Zacks Investment Research lowered shares of KeyCorp (NYSE:KEY) from a hold rating to a sell rating in a research note published on Monday.
According to Zacks, “KeyCorp’s shares have underperformed the industry over the past six months. Yet, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Its fourth-quarter 2018 results benefited from higher revenues and a fall in costs. While the bank remains well positioned for revenue growth, given the higher interest rates along with improving loan and deposit balances, mounting expenses, mainly due to the company's investments in technology upgrades and acquisitions, will likely hurt bottom-line growth to some extent. Exposure to risky loan portfolios also remains a near-term concern for the company.”
Several other equities research analysts also recently issued reports on KEY. Citigroup raised their target price on shares of KeyCorp from $19.00 to $20.00 and gave the company a neutral rating in a research note on Monday, December 3rd. BMO Capital Markets downgraded shares of KeyCorp from an outperform rating to a market perform rating and set a $17.00 target price for the company. in a research note on Friday, January 18th. Wedbush downgraded shares of KeyCorp from an outperform rating to a neutral rating and set a $16.63 target price for the company. in a research note on Monday, February 4th. They noted that the move was a valuation call. Scotiabank reiterated a hold rating on shares of KeyCorp in a research note on Friday, November 9th. Finally, UBS Group set a $23.00 target price on shares of KeyCorp and gave the company a buy rating in a research note on Monday, October 22nd. Four investment analysts have rated the stock with a sell rating, eight have given a hold rating and eleven have issued a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $22.01.
KeyCorp (NYSE:KEY) last announced its quarterly earnings data on Thursday, January 17th. The financial services provider reported $0.48 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.47 by $0.01. The company had revenue of $1.65 billion during the quarter, compared to analysts’ expectations of $1.63 billion. KeyCorp had a return on equity of 13.26% and a net margin of 24.74%. During the same quarter last year, the company earned $0.33 EPS. As a group, sell-side analysts forecast that KeyCorp will post 1.86 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 15th. Shareholders of record on Tuesday, March 5th will be given a dividend of $0.17 per share. The ex-dividend date is Monday, March 4th. This represents a $0.68 annualized dividend and a yield of 4.00%. KeyCorp’s dividend payout ratio (DPR) is presently 39.31%.
A number of hedge funds have recently modified their holdings of KEY. Boston Partners lifted its position in KeyCorp by 35.1% during the fourth quarter. Boston Partners now owns 41,244,050 shares of the financial services provider’s stock worth $609,586,000 after acquiring an additional 10,713,851 shares during the last quarter. JPMorgan Chase & Co. lifted its position in KeyCorp by 33.5% during the third quarter. JPMorgan Chase & Co. now owns 36,176,502 shares of the financial services provider’s stock worth $719,551,000 after acquiring an additional 9,086,291 shares during the last quarter. Capital World Investors acquired a new stake in KeyCorp during the third quarter worth approximately $157,529,000. FMR LLC lifted its position in KeyCorp by 33.5% during the third quarter. FMR LLC now owns 16,698,961 shares of the financial services provider’s stock worth $332,143,000 after acquiring an additional 4,186,177 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its position in KeyCorp by 14.9% during the third quarter. The Manufacturers Life Insurance Company now owns 16,968,275 shares of the financial services provider’s stock worth $337,498,000 after acquiring an additional 2,198,538 shares during the last quarter. Hedge funds and other institutional investors own 79.70% of the company’s stock.
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, as well as personal property and casualty insurance, such as home, auto, renters, watercraft, and umbrella insurance for individuals.
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