Carlton L. Highsmith, a director at KeyCorp (NYSE:KEY), recently sold a total of 9,000 common shares of the company, according to a filing submitted to the Securities and Exchange Commission. The shares were sold at a price of $17.14 each, amounting to a total transaction value of $154,260. Following this sale, Highsmith holds 37,864 shares in the company.
In other recent news, KeyCorp reported a 7% quarter-over-quarter increase in net interest income during its Third Quarter 2024 Earnings Call. The company also announced plans for regulatory approval of Scotiabank (TSX:BNS)'s $2.8 billion minority investment by Q1 2025. In the face of rising non-performing loans in their commercial real estate portfolios, KeyCorp and Fifth Third Bancorp (NASDAQ:FITB) are grappling with the ongoing trend of remote work. Analysts from DA Davidson and RBC Capital Markets have both raised their stock price targets for KeyCorp, citing strong growth prospects. DA Davidson increased its target to $20.00 from $19.00, maintaining a Buy rating, while RBC Capital Markets raised its price target from $17 to $18, maintaining an Outperform rating. Despite these positive projections, Citi downgraded KeyCorp to Neutral, suggesting that the company's current valuation appears relatively full. These are recent developments that investors should keep in mind.
InvestingPro Insights
As KeyCorp's director Carlton L. Highsmith reduces his stake, investors might be interested in additional context provided by InvestingPro data. KeyCorp's market capitalization stands at $18.93 billion, reflecting its significant presence in the financial sector. The company's stock has shown remarkable performance recently, with a 15.77% return over the past week and an impressive 87.3% return over the last year.
These strong returns align with two InvestingPro Tips: KeyCorp has demonstrated a significant return over the last week and a high return over the last year. This positive momentum could be a factor for investors to consider alongside the director's recent share sale.
It's worth noting that KeyCorp has maintained dividend payments for 53 consecutive years, showcasing its commitment to shareholder returns. The current dividend yield stands at 4.11%, which may be attractive to income-focused investors.
However, potential investors should be aware that KeyCorp is trading at a high earnings multiple, with a P/E ratio of 3,830. This valuation metric suggests that the stock may be priced at a premium relative to its earnings.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 12 more tips available for KeyCorp, providing a deeper understanding of the company's financial health and market position.
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