BofA update shows where active managers are putting money
CLEVELAND - KeyCorp (NYSE: KEY), a major bank-based financial services company with a market capitalization of $16.8 billion, has disclosed its Board of Directors’ authorization of a share repurchase program. The program permits the company to buy back up to $1.0 billion of its common shares. These repurchases may occur in the open market or through privately negotiated transactions. According to InvestingPro data, the stock has delivered a total return of 8.9% over the past year, despite recent market volatility.
The share repurchase initiative is set to commence in the second half of 2025, with specific details regarding the timing and volume of shares to be repurchased remaining at KeyCorp’s discretion. Factors influencing these decisions will include market conditions, share price, regulatory requirements, corporate liquidity needs, and other operational considerations. While InvestingPro analysis indicates the company currently shows weak financial health metrics, analysts expect improved profitability and net income growth in the coming year.
This announcement comes as KeyCorp approaches its bicentennial, celebrating 200 years of providing financial services. With headquarters in Cleveland, Ohio, KeyCorp boasts assets of approximately $187 billion as of December 31, 2024. The company operates through KeyBank National Association, offering services to individuals and businesses across 15 states via nearly 1,000 branches and about 1,200 ATMs. Additionally, KeyCorp delivers corporate and investment banking solutions through KeyBanc Capital Markets. Notably, the company has maintained dividend payments for 54 consecutive years, currently offering an attractive 5.3% dividend yield.
The forward-looking statements included in the press release reflect management’s expectations for future events, subject to the accuracy of underlying assumptions and potential risks or uncertainties. KeyCorp acknowledges that actual results could materially differ from projections if assumptions are incorrect or unforeseen risks emerge. The company’s filings with the Securities and Exchange Commission (SEC), including its Form 10-K for the year ended December 31, 2024, detail the factors that might cause such discrepancies. For deeper insights into KeyCorp’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
This information is based on a press release statement from KeyCorp, which did not endorse the claims or engage in promotional language. The company’s share repurchase program is a significant financial move, and as such, it is an important development for investors and market watchers. KeyCorp will continue to provide updates in accordance with regulatory requirements and corporate disclosures.
In other recent news, KeyCorp reported its fourth-quarter 2024 earnings, exceeding analyst expectations with an adjusted earnings per share (EPS) of $0.38, compared to the forecasted $0.33. However, the company’s revenue fell significantly short of forecasts, coming in at $865 million against the anticipated $1.74 billion. Despite this revenue shortfall, KeyCorp achieved record annual adjusted EBITDA of $1.3 billion and net earnings of $487 million for the year. Additionally, the company raised its dividend by 4%, signaling confidence in its financial health.
Citi analyst Keith Horowitz upgraded KeyCorp’s stock rating from Neutral to Buy, setting a price target of $20.00. Horowitz highlighted KeyCorp’s limited exposure to consumer and commercial real estate lending and its robust Common Equity Tier 1 (CET1) ratio of 9.8% as factors that make the company a potential safe haven. The analyst also noted management’s intentions to seek board approval for reinstating a stock buyback program, which could bolster the stock’s performance. Furthermore, Horowitz projected that KeyCorp’s EPS could reach approximately $2 by 2027, suggesting the stock is trading at an appealing valuation.
These developments underline KeyCorp’s strategic initiatives and market positioning, as the company navigates through challenging market conditions while maintaining strong financial fundamentals.
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