All articles tagged with #keycorp
Stanley Druckenmiller's Duquesne Family Office significantly increased its investments in US bank stocks last quarter, including major institutions like Citigroup and KeyCorp, positioning itself to benefit from a potential rally in the financial sector.
Renowned investor Warren Buffett warns against making dumb investment decisions driven by emotions like fear and greed. He emphasizes the importance of avoiding hype and focusing on reliable dividends. Two investment picks highlighted in the article are Royce Value Trust (RVT), a closed-end fund with a portfolio of companies with strong fundamentals and attractive valuations, and KeyCorp preferred shares, which offer yields of up to 7.8% from a reputable banking institution with a long operating history. The article stresses the need for diversification and a focus on steady cash flows in uncertain markets.
Despite recent drops in stock prices and high yields, the dividend prospects for regional banks such as PacWest, Zions, and KeyCorp remain stable. However, investors seeking dividends should be cautious and do their research before investing.
Despite recent drops in stock prices and high yields, regional banks such as PacWest, Zions, and KeyCorp are expected to maintain stable dividend prospects. PacWest's stock dropped following reports of possible strategic options, including a sale.
KeyCorp missed profit expectations for Q1 2019 due to higher provisions set aside to cover bad loans, despite gains from interest income. Average deposits fell 1.6% to $143.4 billion, while credit loss provisions increased to $139 million from $83 million a year ago. The recent banking crisis has prompted regional lenders to be overly cautious. KeyCorp's net interest income for the quarter jumped 8.4% to $1.1 billion, compared with $1 billion a year earlier.
The stocks of KeyCorp, Comerica, and Zions Bancorp fell after all three reported a drop in deposits and weaker-than-expected quarterly results, as regional banks sustained collateral damage from the collapse of Silicon Valley Bank. Banks that have reported so far have seen deposits drop by about 2% in the quarter, less than the 3% to 3.5% rate suggested by recent Fed data. To win more positive sentiment from investors, it may be necessary for deposit stability to continue for another quarter or two.
Pinterest gained 4.3% after UBS upgraded the social media stock to buy, while First Citizens BancShares shares popped 40% on news that it will buy around $72 billion of Silicon Valley Bank assets. Regional bank stocks were also moving higher on Monday. Caterpillar shares dropped 1.2% after Baird downgraded the machinery company to underperform. KeyCorp gained 6.8% after Citi upgraded the stock to buy from neutral, and Dish Network's shares fell 2.5% after a class-action lawsuit was announced against the company.
Shares of regional banks including KeyCorp, Comerica, and Fifth Third Bancorp are rising as part of a relief rally in the financial sector after several bank names bounced back from heavy selling pressure in recent trading sessions. The rally comes after the collapse of SVB Financial Group sparked contagion fears in the broader financials, resulting in a bank run that ultimately led to the biggest banking collapse since the 2008 financial crisis. The Fed stepped in to inject liquidity into the situation over the weekend and announced plans to create a new Bank Term Funding Program centered around protecting institutions.