgan Stanley raised KeyCorp from an “equal weight” rating to an “overweight” rating and set a $15.00 price objective for the company in a report on Tuesday, July 5th. FBR & Co raised KeyCorp from a “market perform” rating to an “outperform” rating and set a $12.50 price objective for the company in a report on Monday, July 11th. Piper Jaffray Cos. cut KeyCorp from an “overweight” rating to a “neutral” rating and reduced their price objective for the stock from $14.50 to $13.00 in a report on Monday, August 29th. Finally, Credit Suisse Group AG reaffirmed a “buy” rating on shares of KeyCorp in a report on Monday, July 11th. Two analysts have rated the stock with a sell rating, six have assigned a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of “Buy” and an average target price of $14.37.
KeyCorp (NYSE:KEY) opened at 12.24 on Tuesday. The stock has a 50 day moving average price of $12.27 and a 200 day moving average price of $11.87. The firm has a market cap of $13.25 billion, a price-to-earnings ratio of 12.66 and a beta of 1.23. KeyCorp has a 52 week low of $9.88 and a 52 week high of $14.01.
KeyCorp (NYSE:KEY) last issued its quarterly earnings data on Tuesday, July 26th. The financial services provider reported $0.27 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.27. The firm earned $1.07 billion during the quarter, compared to analysts’ expectations of $1.09 billion. KeyCorp had a return on equity of 8.46% and a net margin of 17.81%. KeyCorp’s revenue was down .1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.27 earnings per share. Equities research analysts expect that KeyCorp will post $1.06 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Friday, July 29th were paid a $0.085 dividend. This represents a $0.34 annualized dividend and a dividend yield of 2.78%. The ex-dividend date of this dividend was Wednesday, July 27th. KeyCorp’s dividend payout ratio (DPR) is 35.42%.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wealthfront Inc. acquired a new position in KeyCorp during the second quarter valued at approximately $123,000. Sigma Investment Management Co boosted its stake in shares of KeyCorp by 11.0% in the second quarter. Sigma Investment Management Co now owns 11,454 shares of the financial services provider’s stock valued at $127,000 after buying an additional 1,135 shares during the last quarter. Regentatlantic Capital LLC purchased a new stake in shares of KeyCorp during the second quarter valued at about $134,000. Mizuho Asset Management Co. Ltd. boosted its stake in shares of KeyCorp by 84.1% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 12,341 shares of the financial services provider’s stock valued at $136,000 after buying an additional 5,639 shares during the last quarter. Finally, Stephens Inc. AR boosted its stake in shares of KeyCorp by 18.4% in the second quarter. Stephens Inc. AR now owns 13,266 shares of the financial services provider’s stock valued at $147,000 after buying an additional 2,064 shares during the last quarter. Institutional investors and hedge funds own 66.25% of the company’s stock.
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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