North Reef Capital Management LP Makes New $253.63 Million Investment in KeyCorp $KEY

North Reef Capital Management LP bought a new position in shares of KeyCorp (NYSE:KEY) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 12,650,000 shares of the financial services provider’s stock, valued at approximately $253,632,000. KeyCorp makes up about 8.7% of North Reef Capital Management LP’s investment portfolio, making the stock its 4th largest holding. North Reef Capital Management LP owned about 1.17% of KeyCorp at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. Wellington Management Group LLP lifted its stake in KeyCorp by 90.2% in the third quarter. Wellington Management Group LLP now owns 36,370,694 shares of the financial services provider’s stock valued at $679,768,000 after buying an additional 17,245,128 shares during the last quarter. Norges Bank purchased a new position in shares of KeyCorp during the fourth quarter worth approximately $262,688,000. Eurizon Capital SGR S.p.A. purchased a new position in shares of KeyCorp during the fourth quarter worth approximately $150,843,000. AQR Capital Management LLC increased its holdings in shares of KeyCorp by 416.3% in the 4th quarter. AQR Capital Management LLC now owns 7,163,851 shares of the financial services provider’s stock valued at $147,862,000 after acquiring an additional 5,776,417 shares during the period. Finally, Deutsche Bank AG increased its holdings in shares of KeyCorp by 132.7% in the 4th quarter. Deutsche Bank AG now owns 8,259,754 shares of the financial services provider’s stock valued at $170,481,000 after acquiring an additional 4,709,698 shares during the period. 79.69% of the stock is owned by institutional investors and hedge funds.

KeyCorp Stock Down 0.4%

Shares of KeyCorp stock opened at $22.64 on Friday. KeyCorp has a one year low of $16.47 and a one year high of $24.07. The company has a market cap of $24.43 billion, a P/E ratio of 13.16, a PEG ratio of 0.74 and a beta of 1.02. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.83 and a current ratio of 0.84. The firm has a fifty day moving average of $22.47 and a two-hundred day moving average of $21.60.

KeyCorp (NYSE:KEY) last issued its earnings results on Tuesday, July 21st. The financial services provider reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.02. The business had revenue of $1.96 billion for the quarter, compared to the consensus estimate of $1.97 billion. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The business’s quarterly revenue was up 6.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.35 earnings per share. On average, analysts forecast that KeyCorp will post 1.83 earnings per share for the current year.

KeyCorp Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a $0.205 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.82 dividend on an annualized basis and a yield of 3.6%. KeyCorp’s dividend payout ratio (DPR) is presently 47.67%.

KeyCorp announced that its board has approved a stock repurchase plan on Wednesday, May 13th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the financial services provider to repurchase up to 13% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

KEY has been the subject of a number of recent research reports. Stephens initiated coverage on shares of KeyCorp in a research note on Monday, June 15th. They set an “overweight” rating and a $26.00 price target for the company. Keefe, Bruyette & Woods lifted their price objective on shares of KeyCorp from $25.00 to $26.00 and gave the company an “outperform” rating in a research note on Wednesday. Piper Sandler upped their target price on shares of KeyCorp from $23.00 to $24.00 and gave the company an “overweight” rating in a report on Friday, April 17th. Morgan Stanley raised their price target on KeyCorp from $24.00 to $25.00 and gave the stock an “equal weight” rating in a report on Monday, June 29th. Finally, DA Davidson reaffirmed a “buy” rating and set a $28.00 price objective on shares of KeyCorp in a research report on Wednesday. Thirteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $49.14.

Insider Buying and Selling

In other KeyCorp news, insider Angela G. Mago sold 22,826 shares of KeyCorp stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $21.66, for a total value of $494,411.16. Following the sale, the insider owned 281,564 shares of the company’s stock, valued at approximately $6,098,676.24. The trade was a 7.50% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.56% of the stock is currently owned by insiders.

KeyCorp Company Profile

KeyCorp is a bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank. It provides a broad range of banking and financial services to individual consumers, small businesses, middle-market companies and large corporations. KeyBank’s offerings span traditional deposit and lending products as well as more specialized financial solutions designed for commercial and institutional clients.

The company’s product and service mix includes retail banking products such as checking and savings accounts, consumer and residential mortgage lending, and auto financing.