Angela Mago, KeyCorp’s (NYSE:) Chief Human Resources Officer, recently sold 15,011 common shares of the company. The shares were sold at an average price of $19.59 each, amounting to a total sale value of approximately $294,065. Prior to this sale, Mago acquired the same number of shares at a price of $14.11 per share, as part of a transaction that increased her total holdings to 249,593 shares. Following the sale, her total direct ownership now stands at 234,582 shares.
In other recent news, KeyCorp reported a 7% quarter-over-quarter increase in net interest income during its Third Quarter 2024 Earnings Call. The company also announced plans for regulatory approval of Scotiabank (TSX:)’s $2.8 billion minority investment by Q1 2025. On the other hand, KeyCorp and Fifth Third Bancorp (NASDAQ:) have been grappling with rising non-performing loans in their commercial real estate portfolios, particularly office loans, due to the ongoing trend of remote work.
In the analysts’ world, Citi downgraded KeyCorp to Neutral while maintaining the existing price target of $19.00. However, DA Davidson and RBC Capital Markets both raised their stock price targets for KeyCorp, citing strong growth prospects. DA Davidson increased its target to $20.00 from $19.00, maintaining a Buy rating. RBC Capital Markets also raised its price target from $17 to $18, maintaining an Outperform rating.
These recent developments underline the dynamic financial landscape faced by U.S. regional banks amid shifting work trends and evolving financial strategies.
InvestingPro Insights
KeyCorp’s recent insider transaction occurs against a backdrop of mixed financial indicators, as revealed by InvestingPro data. The company’s stock has shown remarkable strength recently, with a 10.35% return over the past week and a 32.06% return over the last three months. This aligns with the InvestingPro Tip highlighting KeyCorp’s “significant return over the last week” and “strong return over the last three months.”
Despite these positive short-term trends, KeyCorp faces some challenges. The company’s P/E ratio stands at a staggering 3,830, which is consistent with the InvestingPro Tip indicating that KeyCorp is “trading at a high earnings multiple.” This high valuation might raise questions about the stock’s current pricing relative to its earnings potential.
On a positive note, KeyCorp boasts a dividend yield of 4.32%, which is particularly noteworthy given the InvestingPro Tip that the company “has maintained dividend payments for 53 consecutive years.” This long-standing commitment to shareholder returns could be attractive to income-focused investors.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for KeyCorp, providing a deeper understanding of the company’s financial health and market position.
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