Amy G. Brady, the Chief Information Officer of KeyCorp (NYSE:NYSE:KEY), has sold a significant portion of her stock in the company, according to the latest filings. Brady disposed of 42,535 common shares at an average price range of $16.88 to $16.94, netting a total of approximately $719,692 from the sale.
The transactions, which took place on August 29, 2024, were part of Brady's planned financial activities involving KeyCorp's stock. The weighted average price of the shares sold was reported at $16.92. Detailed information about the exact number of shares sold at each price point is available upon request from KeyCorp or the Securities and Exchange Commission.
In the same filing, it was also disclosed that Brady acquired 13,856 shares of KeyCorp at a price of $14.11 per share, amounting to a total transaction value of $195,508. This transaction represents the exercise of options that vested in equal annual installments, with the final installment having vested on February 17, 2019.
Following these transactions, Brady's ownership in KeyCorp has been adjusted to 82,648 common shares. The sale of shares by a high-ranking executive such as Brady is often closely watched by investors as it may provide insights into the executive's view of the company's current valuation and future prospects.
KeyCorp, headquartered in Cleveland, Ohio, operates as a bank holding company for KeyBank National Association, which provides various retail and commercial banking services in the United States. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol KEY.
In other recent news, KeyCorp has witnessed a series of significant developments. Scotiabank purchased a 14.9% stake in KeyCorp for $2.8 billion, marking a strategic move into the U.S. banking sector. This acquisition, expected to complete in fiscal 2025, will make Scotiabank the largest investor in KeyCorp and allow the appointment of two directors to KeyCorp's board.
KeyCorp's financial outlook has been positively impacted by this deal, with Piper Sandler maintaining its Overweight rating and a steady price target of $18.00. Jefferies also increased its price target for KeyCorp shares to $19.00, maintaining a Buy rating. The firm anticipates that deal-related net interest income (NII) will contribute approximately $400 million through 2025.
Morgan Stanley (NYSE:MS) also adjusted its outlook on KeyCorp, raising the bank's price target from $18.00 to $20.00. Despite potential share dilution, KeyCorp's earnings per share (EPS) for 2025 are expected to increase modestly.
Moreover, Stephens raised the price target for KeyCorp shares to $18.00 following the company's second quarter earnings report. The report showed earnings per share of $0.25 and pre-tax, pre-provision net revenue of $452 million, approximately 3% above consensus estimates. These are recent developments that investors should monitor closely.
InvestingPro Insights
KeyCorp (NYSE:KEY) has demonstrated resilience in its dividend policy, maintaining payments for an impressive 53 consecutive years, a testament to the company's commitment to shareholder returns. The company's stock has also experienced a strong performance over various timeframes, with a notable 56.41% return over the last year, which may be an indicator of robust investor confidence and market performance.
Despite challenges in the broader market, KeyCorp's consistent dividend payments, coupled with a high dividend yield of 4.81%, position it as a potentially attractive option for income-focused investors. The stock is currently trading near its 52-week high, at 97.33% of this peak, reflecting a strong market sentiment towards the company's value.
InvestingPro Tips for KeyCorp reveal that the company has experienced some downward revisions in earnings expectations, with 9 analysts adjusting their forecasts. This suggests a need for investors to consider potential headwinds that might impact future earnings. However, the company's ability to maintain a high dividend yield and its historical dividend reliability may continue to be a compelling aspect for shareholders. For those seeking more in-depth analysis, additional InvestingPro Tips are available, providing further insights into KeyCorp's financial health and future prospects.
InvestingPro Data also highlights a market capitalization of $15.46B and a Price/Earnings (P/E) ratio of 21.64, which could offer investors a perspective on the company's current valuation relative to its earnings. For a more detailed financial analysis and additional InvestingPro Tips on KeyCorp, interested readers can visit https://www.investing.com/pro/KEY.
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