KeyCorp KeyBank Stock Market Insights and Analysts' Recommendations

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A contemporary city skyline featuring tall buildings and a prominent bank at dusk.
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KeyCorp KeyBank has a market capitalization of $19.3 billion, making it a significant player in the banking industry.

Analysts' consensus is that KeyCorp KeyBank's stock price will reach $30.50 by the end of 2023, representing a 10% increase from its current value.

Investors are looking to KeyCorp KeyBank for its strong earnings growth, with a projected increase of 12% in the next fiscal year.

Many analysts have given KeyCorp KeyBank a "buy" rating, citing its solid financial performance and expanding market share.

For another approach, see: Kimco Realty Corporation Stock

Financial Performance

KeyCorp KeyBank's financial performance is a vital aspect of understanding the company's overall health. The bank's return on assets (ROA) is significantly lower than its peers, with a normalized ROA of 0.34%.

KeyBank's return on equity (ROE) is a notable 5.12%, which is lower than the 11.81% and 11.77% achieved by its competitors, HBAN and WFC respectively.

While KeyBank's financial performance is not as strong as its competitors, it's essential to consider the company's overall strategy and goals.

Valuation

Credit: youtube.com, Evaluating a Firm’s Financial Performance

Valuation is a crucial aspect of financial performance, and KeyCorp's numbers are quite telling. The company's market capitalization has fluctuated over time, ranging from $15.66 billion to $28.03 billion.

One notable trend is the decline in market capitalization from $28.03 billion to $18.6 billion. This could be a sign of investor confidence waning, but it's essential to consider the broader market context.

The company's P/E ratio has also been volatile, dropping from -53.6x in 2024 to 12x in 2025. This significant change suggests that investors are becoming more optimistic about KeyCorp's future prospects.

Here's a summary of KeyCorp's valuation metrics:

The free-float yield has remained relatively stable, with a 2024 yield of 4.78% and a 2025 yield of 4.68%. This suggests that investors are still earning a decent return on their investment in KeyCorp.

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Profitability

When evaluating the financial performance of a company, one key aspect to consider is profitability. Return on Assets (ROA) is a crucial metric that shows how well a company is using its assets to generate revenue. According to the data, Wells Fargo (WFC) has a normalized ROA of 0.34%, while Huntington Bancshares (HBAN) has a normalized ROA of 1.04%.

Credit: youtube.com, Financial Performance 8 Profitability Ratios

This significant difference in ROA between the two companies suggests that HBAN is more efficient in using its assets to generate revenue. Return on Equity (ROE) is another important metric that measures a company's ability to generate profits from its shareholders' equity. HBAN's normalized ROE of 11.81% is notably higher than WFC's 5.12%.

Here's a comparison of the normalized ROA and ROE for WFC and HBAN:

By examining these metrics, we can gain a better understanding of how WFC and HBAN are performing financially, and make more informed decisions about investing in these companies.

Analysts' Recommendations

Analysts are closely watching KeyCorp's performance, with several firms adjusting their price targets and ratings.

DA Davidson recently adjusted its price target on KeyCorp to $21 from $20, while keeping its Buy rating. This suggests that DA Davidson is optimistic about KeyCorp's future prospects.

Keefe Bruyette Woods also made an adjustment, lowering its price target on KeyCorp to $21 from $22, while maintaining its Outperform rating. This indicates that Keefe Bruyette Woods still sees KeyCorp as a strong performer.

Broaden your view: Flagstar Bank Rating

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Morgan Stanley, on the other hand, adjusted its price target on KeyCorp to $22 from $23, while keeping its Equalweight rating. This suggests that Morgan Stanley is taking a more cautious approach to KeyCorp's potential.

Piper Sandler recently trimmed its price target on KeyCorp to $20 from $21. This could indicate that Piper Sandler is reevaluating its expectations for KeyCorp's performance.

Truist is also worth noting, as it initiated coverage of KeyCorp with a Hold rating and a price target of $19. This suggests that Truist is taking a more neutral stance on KeyCorp's future prospects.

Here is a summary of the analysts' recommendations:

Press Releases

KeyCorp, the parent company of KeyBank, has been making headlines with its recent press releases. KeyBank Foundation made a significant investment of $500,000 to support the Key2Employment program at SUNY Cobleskill, aiming to create opportunities for individuals with neurodiversity.

This investment is a testament to the company's commitment to diversity and inclusion. KeyCorp has also been expanding its services, with a recent announcement of a new chief risk officer.

Curious to learn more? Check out: Keybank Loan Officer

Credit: youtube.com, Earnings Press Releases

KeyBank has been actively involved in financing affordable housing projects, providing $23 million for a new development in Trotwood, Ohio. A similar project in Toledo, Ohio, received $36.4 million in financing from KeyBank.

Here's a breakdown of the recent press releases:

KeyCorp's recent press releases highlight its focus on community development and financial performance.

