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KeyCorp (NYSE:KEY) Shows An Increase In Insider Trading

Boston, MA 10/31/2013 (wallstreetpr) – KeyCorp (NYSE:KEY) operates as the holding company for KeyBank National Association that provides various services like investment banking products, commercial leasing and commercial banking among others. In the last one month there has been an increase in employees of the company buying shares of the company, that increases their stake in the company by more than 10% and not trading for the next thirty days.

Three of the directors of the company have increased their stakes by buying additional 1000, 2000 and 8000 shares amongst them and have increased the insider ownership to 0.10%. Trade analysts estimate that that these employees have made a good deal with the company creating a win-win situation for both by picking up the shares at $11.05.

Optimistic earnings report

In the earnings report announced on October 21, 2013 for Q3 13, the company reported revenue of $1 billion. Net operating income came close to $266 million that paid $0.29 to each shareholder. Beth Mooney, Chairman and CEO of KeyCorp, was happy with the results and stated that they had achieved the goal of securing annualized cost savings of $200 million since last June. Apart from that the good performance in the reports also reflected the improved productivity and efficiency. It is very clear that the positive earnings could have been a result of purely legal activities and that insider trading trends and news could have nothing to do with that.

Analysts’ coverage

Many analysts, from Credit Suisse, Barclays, ISI Group, have been covering the shares and have uniformly upgraded the price target. Overall, 15 of them have given a “hold” rating, while three are in favor of “sell” and 10 are in favor of “buy”. The average price target being a modest $11.78, the market price tumbled down by 13 cents on Wednesday, October 30, and now stands at $12.53.

Published by Ruchi Gupta

Swati Goyal has over 6 years of experience in financial research & analysis domain. She has built financial models varying from consumer goods to banks. She has her articles published in leading dailies of the nation

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