Intensive Insider Buying In KeyCorp

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 |  About: KeyCorp (KEY), Includes: BAC, USB
by: Markus Aarnio

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.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Ruth Ann Gillis Director Oct 21 1,000 3,500 shares +40%
Charles Cooley Director Oct 18 2,000 3,000 shares +200%
Edward Campbell Director Oct 18 8,000 14,812 shares +117.4%
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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.

Month Insider buying / shares Insider selling / shares
October 2013 11,000 0
September 2013 0 0
August 2013 30,000 0
July 2013 0 0
June 2013 0 0
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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.

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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.

Company KEY BAC USB
Market Cap: 11.35B 155.12B 69.74B
Employees: 15,589 247,943 64,486
Qtrly Rev Growth (yoy): 0.06 0.14 0.01
Revenue: 4.04B 80.69B 17.53B
Operating Margin: 0.30 0.20 0.46
Net Income: 822.00M 7.26B 5.51B
EPS: 0.93 0.66 2.97
P/E: 13.58 22.07 12.82
PEG (5 yr expected): 2.69 0.89 1.75
P/S: 2.81 1.92 3.98
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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.

Company Insider buying / shares Insider selling / shares
BAC 0 619,300
USB 0 1,635,670
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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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.