Is KeyCorp (NYSE:KEY) A Top Local Bank Stock?

Local bank stocks in the US have been among some of the most watched over the past few years. This is because of high interest rates, which offer banks the ability to make more money but also create risks of high costs and portfolio sustainability. Within this turmoil, local bank stock performance has been mixed. Year to date, the KBW Regional Banking Index has lost more than 7% while the Dow Jones U.S. Select Regional Banks Index gained 2%. So, we thought to look at 12 Best Local Bank Stocks to Invest in Now and in this piece we'll see if KeyCorp (NYSE:KEY) is a top local bank stock.

KeyCorp (NYSE:KEY)

KeyCorp (NYSE:KEY) is a Cleveland, Ohio based local bank. It is one of the largest such banks in the US as it employs more than sixteen thousand people. KeyCorp (NYSE:KEY) serves the needs of consumers and businesses by offering services such as debt instruments and loans.

Taking A Look At KeyCorp (NYSE:KEY)'s Recent Performance

KeyCorp (NYSE:KEY)'s first quarter of 2024 earnings report was a sight for sore eyes at least as far as annual growth is concerned. The bank reported $1.4 billion in revenue and $183 million in net income. These marked annual drops of 9.4% and 34%, respectively. KeyCorp (NYSE:KEY)'s reported earnings per share stood at $0.20 at the time of the release, which fell short of analyst estimates of $0.22. At the earnings, its CEO was careful to mention reserve capital, as he shared that KeyCorp (NYSE:KEY)'s tier one capital had grown by 1.2% annually during the quarter.

KeyCorp (NYSE:KEY) And Hedge Fund Sentiment

Shifting to hedge fund sentiment, 46 out of the 933 hedge funds had held a stake in KeyCorp (NYSE:KEY) during this year's first quarter. This marked a drop of three hedge funds, and the total stakes in Q1 2024 were valued at $745 million. This figure also saw a sequential reduction, as, during 2023's final quarter, the total value of 49 hedge fund stakes in KeyCorp (NYSE:KEY) was $1.1 billion. One of its largest shareholders was Ken Griffin's Citadel Investment Group as it owned $259 million worth of shares.

KeyCorp (NYSE:KEY) & Analyst Sentiment

The average of 19 one year analyst share price targets for KeyCorp (NYSE:KEY) is $16.49. The stock is rated Buy on average, and while May 2024 was relatively quiet in terms of analyst activity, the previous month saw several analysts share their thoughts. Among these, Wells Fargo, RBC Capital, and Keefe, Bruyette & Woods had rated KeyCorp (NYSE:KEY)'s shares as Outperform or Overweight. Wells Fargo's note increased KeyCorp (NYSE:KEY)'s share price target to $18 from $16.

Is KeyCorp (NYSE:KEY) The Best Local Bank Stock?

Looking at KeyCorp (NYSE:KEY)'s recent financial performance, it would appear that the bank leaves much to be desired before it can be declared the best local bank stock. Additionally, high interest rates, trouble in commercial real estate, and worrying credit health have raised concerns for local bank stocks as well. While revenue and earnings are one way to see if a stock is the best stock, other criteria can check whether the shares are undervalued and if there are insider purchases.

Overall, KeyCorp ranks 5th on our list the 12 Best Local Bank Stocks to Buy.

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Disclosure: None. Is KeyCorp (NYSE:KEY) A Top Local Bank Stock? was originally published on Insidermonkey.com.