Analysts have lowered their rating for KeyCorp (KEY) to Neutral, as noted in an update from David George at Baird on February 24, 2026. With a current stock price of $21, the downgrade aligns with a price target revision of $19, sparking a conversation among investors about the bank’s immediate outlook and long-term potential.
Recent Price Action
KeyCorp’s stock has demonstrated mild fluctuations amid a generally stable environment, closing recently at $21, with a slight decline of $0.01 or -0.05%. Over the past 52 weeks, KeyCorp has seen a high of approximately $32, reflecting the challenges in the market with a current price substantially lower by 10%, and a 52-week low of $18.43. Trading volume recently averaged around 15.8 million shares, indicating sustained investor interest, even in a climate of uncertainty. The stock’s beta of 1.068 suggests a slightly higher volatility compared to the broader market, meaning investors should be prepared for variable price movements in the near future.
Historical Performance
Analyzing KeyCorp’s performance over recent months illustrates a mixed picture. The stock has risen approximately 1.39% over the past 30 days, a positive sign in what has been a volatile environment. However, in a more encouraging turn, the bank’s shares have gained 24.35% over the past quarter, suggesting stronger performance as market conditions slightly improve. Year-to-date, KeyCorp is up 18.22%, showcasing resilience amid competitive pressures. Volatility metrics reveal a weekly rate of 2.92% and a lower monthly volatility of 1.96%, indicating that while there have been fluctuations, the stock has generally stabilized in recent weeks for a more consistent investment perspective.
Earnings Analysis
In recent earnings reports, KeyCorp’s actual EPS came in at a disappointing 0.00037 compared to the estimate of 0.38, resulting in a startling earnings surprise of almost -100%. This underperformance raises concerns about the company’s ability to meet market expectations and provides insight into the bank’s current operational challenges. In the previous quarter, the bank recorded an EPS of 0.35 against an estimate of 0.346, where it managed to surprise analysts positively. However, the recent underperformance could signal larger issues that need addressing.
Analyst Consensus View
The consensus among analysts displays a cautiously optimistic sentiment toward KeyCorp. Of the total 10 ratings, four analysts recommend a Buy, five suggest Hold, and only one advises selling. The average price target rests at $22.85, indicating potential for growth from the current level, while the high target of $26 suggests some analysts are still bullish about the bank’s long-term recovery capabilities. In contrast, the low target of $18 reinforces a risk deviance that must be noted as part of the overall investment sentiment.
Stock Grading or Fundamental View
KeyCorp has earned a Stocks Telegraph Grading Score of 57, reflecting a relatively mixed outlook based on fundamental metrics. While this score suggests the company possesses some strong attributes, it may also indicate areas of weakness that could hinder its performance against sector peers. Investors should consider this score in the context of the bank’s operational stability, growth potential, and inherent risks associated with market dynamics.
Conclusion
For investors eyeing KeyCorp, the path forward appears layered with both opportunities and constraints. The recent downgrade to Neutral may prompt a more cautious approach, appealing particularly to those looking for stability rather than aggressive growth. Investors focused on long-term growth might find the current pricing reflective of potential mispricing, but they should remain aware of KeyCorp’s earning volatility and recent underperformance. In contrast, value-oriented investors may find the disparity between current pricing and analyst targets compelling, all while keeping an eye on broader economic indicators that may influence regional banks. As always, keeping abreast of financial health, market trends, and sentiment shifts will be critical for navigating potential investment in KeyCorp.