KeyCorp Stock Reaches 52-Week High of $17.39 Driven by Strong Growth

KeyCorp recently achieved a 52-week high of $17.39, marking a significant milestone for the Cleveland-based bank. This peak represents an impressive 64.83% increase in the stock’s value over the past year, highlighting the company’s strong performance and investor confidence. The bank has gained momentum through strategic initiatives that have resonated well with customers and shareholders alike. This high point serves as a testament to KeyCorp’s robust growth trajectory and its potential for continued success in a competitive banking landscape.

Looking ahead, KeyCorp’s financial outlook for 2025 appears optimistic, with projections of a 20% year-over-year increase in Net Interest Income (NII) from Citi. The firm has also raised its earnings per share (EPS) estimates for KeyCorp to $1.55 for 2025 and $1.85 for 2026. Additionally, Piper Sandler has reaffirmed its Overweight rating on the bank, maintaining a price target of $18.00 while forecasting significant NII growth for 2025, influenced by the bank’s recent strategic actions.

KeyCorp has made considerable adjustments to its financial portfolio, including the sale of approximately $7 billion in low-yielding investment securities. This decision is expected to lead to an after-tax loss of about $700 million in the third quarter of 2024. Furthermore, KeyCorp recently sold a nearly 15% minority stake to Scotiabank, which analysts predict will contribute around $400 million to KeyCorp’s net interest income through 2025.

These developments have prompted several financial firms to adjust their outlooks, with Jefferies raising its price target for KeyCorp shares to $19.00 and maintaining a Buy rating. Meanwhile, Morgan Stanley anticipates a modest 1% increase in EPS for 2025. These adjustments reflect the market’s response to KeyCorp’s strategic decisions and provide insights into the company’s current financial health and future prospects.

KeyCorp’s achievement of a 52-week high is further supported by real-time data, with an impressive 69.01% total return over the past year, closely aligning with the reported surge. The stock is currently trading at 99.77% of its 52-week high, indicating strong momentum.

Notably, KeyCorp has maintained dividend payments for an impressive 53 consecutive years, emphasizing its commitment to shareholder value, especially amid the volatility in the banking sector. With a current dividend yield of 4.87%, KeyCorp presents an attractive income opportunity for investors.

The company’s P/E ratio of 21.79 and Price to Book ratio of 1.3 suggest that although the stock has experienced significant appreciation, it may still offer value relative to some peers within the banking sector. However, it’s essential to consider that eight analysts have revised their earnings estimates downwards for the upcoming period, indicating potential near-term challenges.

For those interested in a more detailed analysis of KeyCorp’s financial performance and future prospects, additional insights are available to enhance investment decisions.