Zacks Investment Research cut shares of KeyCorp (NYSE:KEY) from a buy rating to a hold rating in a research note released on Friday.
According to Zacks, “KeyCorp shares have outperformed the Zacks categorized Major Regional Banks industry over the last six months. Its persistent growth in loans and deposits are expected to aid top-line growth. Moreover, management expects the First Niagara deal to result in earnings accretion of approximately 5% in 2017. Further, the company’s consistent efforts to streamlining operations and diversifying products are likely to keep the overall expense stable in the near term. However, persistent pressure on net interest margin owing to low interest rate environment continue to be a major near-term concern. In addition, exposure to risky loans and heightened regulatory restrictions make us apprehensive about its future prospects.”
KEY has been the topic of a number of other reports. Rafferty Capital Markets upgraded KeyCorp from a hold rating to a buy rating in a report on Tuesday, October 25th. Jefferies Group restated a buy rating and issued a $16.00 price objective on shares of KeyCorp in a report on Wednesday, October 26th. Citigroup Inc. downgraded KeyCorp from a buy rating to a neutral rating in a report on Tuesday, November 8th. Standpoint Research downgraded KeyCorp from a buy rating to a hold rating in a report on Monday, November 21st. Finally, Keefe, Bruyette & Woods restated an outperform rating on shares of KeyCorp in a report on Wednesday, October 12th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and sixteen have assigned a buy rating to the company. The company presently has an average rating of Buy and an average target price of $14.84.
KeyCorp (NYSE:KEY) opened at 17.33 on Friday. KeyCorp has a one year low of $9.88 and a one year high of $17.57. The firm has a market capitalization of $18.73 billion, a P/E ratio of 19.97 and a beta of 1.00. The company has a 50-day moving average price of $14.56 and a 200-day moving average price of $12.65.
KeyCorp (NYSE:KEY) last issued its quarterly earnings results on Tuesday, October 25th. The financial services provider reported $0.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04. KeyCorp had a return on equity of 8.44% and a net margin of 15.72%. The firm had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same period last year, the company earned $0.27 EPS. The firm’s quarterly revenue was up 25.2% on a year-over-year basis. On average, equities research analysts anticipate that KeyCorp will post $1.10 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Shareholders of record on Tuesday, November 29th will be paid a dividend of $0.085 per share. This represents a $0.34 annualized dividend and a yield of 1.96%. The ex-dividend date is Friday, November 25th. KeyCorp’s payout ratio is currently 39.08%.
A number of hedge funds have recently made changes to their positions in the stock. MCF Advisors LLC increased its stake in shares of KeyCorp by 0.7% in the third quarter. MCF Advisors LLC now owns 8,598 shares of the financial services provider’s stock valued at $105,000 after buying an additional 59 shares during the last quarter. MSI Financial Services Inc increased its stake in shares of KeyCorp by 10.6% in the third quarter. MSI Financial Services Inc now owns 8,993 shares of the financial services provider’s stock valued at $109,000 after buying an additional 860 shares during the last quarter. Virtus Investment Advisers Inc. acquired a new stake in shares of KeyCorp during the third quarter valued at $109,000. Cutler Capital Management LLC acquired a new stake in shares of KeyCorp during the third quarter valued at $121,000. Finally, Wealthfront Inc. acquired a new stake in shares of KeyCorp during the second quarter valued at $123,000. 78.55% of the stock is currently owned by hedge funds and other institutional investors.
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.