Nomura Holdings Inc. Takes Position in KeyCorp (NYSE:KEY)

Nomura Holdings Inc. acquired a new stake in KeyCorp (NYSE:KEY) during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 32,659 shares of the financial services provider’s stock, valued at approximately $560,000.

Other hedge funds have also modified their holdings of the company. Park Avenue Securities LLC grew its holdings in KeyCorp by 33.1% during the fourth quarter. Park Avenue Securities LLC now owns 30,137 shares of the financial services provider’s stock worth $517,000 after acquiring an additional 7,497 shares during the period. Tallon Kerry Patrick acquired a new stake in KeyCorp during the fourth quarter worth about $248,000. Merit Financial Group LLC grew its holdings in KeyCorp by 153.7% during the fourth quarter. Merit Financial Group LLC now owns 58,407 shares of the financial services provider’s stock worth $1,001,000 after acquiring an additional 35,385 shares during the period. HB Wealth Management LLC grew its holdings in KeyCorp by 4.6% during the fourth quarter. HB Wealth Management LLC now owns 37,961 shares of the financial services provider’s stock worth $651,000 after acquiring an additional 1,659 shares during the period. Finally, Ballentine Partners LLC grew its holdings in KeyCorp by 5.7% during the fourth quarter. Ballentine Partners LLC now owns 12,855 shares of the financial services provider’s stock worth $220,000 after acquiring an additional 692 shares during the period. 79.69% of the stock is owned by institutional investors and hedge funds.

KeyCorp Stock Performance

NYSE KEY opened at $16.28 on Wednesday. The company has a market cap of $17.84 billion, a PE ratio of -54.26, a price-to-earnings-growth ratio of 0.65 and a beta of 1.08. The stock’s 50 day simple moving average is $15.19 and its 200-day simple moving average is $16.88. KeyCorp has a 1-year low of $12.73 and a 1-year high of $20.04. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.85 and a quick ratio of 0.84.

KeyCorp (NYSE:KEY) last released its earnings results on Thursday, April 17th. The financial services provider reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.01. KeyCorp had a positive return on equity of 8.73% and a negative net margin of 2.52%. The business had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.77 billion. During the same quarter last year, the business posted $0.20 earnings per share. As a group, equities research analysts anticipate that KeyCorp will post 1.5 EPS for the current fiscal year.

KeyCorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 13th. Investors of record on Tuesday, May 27th will be issued a $0.205 dividend. The ex-dividend date of this dividend is Tuesday, May 27th. This represents a $0.82 annualized dividend and a dividend yield of 5.04%. KeyCorp’s dividend payout ratio is presently -482.35%.

KeyCorp announced that its board has initiated a stock repurchase program on Thursday, March 13th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the financial services provider to buy up to 6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

KEY has been the topic of several analyst reports. Keefe, Bruyette & Woods dropped their target price on KeyCorp from $20.00 to $18.00 and set an “outperform” rating on the stock in a report on Monday, April 21st. JPMorgan Chase & Co. dropped their target price on KeyCorp from $18.50 to $16.50 and set a “neutral” rating on the stock in a report on Thursday, April 3rd. Baird R W upgraded KeyCorp from a “hold” rating to a “strong-buy” rating in a research report on Monday, April 7th. Cowen started coverage on KeyCorp in a research report on Wednesday, May 14th. They set a “hold” rating on the stock. Finally, Royal Bank of Canada reiterated an “outperform” rating on shares of KeyCorp in a research report on Thursday, April 17th. Ten equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $18.92.

Insider Activity at KeyCorp

In related news, Director Carlton L. Highsmith sold 5,000 shares of the stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $16.60, for a total value of $83,000.00. Following the completion of the sale, the director now owns 37,177 shares of the company’s stock, valued at approximately $617,138.20. This trade represents a 11.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mohit Ramani bought 10,000 shares of the business’s stock in a transaction on Monday, April 21st. The shares were acquired at an average cost of $13.75 per share, with a total value of $137,500.00. Following the purchase, the insider now owns 10,000 shares of the company’s stock, valued at $137,500. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 0.52% of the company’s stock.

About KeyCorp

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.