$KEY with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:KEY after a negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 68.75%.
KEY trade ideas
KeyCorp Surges Following $2.8 Billion Investment by ScotiabankKeyCorp (NYSE: NYSE:KEY ) saw its stock price surge by 13% after announcing a significant $2.8 billion investment from the Bank of Nova Scotia (Scotiabank). This strategic partnership, which will see Scotiabank acquire a 14.9% stake in KeyCorp, marks a pivotal moment for both institutions as they navigate the complexities of the North American banking landscape.
The Investment Details
Scotiabank’s $2.8 billion investment in KeyCorp (NYSE: NYSE:KEY ) is set to unfold in two phases. Initially, Scotiabank will inject $800 million by acquiring approximately 47 million shares by the end of the month. The second phase, contingent on regulatory approval from the Federal Reserve and other bodies, will see Scotiabank invest an additional $2 billion to acquire a further 116 million shares, expected to close by Q1 2025.
KeyCorp CEO Chris Gorman described the investment as a "unique opportunity to raise capital on attractive terms." The fixed purchase price of $17.17 per share represents a 17.5% premium to KeyCorp’s closing price of $14.61 on the Friday before the announcement. This premium reflects the confidence Scotiabank has in KeyCorp’s future potential, particularly in the face of an evolving financial landscape.
Strategic Implications for KeyCorp
For KeyCorp (NYSE: NYSE:KEY ), the investment provides more than just a capital boost—it offers strategic flexibility and an accelerated pathway to growth. Despite expressing comfort with its current capital position, Gorman emphasized that this investment allows KeyCorp to expedite its capital and earnings improvement plans, positioning the bank to capitalize on growth opportunities more aggressively.
"This partnership with Scotiabank strengthens our capacity for growth, enabling additional investments in our franchise and increasing our strategic agility," Gorman stated. The infusion of capital will empower KeyCorp to pursue further expansion in key areas such as investment banking, payments, and wealth management. This is particularly significant given the uncertain economic environment, where financial institutions must be nimble and proactive.
Scotiabank’s Strategic Vision
For Scotiabank, this acquisition represents a strategic expansion into the U.S. market, complementing its existing presence across Canada, the U.S., and Mexico. By acquiring a significant stake in KeyCorp, Scotiabank enhances its position as one of the top foreign banking organizations in the U.S., with a robust Global Banking and Markets business.
Scott Thomson, President and CEO of Scotiabank, highlighted the long-term benefits of the investment: "This transaction provides attractive near-term returns to our shareholders and creates future optionality for Scotiabank in the North American corridor." The partnership is expected to open doors for mutually beneficial strategic connections, particularly in areas where the two banks’ operations complement each other.
Market Reaction and Future Outlook
The market responded positively to the announcement, with KeyCorp (NYSE: NYSE:KEY ) shares reaching levels not seen since early 2023. However, Scotiabank’s shares experienced a slight dip, reflecting the typical market response to large-scale investments. Analysts suggest that while the initial cost to Scotiabank may have caused a temporary decline, the long-term benefits of this strategic investment far outweigh the short-term market reaction.
Looking ahead, KeyCorp (NYSE: NYSE:KEY ) is poised to leverage its strengthened financial position to explore new growth avenues. The bank’s ability to execute its capital and earnings improvement strategy more rapidly positions it favorably in the competitive U.S. banking sector.
As regulatory approvals are anticipated by early 2025, both KeyCorp (NYSE: NYSE:KEY ) and Scotiabank are likely to engage in further strategic discussions, exploring how best to integrate their operations and capitalize on the synergies this partnership presents. The potential for growth in investment banking, payments, and wealth management, combined with Scotiabank’s international reach, could set the stage for significant developments in the years to come.
Conclusion
The $2.8 billion investment by Scotiabank in KeyCorp (NYSE: NYSE:KEY ) is more than just a financial transaction; it’s a strategic alliance that could reshape the North American banking landscape. With KeyCorp now armed with increased capital and strategic agility, and Scotiabank expanding its footprint in the U.S. market, both banks are well-positioned to navigate the challenges and opportunities ahead. As this partnership unfolds, investors will be keenly watching how these two financial giants capitalize on this unique opportunity to drive growth and create value for their shareholders.
