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In this article, I will feature one bank that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.

  2. The stock is sold by no insiders in the month of intensive purchasing.

  3. At least two purchasers increase their holdings by more than 10%.

KeyCorp. (NYSE:KEY) operates as the holding company for KeyBank National Association that provides various banking services in the United States.

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Insider buying during the last 30 days

Here is a table of KeyCorp's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Ruth Ann GillisDirectorOct 211,0003,500 shares+40%
Charles CooleyDirectorOct 182,0003,000 shares+200%
Edward CampbellDirectorOct 188,00014,812 shares+117.4%

There have been 11,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of KeyCorp's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
October 201311,0000
September 201300
August 201330,0000
July 201300
June 201300

There have been 41,000 shares purchased and there have been zero shares sold by insiders since June 2013.

Financials

KeyCorp reported the third-quarter financial results on October 16 with the following highlights:

Revenue$1.0 billion
Net income$229 million
Book value$11.05 per share
Tangible book value$9.92 per share

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Outlook

KeyCorp expects average loans to continue to grow year-over-year in the mid-single-digit range and net interest margin to remain relatively stable to the third-quarter level over the next few quarters.

Competition

KeyCorp's competitors include Bank of America Corporation (NYSE:BAC) and U.S. Bancorp (NYSE:USB). Here is a table comparing these three companies.

CompanyKEYBACUSB
Market Cap:11.35B155.12B69.74B
Employees:15,589247,94364,486
Qtrly Rev Growth (yoy):0.060.140.01
Revenue:4.04B80.69B17.53B
Operating Margin:0.300.200.46
Net Income:822.00M7.26B5.51B
EPS:0.930.662.97
P/E:13.5822.0712.82
PEG (5 yr expected):2.690.891.75
P/S:2.811.923.98

KeyCorp has the second-lowest P/S ratio among these three companies.

Here is a table of these competitors' insider-trading activities during the last six months.

CompanyInsider buying / sharesInsider selling / shares
BAC0619,300
USB01,635,670

Only KeyCorp has seen intensive insider buying during the past 30 days.

Conclusion

There have been three different insiders buying KeyCorp and there have not been any insiders selling KeyCorp during the last 30 days. All three of these insiders increased their holdings by more than 10%. KeyCorp has an insider ownership of 0.10%.

There are 10 analyst buy ratings, 17 neutral ratings and three sell ratings with an average price target of $12.85. KeyCorp is trading at a P/E ratio of 13.58 and a forward P/E ratio of 12.39. KeyCorp has a book value of $11.05 per share and the stock has a dividend yield of 1.74%. I believe the stock could be a good pick at the book value of $11.05 per share.

Source: Intensive Insider Buying In KeyCorp