KeyCorp (NYSE:KEY) Shares Gap Up Following Better-Than-Expected Earnings

KeyCorp (NYSE:KEY - Get Free Report)'s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. 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, beating the consensus estimate of $0.32 by $0.01. The business had revenue of $1.77 billion during the quarter, compared to analysts' expectations of $1.77 billion. KeyCorp had a positive return on equity of 8.73% and a negative net margin of 2.52%. During the same period in the previous year, the company posted $0.20 earnings per share.

KeyCorp announced that its Board of Directors has authorized a share buyback plan on Thursday, March 13th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Keefe, Bruyette & Woods dropped their price target on KeyCorp from $20.00 to $18.00 and set an "outperform" rating for the company in a research note on Monday. Morgan Stanley reaffirmed an "equal weight" rating on shares of KeyCorp in a research note on Thursday, April 17th. Royal Bank of Canada reaffirmed an "outperform" rating on shares of KeyCorp in a research note on Thursday, April 17th. Barclays decreased their price target on KeyCorp from $21.00 to $20.00 and set an "equal weight" rating for the company in a research note on Monday. Finally, Stephens restated an "overweight" rating and set a $20.00 price target on shares of KeyCorp in a report on Wednesday, January 22nd. Eight analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $19.15.

Insiders Place Their Bets

In other KeyCorp news, Director Of Nova Scotia Bank acquired 50,000 shares of the business's stock in a transaction on Wednesday, February 5th. The shares were acquired at an average price of $17.85 per share, with a total value of $892,500.00. Following the completion of the transaction, the director now owns 162,983,726 shares in the company, valued at approximately $2,909,259,509.10. This trade represents a 0.03 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 0.52% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Whittier Trust Co. increased its position in KeyCorp by 110.3% in the fourth quarter. Whittier Trust Co. now owns 1,525 shares of the financial services provider's stock worth $26,000 after buying an additional 800 shares during the last quarter. Ethos Financial Group LLC purchased a new stake in KeyCorp during the fourth quarter valued at about $27,000. Fourth Dimension Wealth LLC bought a new position in KeyCorp during the fourth quarter worth about $28,000. SBI Securities Co. Ltd. bought a new stake in shares of KeyCorp in the fourth quarter valued at approximately $34,000. Finally, TCTC Holdings LLC lifted its stake in shares of KeyCorp by 38.6% during the 4th quarter. TCTC Holdings LLC now owns 2,195 shares of the financial services provider's stock valued at $38,000 after buying an additional 611 shares in the last quarter. 79.69% of the stock is owned by institutional investors.

KeyCorp Price Performance

The firm has a market capitalization of $15.30 billion, a PE ratio of -46.47, a price-to-earnings-growth ratio of 0.65 and a beta of 1.06. The business's 50 day moving average is $15.68 and its two-hundred day moving average is $17.12. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.84 and a current ratio of 0.85.

KeyCorp Company Profile

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.