Zacks Investment Research Downgrades KeyCorp (KEY) to Hold

KeyCorp (NYSE:KEY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday. They presently have a $23.00 target price on the financial services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 13.19% from the company’s current price.

According to Zacks, “KeyCorp’s shares have underperformed the industry over the past six months. Yet, the company has an impressive earnings surprise history, not lagging the Zacks Consensus Estimate in any of the trailing four quarters. The bank remains well positioned for growth in revenues given a rising rate environment and rise in loan and deposit balances. Improving credit quality and enhanced capital deployment activities are the other positives. However, persistently increasing expenses owing to investments in franchise and acquisitions are likely to hurt bottom-line growth. Also, the company’s significant exposure to risky loan portfolios is a matter of concern.”

A number of other brokerages also recently issued reports on KEY. Keefe, Bruyette & Woods reissued a “buy” rating and issued a $21.00 price objective on shares of KeyCorp in a research note on Thursday, October 19th. Barclays boosted their price objective on KeyCorp from $19.00 to $23.00 and gave the company an “underweight” rating in a research note on Tuesday. CIBC reissued a “buy” rating on shares of KeyCorp in a research note on Friday, December 8th. Citigroup boosted their price objective on KeyCorp from $19.00 to $20.00 and gave the company a “neutral” rating in a research note on Monday, October 9th. Finally, Stephens raised KeyCorp from an “equal weight” rating to an “overweight” rating and set a $23.00 price objective on the stock in a research note on Thursday, December 14th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and sixteen have issued a buy rating to the stock. KeyCorp has an average rating of “Buy” and an average price target of $21.56.

Shares of KeyCorp (NYSE KEY) traded up $0.08 on Wednesday, reaching $20.32. The company’s stock had a trading volume of 10,503,300 shares, compared to its average volume of 8,600,134. The firm has a market cap of $21,790.00, a P/E ratio of 17.67, a PEG ratio of 1.67 and a beta of 1.09. KeyCorp has a 52-week low of $16.28 and a 52-week high of $20.59. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.90 and a quick ratio of 0.89.

KeyCorp (NYSE:KEY) last announced its earnings results on Thursday, October 19th. The financial services provider reported $0.35 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.35. The firm had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.56 billion. KeyCorp had a return on equity of 10.35% and a net margin of 18.69%. The business’s quarterly revenue was up 13.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.30 EPS. equities research analysts forecast that KeyCorp will post 1.37 EPS for the current fiscal year.

In other news, Director Elizabeth R. Gile purchased 1,374 shares of the company’s stock in a transaction that occurred on Wednesday, November 22nd. The shares were acquired at an average cost of $18.23 per share, with a total value of $25,048.02. Following the purchase, the director now owns 24,989 shares in the company, valued at $455,549.47. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Andrew J. Paine III sold 46,854 shares of the company’s stock in a transaction that occurred on Tuesday, October 24th. The stock was sold at an average price of $18.56, for a total value of $869,610.24. Following the transaction, the insider now directly owns 110,052 shares in the company, valued at $2,042,565.12. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 57,212 shares of company stock worth $1,060,508. 0.65% of the stock is owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the business. Comerica Securities Inc. increased its holdings in KeyCorp by 0.7% during the 2nd quarter. Comerica Securities Inc. now owns 11,535 shares of the financial services provider’s stock worth $216,000 after purchasing an additional 83 shares in the last quarter. Advisory Services Network LLC grew its holdings in shares of KeyCorp by 0.8% in the second quarter. Advisory Services Network LLC now owns 18,211 shares of the financial services provider’s stock valued at $341,000 after acquiring an additional 150 shares in the last quarter. Blair William & Co. IL grew its holdings in shares of KeyCorp by 1.4% in the second quarter. Blair William & Co. IL now owns 14,953 shares of the financial services provider’s stock valued at $280,000 after acquiring an additional 204 shares in the last quarter. Ameritas Investment Partners Inc. grew its holdings in shares of KeyCorp by 0.9% in the second quarter. Ameritas Investment Partners Inc. now owns 24,886 shares of the financial services provider’s stock valued at $466,000 after acquiring an additional 216 shares in the last quarter. Finally, Sterling Capital Management LLC grew its holdings in shares of KeyCorp by 1.0% in the second quarter. Sterling Capital Management LLC now owns 75,132 shares of the financial services provider’s stock valued at $1,408,000 after acquiring an additional 757 shares in the last quarter. 80.91% of the stock is owned by hedge funds and other institutional investors.

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About KeyCorp

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.

Analyst Recommendations for KeyCorp (NYSE:KEY)

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