KeyCorp FY2025 EPS Estimates Adjusted Down by Zacks Research

KeyCorp (NYSE:KEY - Free Report) has experienced a revision in the earnings per share (EPS) estimates for the fiscal year 2025, as reported by analysts at Zacks Research. In a note released to investors on February 11th, 2024, Zacks Research analyst R. Department indicated that they now expect KeyCorp, a financial services provider, to earn $1.51 per share for the year. This is a decrease from their previous forecast of $1.55 per share.

The current consensus estimate for KeyCorp's full-year earnings stands at $1.51 per share. Additionally, Zacks Research has provided estimates for the company’s earnings in the second quarter of 2026, predicting an EPS of $0.40.

Reactions from Other Analysts

Several other equity analysts have also recently adjusted their expectations for KeyCorp's stock performance. On January 22nd, DA Davidson lowered its price target for KeyCorp from $22.00 to $21.00 while maintaining a "buy" rating. Similarly, Morgan Stanley reduced its target from $23.00 to $22.00, also rating the stock as "equal weight." On the other hand, Barclays raised the target price for KeyCorp to $21.00 from $19.00 and assigned an "equal weight" rating in early January. Furthermore, Truist Financial launched coverage on KeyCorp with a "hold" rating and set a targeted price of $19.00. Wells Fargo & Company, in contrast, increased their price target from $20.00 to $22.00 and rated the stock as "overweight." Currently, nine analysts have assigned a hold rating while ten have issued buy ratings for KeyCorp's stock, reflecting a consensus rating of "Moderate Buy" on MarketBeat, along with an average price target of $19.69.

KeyCorp's Market Performance

As of the last Friday session, KeyCorp's stock opened at $17.48. The stock has seen a significant range, with a 1-year low of $13.10 and a high of $20.04. The company's moving averages are currently at 50-day $17.63 and 200-day $17.30. KeyCorp has a debt-to-equity ratio of 0.77, indicating a moderate level of debt relative to its equity, and liquidity ratios reveal a current ratio of 0.85 and a quick ratio of 0.84, suggesting the company may struggle to meet short-term obligations.

Institutional Investor Actions

Recent actions by institutional investors reflect a growing interest in KeyCorp's shares. For example, Wolff Wiese Magana LLC increased its holdings by 285.5% in the third quarter, accumulating a total of 1,542 shares valued at approximately $26,000. Similarly, Whittier Trust Co. raised its stake by 110.3% in the fourth quarter, now holding 1,525 shares valued the same as Wolff Wiese’s. New positions have also been established by investors like Ethos Financial Group LLC and American Capital Advisory LLC, indicating a sentiment of optimism among institutional players. Current reports suggest that about 79.69% of KeyCorp stock is owned by institutional investors.

Insider Transactions and Dividends

In insider trading news, a recent transaction on February 5th saw a Director of Nova Scotia Bank buy 50,000 shares at an average price of $17.85 per share, totaling nearly $892,500. This purchase has resulted in the director holding over 162 million shares of KeyCorp, valued at approximately $2.91 billion. Currently, corporate insiders own about 0.61% of the company's stock.

KeyCorp also announced a quarterly dividend to be paid on March 14th. Shareholders on record as of March 4th will receive a dividend of $0.205 per share, resulting in an annualized dividend yield of 4.69%. However, it is worth noting that the company's dividend payout ratio appears significantly negative at -273.32%, raising concerns about sustainability.

About KeyCorp

KeyCorp operates as a holding company for KeyBank National Association and provides a range of retail and commercial banking services across the United States. The company is divided into two primary segments: Consumer Banking and Commercial Banking, offering various financial products including personal finance, investment management, mortgage services, and wealth management among others.

KeyCorp, Earnings, Analysis