KeyCorp (NYSE:KEY) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of KeyCorp (NYSE:KEY) from a hold rating to a sell rating in a report released on Monday, Zacks.com reports. The firm currently has $20.00 target price on the financial services provider’s stock.

According to Zacks, “Shares of KeyCorp have outperformed the industry over the past three months. The company has an impressive earnings surprise history. The bank has surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The company is well positioned for revenue growth, given the higher interest rates, and improving loan and deposit balances. Also, its inorganic growth strategy will further aid profitability. Steady capital deployment actions indicate strong balance sheet position. However, mounting operating expenses mainly owing to the company's investments in franchise and acquisitions will likely hurt bottom-line growth to some extent. Further, technology upgrades (mainly to enhance digital offerings) will lead to rise in operating expenses in the near-term. Exposure to risky loan portfolios also remains a key concern for the company.”

Several other brokerages have also commented on KEY. GMP Securities restated an average rating and issued a $34.50 price target on shares of KeyCorp in a research note on Friday, May 17th. Robert W. Baird dropped their price target on shares of Micron Technology from $32.00 to $28.00 and set an underperform rating on the stock in a research note on Friday, June 21st. Nomura raised their price target on shares of Equinix from $480.00 to $500.00 and gave the company a buy rating in a research note on Friday, March 29th. JPMorgan Chase & Co. dropped their price target on shares of Realogy from $14.00 to $12.00 and set an underweight rating on the stock in a research note on Thursday, April 4th. Finally, ValuEngine lowered shares of Acceleron Pharma from a strong-buy rating to a buy rating in a research note on Thursday, April 18th. Three investment analysts have rated the stock with a sell rating, eleven have given a hold rating and eleven have assigned a buy rating to the company. KeyCorp presently has a consensus rating of Hold and an average target price of $23.01.

KEY traded up $0.22 on Monday, hitting $17.83. 6,504,528 shares of the company’s stock were exchanged, compared to its average volume of 11,534,326. The firm has a market capitalization of $17.99 billion, a price-to-earnings ratio of 10.31, a PEG ratio of 1.50 and a beta of 1.25. KeyCorp has a twelve month low of $13.65 and a twelve month high of $21.91. The company’s fifty day simple moving average is $17.06. The company has a current ratio of 0.90, a quick ratio of 0.89 and a debt-to-equity ratio of 0.98.

KeyCorp (NYSE:KEY) last released its quarterly earnings data on Thursday, April 18th. The financial services provider reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.02). The business had revenue of $1.52 billion for the quarter, compared to analyst estimates of $1.60 billion. KeyCorp had a return on equity of 13.16% and a net margin of 24.18%. KeyCorp’s revenue was down 2.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.38 EPS. On average, equities analysts expect that KeyCorp will post 1.8 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 14th. Stockholders of record on Tuesday, May 28th were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 3.81%. The ex-dividend date was Friday, May 24th. KeyCorp’s dividend payout ratio (DPR) is presently 39.31%.

In other news, insider Amy G. Brady sold 13,238 shares of the stock in a transaction that occurred on Monday, June 10th. The shares were sold at an average price of $17.00, for a total value of $225,046.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.08% of the company’s stock.

Several institutional investors have recently bought and sold shares of the company. Heritage Investors Management Corp boosted its holdings in KeyCorp by 2.8% during the second quarter. Heritage Investors Management Corp now owns 91,365 shares of the financial services provider’s stock worth $1,622,000 after buying an additional 2,525 shares in the last quarter. Hexavest Inc. bought a new stake in KeyCorp during the second quarter worth approximately $39,330,000. Chesley Taft & Associates LLC boosted its holdings in KeyCorp by 3.7% during the second quarter. Chesley Taft & Associates LLC now owns 52,750 shares of the financial services provider’s stock worth $936,000 after buying an additional 1,900 shares in the last quarter. Pennsylvania Trust Co boosted its holdings in KeyCorp by 3.1% during the second quarter. Pennsylvania Trust Co now owns 428,446 shares of the financial services provider’s stock worth $7,605,000 after buying an additional 13,013 shares in the last quarter. Finally, Crossmark Global Holdings Inc. boosted its holdings in KeyCorp by 1.8% during the second quarter. Crossmark Global Holdings Inc. now owns 86,988 shares of the financial services provider’s stock worth $1,544,000 after buying an additional 1,514 shares in the last quarter. Institutional investors and hedge funds own 80.41% of the company’s stock.

KeyCorp Company Profile

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.

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