KeyCorp (NYSE:KEY)'s shares soared to a 52-week high of $17.39, marking a significant milestone for the Cleveland-based bank. This peak reflects a remarkable 64.83% surge in the stock's value over the past year, showcasing the company's strong performance and investor confidence. The financial institution has been riding a wave of positive momentum, bolstered by strategic initiatives that have resonated well with both customers and shareholders. The 52-week high serves as a testament to KeyCorp's robust growth trajectory and its potential for continued success in the competitive banking sector.
In other recent news, KeyCorp's financial outlook for 2025 appears promising with Citi forecasting a 20% year-over-year increase in Net Interest Income (NII). The firm has also raised its earnings per share (EPS) estimates for KeyCorp to $1.55 for 2025 and $1.85 for 2026. Similarly, Piper Sandler has confirmed its Overweight rating on KeyCorp, maintaining a steady price target of $18.00. The firm's projections include a significant increase in NII for 2025, based on the bank's recent strategic moves.
KeyCorp has made substantial shifts in its financial portfolio, selling approximately $7 billion of low-yielding investment securities. This decision is expected to result in an after-tax loss of about $700 million for the third quarter of 2024. Additionally, KeyCorp recently sold a nearly 15% minority stake to Scotiabank, which analysts anticipate will contribute approximately $400 million to KeyCorp's net interest income through 2025.
These recent developments have led to several adjustments from financial firms, including Jefferies increasing its price target for KeyCorp shares to $19.00 and maintaining a Buy rating. Morgan Stanley expects a modest increase of 1% for 2025's EPS. These adjustments reflect the market's response to KeyCorp's strategic decisions and provide insights into the company's current financial health and future prospects.
InvestingPro Insights
KeyCorp's recent achievement of a 52-week high is further supported by real-time data from InvestingPro. The stock's impressive 69.01% total return over the past year aligns closely with the article's reported 64.83% surge, confirming the strong upward trend. Currently trading at 99.77% of its 52-week high, KeyCorp's stock continues to demonstrate robust momentum.
InvestingPro Tips highlight that KeyCorp has maintained dividend payments for an impressive 53 consecutive years, underscoring its commitment to shareholder value. This long-standing dividend history is particularly noteworthy in the context of the banking sector's volatility. Additionally, with a current dividend yield of 4.87%, KeyCorp offers an attractive income proposition for investors.
The company's P/E ratio of 21.79 and Price to Book ratio of 1.3 suggest that while the stock has seen significant appreciation, it may still offer value compared to some peers in the banking sector. However, investors should note that 8 analysts have revised their earnings downwards for the upcoming period, which may indicate some near-term challenges.
For those seeking a deeper dive into KeyCorp's financials and prospects, InvestingPro offers 14 additional tips, providing a comprehensive analysis to inform investment decisions.
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