KeyCorp (KEY) | News Based Sentiment Analysis

• On July 22, 2025, KeyCorp reported a strong second quarter, exceeding analyst expectations with earnings per share (EPS) of $0.35, $0.01 higher than the anticipated $0.34. Revenue for the quarter reached $1.84 billion, surpassing the estimated $1.81 billion and demonstrating a significant 20.6% year-over-year increase – their best quarterly performance since 2022.
• Following the positive earnings report on October 2, 2025, several analysts revised their price targets for KeyCorp. Morgan Stanley notably raised its target from $20.00 to $24.00 on September 29, 2025, a 20% hike, while maintaining an "Equal-Weight" rating.
• KeyCorp director Todd J. Vasos engaged in share transactions on September 30, 2025, disposing of 35,255 common shares while simultaneously acquiring 1,738 deferred shares at $18.69 each under the KeyCorp Deferred Share Plan. This insider activity provides a glimpse into director confidence in the company's future.
• Institutional investors have been increasing their stakes in KeyCorp. CHURCHILL MANAGEMENT Corp increased its holdings by 4.2% during the second quarter, acquiring 20,500 additional shares, bringing their total ownership to 505,544 shares valued at approximately $8.8 million as of October 2, 2025. Park Avenue Securities LLC also established a new stake, purchasing 14,599 shares valued at around $254,000.
• Analysts at Wells Fargo, TD Cowen, and Evercore ISI Group all adjusted their price targets for KeyCorp on October 3, 2025. Wells Fargo raised its target to $22.00 (a 10% increase from $20.00), Evercore ISI Group also increased its target to $22.00 (a 4.76% increase from $21.00), while TD Cowen adjusted its target to $21.00 from $20.00.
• Zacks ranks KeyCorp as a "Hold" with a Zacks Rank #3 and an Earnings ESP of +2.89% as of October 3, 2025, suggesting a strong possibility of surpassing next earnings estimates, which are anticipated on October 16, 2025.
• Simply Wall St's valuation analysis, conducted on October 3, 2025, indicates that KeyCorp is currently undervalued by 35.0%, with an estimated fair share price of $28.40. The company's book value stands at $15.27 per share, with an anticipated stable book value of $16.51 per share, and an average Return on Equity of 10.33%.

The Investment Story: KeyCorp has demonstrated strong financial performance, attracting increased institutional investment and positive analyst attention, despite some mixed signals regarding price targets. The company appears undervalued based on recent analysis, suggesting potential for future growth.

What It Means for Investors: The combination of strong earnings, increasing institutional interest, and undervaluation signals a potentially attractive investment opportunity. However, the varying analyst ratings suggest caution and the need for continued monitoring of the company's performance.

Looking Ahead: Investors should closely watch KeyCorp's earnings report on October 16, 2025, to see if the company can continue to exceed expectations. Monitoring further analyst revisions and institutional activity will also be crucial.

The Bottom Line: KeyCorp presents a compelling investment case based on recent performance and valuation, but investors should remain aware of the mixed analyst sentiment and monitor upcoming earnings reports for continued positive momentum.