KeyCorp (NYSE:KEY) insiders sold US$1.5m worth of stock last year which shareholders may not want to overlook

By
Simply Wall St
Published
March 21, 2022
NYSE:KEY
Source: Shutterstock

While KeyCorp (NYSE:KEY) shareholders have had a good week with the stock up 4.4%, they shouldn't let their guards down. Although prices were relatively low, insiders chose to sell US$1.5m worth of stock in the past 12 months. This could be a sign of impending weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for KeyCorp

KeyCorp Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Information Officer & Executive VP, Amy Brady, sold US$281k worth of shares at a price of US$24.18 per share. So what is clear is that an insider saw fit to sell at around the current price of US$23.93. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year KeyCorp insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:KEY Insider Trading Volume March 21st 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders at KeyCorp Have Sold Stock Recently

The last quarter saw substantial insider selling of KeyCorp shares. In total, insiders dumped US$361k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does KeyCorp Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. KeyCorp insiders own 0.6% of the company, currently worth about US$126m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At KeyCorp Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that KeyCorp is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that KeyCorp is showing 2 warning signs in our investment analysis, and 1 of those is significant...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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