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KeyCorp (KEY), with a market cap of $15.8 billion, operates in the banking industry as a financial services holding company. Based in Cleveland, Ohio, it provides a diverse range of commercial and retail banking products and services through its subsidiary, KeyBank National Association.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and KeyCorp fits this criterion perfectly. KeyCorp is renowned for its strong community focus and commitment to providing personalized banking solutions tailored to the needs of individuals and small to mid-sized businesses.
KeyCorp's stock has fallen 2.6% from its 52-week high of $17.39, achieved on Sep. 19. However, it has gained 21.7% over the past three months, outpacing the 7% rise in the broader Dow Jones Industrials Average ($DOWI).
In the longer term, KeyCorp has experienced a rise of 17.7% on a YTD basis, outperforming DOWI's 11.9% increase. Additionally, KEY's shares have surged 59.7% over the past 52 weeks, while the DOWI posted a 24.2% return during the same period.
KeyCorp has shown a bullish price trend, trading mostly above its 50-day and 200-day moving averages with some fluctuations since November last year.
Despite beating earnings estimates, shares of KeyCorp dipped 4% on Jul. 18 after the company reported lower-than-expected Q2 revenue of $1.5 billion. The bank forecasted a larger decline in average loans for 2024 due to weak loan demand amid elevated interest rates. However, the stock rose 3.1% on Sep. 9 following its announcement of a balance sheet repositioning, which involved selling $7 billion worth of low-yielding investment securities to improve profitability. The move is expected to generate an additional $400 million in net interest income in 2025 and 2026, boosting investor confidence.
Highlighting the contrast in performance, rival Comerica Incorporated (CMA) has underperformed KeyCorp, with CMA experiencing a 48.2% increase over the past 52 weeks and a 9.5% rise YTD.
Despite KEY’s strong price action, analysts are cautiously optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 20 analysts in coverage, and it is currently trading below the mean price target of $17.94.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
