KeyCorp stock touches 52-week low at $13.1 amid market challenges

Published 04/04/2025, 15:58
KeyCorp stock touches 52-week low at $13.1 amid market challenges

In a challenging economic environment, KeyCorp (NYSE:KEY)’s stock has hit a 52-week low, with shares dropping to $13.1. The Cleveland-based financial services company, with a market capitalization of $14.3 billion, has faced headwinds alongside the broader banking sector, reflecting investor concerns over interest rate hikes and potential impacts on loan growth. According to InvestingPro analysis, the stock appears undervalued at current levels, with technical indicators suggesting oversold conditions. Over the past year, KeyCorp has seen its stock value decrease by 14.87%, a significant retreat from previous levels. Despite the challenges, the company maintains a robust 5.8% dividend yield and has consistently paid dividends for 54 consecutive years. This downturn mirrors the struggles many banks are experiencing as they navigate a landscape of economic uncertainty and shifting monetary policy. InvestingPro subscribers have access to 10+ additional exclusive insights and detailed analysis about KeyCorp’s financial health and future prospects.

In other recent news, KeyCorp reported its fourth-quarter 2024 earnings, which exceeded analyst expectations with an adjusted earnings per share (EPS) of $0.38, surpassing the forecasted $0.33. Despite this earnings beat, revenue fell short of expectations, coming in at $865 million compared to the anticipated $1.74 billion. This revenue shortfall contributed to investor concerns, even as the company achieved record annual adjusted EBITDA of $1.3 billion and net earnings of $487 million. In other developments, KeyCorp announced a $1 billion share repurchase program set to begin in the second half of 2025, a move that allows the company to buy back its common shares at its discretion. Citi analyst Keith Horowitz upgraded KeyCorp’s stock rating from Neutral to Buy, setting a price target of $20.00, citing the company’s strong fundamentals and limited exposure to consumer and commercial real estate lending. Horowitz also noted KeyCorp’s robust Common Equity Tier 1 (CET1) ratio of 9.8% and projected that the company’s EPS could reach approximately $2 by 2027. Additionally, KeyCorp raised its dividend by 4%, reflecting confidence in its financial stability and future growth prospects.

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