Market Insights

KeyCorp's fourth-quarter profit beat estimates, thanks to a boom in dealmaking. The company's adjusted earnings rose to $0.38, surpassing the FactSet estimate of $0.33.

Several analysts adjusted their price targets for KeyCorp in early January. DA Davidson raised its target to $21 from $20, while Keefe Bruyette Woods reduced its target to $21 from $22.

Investors were also keeping an eye on KeyCorp's revenue, which declined to $865M in the fourth quarter, missing the FactSet estimate of $1.74B.

Banks

On January 22, DA Davidson adjusted its price target on KeyCorp to $21 from $20, while keeping a Buy rating. This is a significant move that could impact investors' decisions.

Credit: youtube.com, Market Insight: Banks, shopping baskets & big tech | REUTERS

KeyCorp has been a focus of analysts in recent days, with multiple adjustments to its price target. Keefe Bruyette Woods also made a move on January 22, adjusting its price target on KeyCorp to $21 from $22, while keeping an Outperform rating.

Here are the latest updates on KeyCorp's price target adjustments:

Latest News

KeyCorp's fourth-quarter profit has beaten estimates, thanks to a dealmaking boom. This is according to the article section.

In other news, several analysts have adjusted their price targets on KeyCorp. DA Davidson has set a new price target of $21, while Keefe Bruyette Woods has adjusted its target to $21 from $22.

Morgan Stanley has also weighed in, adjusting its price target to $22 from $23. On the other hand, Piper Sandler has trimmed its price target to $20 from $21.

Here's a quick rundown of the analysts' moves:

Stocks have been rising pre-bell ahead of a busy earnings week, with Asia mostly up and Europe down.

Corporate Governance

Credit: youtube.com, $KEY KeyCorp Q4 2024 Earnings Conference Call

KeyCorp's corporate governance is led by experienced individuals. Christopher Gorman, the CEO, has been in the role since 2020-04-30 and is 64 years old.

The company's board of directors includes Alexander Cutler, a director since 1999-12-31, and H. Dallas, a director since 2004-12-31. Both Cutler and Dallas are 73 and 66 years old, respectively.

Here are some key members of KeyCorp's corporate governance team:

Corp

KeyCorp's leadership is structured in a way that allows for significant compensation packages for top executives. KeyCorp CEO Chris Gorman is set to receive a $7.5 million bonus after Scotiabank's investment in the company.

The company's focus on serving middle-market commercial clients through a hybrid community/corporate bank model has led to significant growth in its commercial banking business. KeyBank expanded its commercial banking to Chicago and Southern California.

KeyCorp's executive compensation packages have been a point of contention, with some analysts arguing that they may not be in the best interest of shareholders. Special bonuses for bank executives, such as those granted by Truist, KeyCorp, and Goldman Sachs, have raised eyebrows.

The company's net interest income is expected to grow by about 20% in 2025, despite a decline in average loan balances. This growth is a key part of KeyCorp's strategy to increase profitability.

Here are some key statistics on KeyCorp's executive compensation:

Managers and Directors

Credit: youtube.com, Business Law 11.2: Corporate Governance

Let's take a closer look at the key players behind KeyCorp's corporate governance. Christopher Gorman, the CEO, has been at the helm since April 30, 2020, at the age of 64.

Clark Khayat, the Director of Finance/CFO, joined the team in March 2023 at 53 years old. Amy Brady, the Chief Tech/Sci/R&D Officer, has been with the company since April 30, 2012, at 58 years old.

Here's a list of the key directors and their roles:

Alexander Cutler, a 73-year-old Director/Board Member, has been with the company since December 31, 1999. H. Dallas, another Director/Board Member, joined the team on December 31, 2004, at 66 years old.

Frequently Asked Questions

Are KeyBank and KeyCorp the same?

KeyBank and KeyCorp are not the same, but they share a common history. KeyBank is a direct result of a 1994 merger between KeyCorp and Society Corporation, forming the contemporary organization.

Is KeyBanc the same as KeyBank?

KeyBanc and KeyBank are related but distinct entities, with KeyBanc being a trade name for KeyCorp's corporate and investment banking services. KeyBank, on the other hand, is a full-service bank offering a range of personal and business banking products.

What type of company is KeyCorp?

KeyCorp is a bank holding company that oversees various financial services. It operates primarily through its subsidiary, KeyBank National Association.

What is the $200 bonus at KeyBank?

Earn a $200 bonus cash back after spending $1,000 within the first 60 days with KeyBank. This offer is part of a promotional credit card deal with specific terms and conditions.

Matthew McKenzie

Lead Writer

Matthew McKenzie is a seasoned writer with a passion for finance and technology. He has honed his skills in crafting engaging content that educates and informs readers on various topics related to the stock market. Matthew's expertise lies in breaking down complex concepts into easily digestible information, making him a sought-after writer in the finance niche.

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