KeyCorp (NYSE:KEY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.

According to Zacks, “KeyCorp’s shares have underperformed the industry over the past six months. Yet, the company has an impressive earnings surprise history, with having surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The bank remains well positioned to benefit from rising rate environment, increase in loan and deposit balances and improving economic stability. However, persistently increasing expenses owing to investments in franchise is likely to hurt bottom line growth. Also, significant exposure toward real estate loans continues to be a major concern.”

Other analysts have also issued reports about the company. Keefe, Bruyette & Woods set a $20.00 price target on KeyCorp and gave the stock a “hold” rating in a report on Saturday, June 24th. Oppenheimer Holdings, Inc. reiterated a “hold” rating on shares of KeyCorp in a report on Saturday, July 22nd. Royal Bank Of Canada reiterated a “buy” rating and set a $21.00 price target on shares of KeyCorp in a report on Friday, July 28th. Piper Jaffray Companies reiterated a “buy” rating and set a $20.50 price target on shares of KeyCorp in a report on Friday, July 21st. Finally, Instinet reiterated a “buy” rating and set a $23.00 price target on shares of KeyCorp in a report on Wednesday, July 12th. Four investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and sixteen have given a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $20.03.

KeyCorp (KEY) traded down 1.14% on Tuesday, hitting $18.22. The company had a trading volume of 4,448,580 shares. The stock has a market capitalization of $19.82 billion, a PE ratio of 18.09 and a beta of 1.13. The stock has a 50 day moving average of $17.97 and a 200-day moving average of $18.12. KeyCorp has a one year low of $12.33 and a one year high of $19.53.

KeyCorp (NYSE:KEY) last issued its quarterly earnings results on Thursday, July 20th. The financial services provider reported $0.34 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.34. The business had revenue of $1.64 billion for the quarter, compared to analyst estimates of $1.53 billion. KeyCorp had a return on equity of 9.88% and a net margin of 16.62%. KeyCorp’s quarterly revenue was up 52.1% compared to the same quarter last year. During the same period last year, the company posted $0.27 earnings per share. Equities analysts anticipate that KeyCorp will post $1.35 EPS for the current year.

KeyCorp declared that its board has approved a stock buyback program on Wednesday, June 28th that allows the company to buyback $800.00 million in shares. This buyback authorization allows the financial services provider to purchase up to 4% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

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In other KeyCorp news, Director David K. Wilson bought 3,500 shares of KeyCorp stock in a transaction that occurred on Friday, July 28th. The stock was acquired at an average cost of $17.87 per share, for a total transaction of $62,545.00. Following the completion of the transaction, the director now directly owns 15,000 shares in the company, valued at $268,050. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Paul N. Harris sold 205,024 shares of the business’s stock in a transaction dated Friday, August 4th. The stock was sold at an average price of $18.56, for a total value of $3,805,245.44. The disclosure for this sale can be found here. Over the last 90 days, insiders have purchased 16,000 shares of company stock valued at $290,540 and have sold 259,409 shares valued at $4,794,449. 0.65% of the stock is owned by insiders.

Institutional investors have recently bought and sold shares of the stock. Cypress Capital Management LLC WY grew its position in KeyCorp by 177.9% during the second quarter. Cypress Capital Management LLC WY now owns 7,030 shares of the financial services provider’s stock worth $132,000 after buying an additional 4,500 shares in the last quarter. Sun Life Financial INC grew its position in KeyCorp by 80,370.0% during the second quarter. Sun Life Financial INC now owns 8,047 shares of the financial services provider’s stock worth $151,000 after buying an additional 8,037 shares in the last quarter. Quantbot Technologies LP purchased a new position in KeyCorp during the second quarter worth about $174,000. First Financial Bank Trust Division purchased a new position in KeyCorp during the second quarter worth about $192,000. Finally, Equity Investment Corp Acquisition Inc grew its position in KeyCorp by 3.9% during the second quarter. Equity Investment Corp Acquisition Inc now owns 10,465 shares of the financial services provider’s stock worth $196,000 after buying an additional 390 shares in the last quarter. Institutional investors and hedge funds own 80.72% of the company’s stock.

KeyCorp Company Profile

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.

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Analyst Recommendations for KeyCorp (NYSE:KEY)

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