In a remarkable display of resilience, KeyCorp (NYSE:KEY)'s stock has surged to a 52-week high, reaching a price level of $17.21. This milestone underscores a period of robust growth for the financial services company, which has seen its stock value climb by an impressive 55.53% over the past year. Investors have shown increased confidence in KeyCorp's strategic initiatives and financial performance, propelling the stock to new heights amidst a dynamic market environment. The company's ascent to this 52-week high marks a significant turnaround and highlights its potential for continued momentum in the financial sector.
In other recent news, KeyCorp has made significant strides in its financial trajectory. The company recently sold approximately $7 billion of low-yielding investment securities, a move expected to result in an after-tax loss of around $700 million for the third quarter of 2024. In a significant strategic shift, KeyCorp also sold a nearly 15% minority stake to Scotiabank, a transaction that analysts from Jefferies and Piper Sandler anticipate will contribute approximately $400 million to KeyCorp's net interest income through 2025.
Jefferies has set earnings per share (EPS) estimates for KeyCorp at $1.08 for 2024 and $1.65 for 2025, while Piper Sandler expects a low single-digit accretion to the EPS for 2025. Meanwhile, Morgan Stanley anticipates a modest increase of 1% for 2025's EPS. These recent developments led to several adjustments from financial firms, with Jefferies increasing its price target for KeyCorp shares to $19.00 and maintaining a Buy rating, while Piper Sandler reaffirmed its Overweight rating on KeyCorp.
These are recent developments that provide insights into KeyCorp's current financial health and future prospects. Investors and stakeholders will be closely monitoring how these strategic moves impact KeyCorp's financial performance moving forward.
InvestingPro Insights
KeyCorp's journey to its 52-week high is not just a testament to its past year's performance, but also a reflection of its consistent shareholder value approach. With a market capitalization of $15.86 billion, KeyCorp stands out with a commendable track record of returning value to investors, as evidenced by its dividend history. An InvestingPro Tip highlights that KeyCorp has raised its dividend for 13 consecutive years, demonstrating a commitment to consistent shareholder returns.
Moreover, the company's stock is trading near its 52-week high, at 99.65% of this peak, which aligns with the article's focus on KeyCorp's recent price levels. The strong return of 56.57% over the last year further emphasizes the stock's impressive run. Additionally, KeyCorp's dividend yield is notably high at 4.94%, offering an attractive income stream for investors. This is particularly relevant given the current market environment where yield can be a significant factor in investment decisions.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available, including insights on KeyCorp's profitability and analysts' predictions for the company's performance in the coming year. To explore these further, visit InvestingPro for a comprehensive set of tips and metrics tailored to inform your investment strategy.
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