KeyCorp (KEY) Bears Get a Bullish Change of Heart

Looking into the technicals, KeyCorp (NYSE:KEY) has scored 100% Sell indication. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the KEY’s short-term trajectory should know that short terms indicators for the stock averaged 100% Sell with an average daily trading volume over the past 20 days at 10631920 shares. KEY stock has overall a 1% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 12525330 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 11238139 shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $16.8. Below this, the next support is placed in the zone of $16.49. Till the time, the KEY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 32.46 on daily chart, which may remain a cause for comfort. If the price breaks below $16.49 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $17.31 mark may result into a pull-back move towards $17.52 level.

KeyCorp (KEY) is projected to climb by 29.57 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $26-month high price target. This represents a whopping 51.96 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $22, which represents a return potential of 28.58 percent when compared to the closing price of the stock of $17.11 on Thursday, December 06. The lowest price target for the stock is $18 — slightly more than 5.2 percent from KEY’s current share price.

Here’s a rundown of insider trading activity for sense of KeyCorp (NYSE:KEY). The earliest insider trade took place on 11/02/2018. Highsmith Carlton L parted with a total of 6.96 thousand shares of company at average share price of $18.37. The total for the sales was set at $127.91 thousand. After this transaction, the Director account balance stood at 61.13 thousand shares. The stock lost -6.86 percent since that insider sale. On 11/02/2018, Kimble Donald R, Chf. Finance Off. & Vice Chair, purchased 5 thousand shares at a price per share of $18.55. This added 92.75 thousand shares to the insider’s fortune and the stock saw a -7.76 percent retreat in value since the news became public. This transaction left 253.85 thousand shares in the Chf. Finance Off. & Vice Chair account. On 11/01/2018, Chairman and CEO Mooney Beth E performed a purchase transaction worth $182.6 thousand. This purchase at $18.26 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -6.3 percent decrease since the transaction was reported. The insider now is left with 1.04 million shares remaining in the account. Schosser Douglas M, who performs the Chief Accounting Officer job, sold 6.05 thousand shares for $129.97 thousand. The disposal occurred on 08/16/2018 was priced at $21.49 per share. The share price plunged -20.38 percent since the reporting date. Schosser Douglas M now left with a stake of 26.51 thousand KEY stock worth $453.57 thousand after the insider selling.

KEY shares dropped -0.34 points or -1.95 percent on Thursday to $17.11 with a light trade volume of 12.538 million shares. After opening the session at $17.05, the shares went as high as $17.205 and as low as $16.69, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $17.7 billion and now has 1.04 billion shares outstanding. KeyCorp (KEY) stock has lost -7.46 percent of market value in 21 trading days.

Analysts at Nomura cut their rating on shares of KeyCorp (NYSE:KEY) from Buy to Neutral in their opinion released on November 13. Standpoint Research analysts bumped their recommendation on KEY stock from Hold to Buy in a separate flash note to investors on October 12.

KEY stock has a trailing 3-year beta of 0.99, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.56 a share in the trailing twelve months. The stock’s value has fallen -15.17 percent year to date (YTD) against a decline of -11.48 percent in 12 month’s time. The company’s shares still trade -23.62 percent away from its 1-year high of $22.40 and 3.82 percent up from 52-week low of $16.48. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of KeyCorp (KEY) are trading at a P/E ratio of 11.62 times earnings reported for the past 12 months. The industry KEY operates in has an average P/E of 18.6. Its P/E ratio went as low as 12.49X and as high as 22.77 over the 5-year span. Further, it is sporting a 3.78 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.82. 0 percent is the gross profit margin for KeyCorp and operating margin sits at 76.9 percent. Along with this, the net profit margin is 32.4 percent.

KEY will be declaring its Q4 financial results on January 17. Analysts are forecasting revenue to climb 3.3 percent to $1.65B in the next fiscal quarter, while earnings are seen soaring by nearly 42.42 percent to $0.47 per share. History has shown that shares in KeyCorp have gone up on 20 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.45 per share, in line with the $0.45, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.6B, worse than the $1.64B analysts expected. Earnings are estimated to increase by 56.4 percent this year, 10.46 percent next year and continue to increase by 9.5 percent annually for the next 5 years.