KeyCorp (KEY): Spotting Value From Recent Insider Activity

The surge in insider buying at KeyCorp (NYSE:KEY) is picking up steam with the current sell/buy ratio now at 0.58. KEY recorded 3 sales on the open market in the last three months. They sold nearly 8,643 shares while purchases amounted to 15,000 shares that period. Looking even further back to 12 months, corporate insiders offloaded 1,067,582 shares when buyers snapped up 510,510 shares. The 12-month’s totals signify about a 2.09-to-1 sell/buy ratio.

Highsmith Carlton L parted with a total of 6.96 thousand shares of KeyCorp (KEY) at average share price of $18.37. This insider trade in the company took place on 11/02/2018. 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 -13.12 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 -13.96 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 -12.6 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 -25.73 percent since the reporting date. Schosser Douglas M now left with a stake of 26.51 thousand KEY stock worth $423.08 thousand after the insider selling.

The 12-month median price target for KeyCorp (KEY) assigned by the analysts stands at $19, which represents a return potential of 19.05 percent when compared to the closing price of the stock of $15.96 on Friday, January 11. The lowest price target for the stock is $13 — slightly more than -18.55 percent from KEY’s current share price. The stock will probably climb 24.06 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 62.91 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 52.1 on daily chart, which may remain a cause for concern. If the price breaks below $15.5 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $16.14 mark may result into a pull-back move towards $16.32 level. The stock is currently hovering around the first support level of $15.73. Below this, the next support is placed in the zone of $15.5. Till the time, the KEY stock trades above this level, bulls have nothing to fear.

Shares of KeyCorp (KEY) are trading at a P/E ratio of 18.8 times earnings reported for the past 12 months. The industry KEY operates in has an average P/E of 19.01. Its P/E ratio went as low as 9.71X and as high as 22.77 over the 5-year span. Further, it is sporting a 3.52 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.73. 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.

On 11th of January, KeyCorp (NYSE:KEY) shares ended higher after a volatile session. The shares accumulated 0.16 points or 1.01 percent at $15.96 with a light trade volume of 8.382 million shares. After opening the session at $15.83, the shares went as high as $16.09 and as low as $15.68, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $16.5 billion and now has 1.04 billion shares outstanding. KeyCorp (KEY) stock has gained 0.25 percent of market value in 21 trading days.

KEY stock has a trailing 3-year beta of 1.16, offering the possibility of a higher rate of return, but also posing more 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 surged 7.98 percent year to date (YTD) against a decline of -24.04 percent in 12 month’s time. The company’s shares still trade -28.75 percent away from its 1-year high of $22.40 and 16.88 percent up from 52-week low of $13.65. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.