KeyCorp (NYSE:KEY) Shares Gap Up After Earnings Beat

KeyCorp (NYSE:KEY)’s stock price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $14.07, but opened at $14.50. KeyCorp shares last traded at $14.32, with a volume of 2,583,115 shares changing hands.

The financial services provider reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.01. KeyCorp had a positive return on equity of 8.73% and a negative net margin of 2.52%. The firm had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.77 billion. During the same quarter in the prior year, the business posted $0.20 earnings per share.

KeyCorp announced that its Board of Directors has initiated a stock repurchase plan on Thursday, March 13th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 6% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Stephens reissued an “overweight” rating and set a $20.00 price target on shares of KeyCorp in a research note on Wednesday, January 22nd. Truist Financial decreased their price objective on KeyCorp from $19.00 to $18.00 and set a “hold” rating on the stock in a report on Friday, March 21st. Wells Fargo & Company reissued an “overweight” rating on shares of KeyCorp in a research note on Thursday. Barclays raised their price target on KeyCorp from $19.00 to $21.00 and gave the stock an “equal weight” rating in a research report on Monday, January 6th. Finally, Morgan Stanley reiterated an “equal weight” rating on shares of KeyCorp in a research report on Thursday. Seven research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $19.31.

Insider Buying and Selling at KeyCorp

In other news, Director Of Nova Scotia Bank bought 50,000 shares of the stock in a transaction dated Wednesday, February 5th. The shares were acquired at an average cost of $17.85 per share, with a total value of $892,500.00. Following the purchase, the director now directly owns 162,983,726 shares in the company, valued at $2,909,259,509.10. The trade was a 0.03 % increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.61% of the stock is owned by corporate insiders.

Institutional Trading of KeyCorp

Several institutional investors have recently modified their holdings of KEY. Principal Financial Group Inc. boosted its stake in KeyCorp by 3.4% during the 4th quarter. Principal Financial Group Inc. now owns 1,117,238 shares of the financial services provider’s stock worth $19,149,000 after purchasing an additional 36,424 shares during the last quarter. Truist Financial Corp raised its holdings in KeyCorp by 27.1% in the 4th quarter. Truist Financial Corp now owns 95,856 shares of the financial services provider’s stock valued at $1,643,000 after acquiring an additional 20,424 shares during the last quarter. Avanza Fonder AB acquired a new position in shares of KeyCorp during the 4th quarter worth approximately $1,618,000. Proficio Capital Partners LLC purchased a new stake in shares of KeyCorp in the fourth quarter valued at approximately $1,519,000. Finally, CHURCHILL MANAGEMENT Corp lifted its position in KeyCorp by 5.9% during the fourth quarter. CHURCHILL MANAGEMENT Corp now owns 465,333 shares of the financial services provider’s stock worth $7,976,000 after buying an additional 26,047 shares in the last quarter. Institutional investors and hedge funds own 79.69% of the company’s stock.

KeyCorp Price Performance

The company has a market cap of $15.62 billion, a price-to-earnings ratio of -47.53, a price-to-earnings-growth ratio of 0.65 and a beta of 1.06. The stock has a 50 day simple moving average of $15.75 and a two-hundred day simple moving average of $17.13. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.85 and a quick ratio of 0.84.

About KeyCorp

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; commercial leasing, investment management, consumer finance; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses.