KeyCorp (KEY) Corporate Insiders Sold 12 Times As Much Stock As They Acquired

The sell to buy ratio for KeyCorp (NYSE:KEY) over the past 12 months was at 2.62, pointing to bearish sentiments about the stock among corporate executives and directors. KEY recorded 12 sales transactions on the open market over the last 3 months with a sale of around 1,052,417 shares. On the other hand, purchases amounted to zero shares in that period. Looking at a longer time frame, the 52 week selling total stands at 1,741,567 shares when buyers snapped up 664,067 shares. The total signifies nearly a 2.62-to-1 sell/buy ratio.

On November 29, 2019, KeyCorp (NYSE:KEY) shares lost -0.31% or -0.06 points to close at $19.39 with a thin trading volume of 3.809 million shares. It opened the trading session at $19.42, the shares rose to $19.54 and dropped to $19.37, the range by which the price of stock traded the whole day. The company now has a market cap of $19.1 billion and currently has 983.93 million outstanding shares. KeyCorp (KEY) stock has accumulated 6.13 percent of market value in 21 trading days.

KEY stock’s trailing 3-year beta is 1.3, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.61 share in the trailing 52 weeks. The stock’s value surged 31.19 percent year to date (YTD) compared to a rise of 5.61 percent in 52 week’s period. The firm’s shares are still trading -0.56 percent below its 1-year high of $19.50 and 42 percent up from 52-week low of $13.65. The average consensus ranking on the company is 2.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

KeyCorp (KEY) is most likely going to rise 2.53 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $22-month high price target. This represents a whopping 13.46 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $20, which means a return possibility of 3.15 percent in comparison with the closing price of the stock of $19.39 on November 29. The lowest price set for the stock is $17 — just above -12.33 percent from KEY share price now.

Past records have indicated that shares in KeyCorp rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of KEY’s Q4 earnings on January 23. Analysts are predicting revenue to suffer decline of -0.3 percent to $1.65B in the financial fourth quarter, while EPS will soar by about 0 percent to $0.48 per share. In the last quarter, it earnings of $0.44 per share came worse than the $0.44224, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.63B, missing the $1.64B analysts had expected. Earnings are seen to rise by 35.5 percent this year, 13.59 percent in the coming year and the trend continues by 4.09 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at KeyCorp (NYSE:KEY) and observe the pattern. The earliest insider trade happened on 11/11/2019. Brady Amy G. parted with a total of 15.76 thousand shares of the firm at average share price of $19.27. The total amount for the sale was set at $303.62 thousand. On completing this exchange, the Chief Information Officer account balance was 95.43 thousand shares. The stock grew 0.62 percent from that insider sale. On 10/29/2019, Harris Paul N, General Counsel, did a sale of 173.78 thousand shares at a price of $18.5 per share. This got rid of 3.21 million shares from the insider’s fortune and the stock experienced a 4.81 percent rally in price since the news became public. This exchange saw 73.34 thousand shares get out from the General Counsel account.

On 10/28/2019, Director, Corporate Center Evans Trina M recorded a sale transaction valued at $465.99 thousand. The sale at $18.32 a share has eliminated 25.44 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 5.84 percent increase since the transaction reporting date. The company insider is left with 83.24 thousand shares remaining in the account. Highsmith Carlton L, who works as Director at the company, performed a sale of 9.52 thousand shares in a transaction worth $171.94 thousand. The disposal recorded on 10/24/2019 was priced at $18.07 per share. The stock price soared 7.3 percent since the transaction. Highsmith Carlton L currently holds a stake of 61.13 thousand in KEY stock which is worth $1.19 million after the insider selling.

The stock is lingering around the initial support level of $19.33. After this, the following support is at the zone of $19.26. Up until the time the KEY stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 66.32 on the daily chart, and this may be a cause for concern. In case the price goes below $19.26 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $19.5 level may cause a pull-back move approaching $19.6 mark.

KeyCorp (KEY) shares are trading at a P/E ratio of 12.1 times earnings posted in the trailing 12 months. The industry KEY deals with has an average P/E of 11.5. Its P/B ratio is standing at 1.3X compared to the 1.3 industry average. It is additionally sporting a 3.2 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.5.