KEY KeyCorp Options Ahead of Earnings If you haven`t sold KEY before the selloff:
Now analyzing the options chain and the chart patterns of KEY KeyCorp prior to the earnings report this week,
I would consider purchasing the 15usd strike price Puts with
an expiration date of 2024-8-16,
for a premium of approximately $0.21.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
KEY KeyCorp Options Ahead of EarningsLooking at the KEY KeyCorp options chain ahead of earnings , I would buy the $14 strike price Puts with
2023-6-16 expiration date for about
$0.27 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.
RiskMastery's Breakout Stocks - KEY EditionWelcome to RiskMastery's Breakout Stocks - Stocks with breakout potential.
In this edition, we'll be looking at NYSE:KEY ...
I believe this code is at a point of potential volatility.
If price can hold above $14.20 ... Bullish potential may be unlocked.
My key upside targets include:
- $15.16 (Conservative)
- $16.40 (Medium)
- $19.25 (Aggressive)
If however price falls below $12.51 ... Bearish risk potential may be unlocked.
(My key risk targets - C, M,& A - are as noted on the chart)
Enjoy, and I look forward to being of further service into the future.
If you'd like to connect, feel free to reach out and comment below.
Mr RM | Risk Mastery
Disclaimer:
This post is intended for educational purposes only - Publicly available RiskMastery information & content is not intended to be financial advice in any shape or form. Please do your own research and seek advice from a licensed professional before acting on any of the information contained within this post. This post is not a solicitation or recommendation to buy, sell or hold any positions in any financial instrument. All demonstrated trades are merely incidental to the educational training RiskMastery aims to provide. You are solely responsible for your own investment and trading decisions, of which should be made only according to your own opinion, knowledge and experience. You should not rely on any of the information contained on this site or contained in any RiskMastery material on any website or platform. You assume the sole risk of any trade or investment you elect to make. RiskMastery and affiliates shall not be liable to you for any monetary losses or any other damages incurred directly or indirectly, from your use, reliance or reference of RiskMastery materials, content and educational information. Thank you for your understanding and cooperation - We look forward to working with you into the future to navigate the fine line of trading and investment success.
KEY KeyCorp Options Ahead of EarningsIf you haven`t sold KEY here:
Then analyzing the options chain and the chart patterns of KEY KeyCorp prior to the earnings report this week,
I would consider purchasing the 16usd strike price Calls with
an expiration date of 2024-7-19,
for a premium of approximately $0.78.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
KEY - Quick Chart ReadingHowdy Traders!
In this quick chart reading, we will be looking at $KEY. A large support (white) and a resistance (orange) was created. As of now, NYSE:KEY has broken through the top resistance (orange). The plan for this trade would be as follows. If NYSE:KEY successfully rebounds at the orange resistance level, it may then be a great bullish push towards the $14.45 level. However, if it shows a weakening, and it falls right through the orange, then it may head towards $6.45. If NYSE:KEY does break downwards, then it is important to know that there is buying support at the $9.00 to $9.25 area. Not only that, but NYSE:KEY has an upcoming earnings report which could affect this plan.
Bona Fortuna!
On the rise $KEY #KEYWith two continuous week chart candles in the green, and previous this months green candle, NYSE:KEY is giving a key so where it's headed.
KEY Breaking out of down trend channel?KEY was locked in a down trend and looks like it could be breaking out!
KEYCORP Stock Chart Fibonacci Analysis 051423Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 9/61.80%
KEY - Likes Megaphones A larger and a smaller megaphone or broadening wedge structure
These are relatively bullish structures and with price tapping on the strong support in green a buy is possible.
Not the most bullish chart but definitely an interesting one.
KEYCORP Stock Chart Fibonacci Analysis 041623Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 12.7/61.80%
$KEY with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $KEY after a Negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 66.67%.
$KEY with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $KEY after a Negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 63.64%.
$KEY with a Bearish outlook following its earnings #Stocks The PEAD projected a Bearish outlook for $KEY after a Positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 60%.
inverse H&S or Cup&HandleNot sure which just which pattern it is but looks bullish and ready to explode. Loading Calls
KEY Breakout to upsideRecent interest rate spikes have attracted above normal investment into financials. Key has broken above its ascending channel and should experience smooth sailing until bumping up on the next major resistance level at 28.40. I definitely like the technical setup here, additionally I'm looking for increased trading volume and strong earnings to carry Key all the way up to 34 dollars a share.
KEY breakout confirmedBreakout has been confirmed for KEY! Time to long, stop-loss 19.00
Risk Consideration
Note that all financial or investment instruments or products involve the risk of loss and may not be suitable for many members of the public. The User should familiarize himself with the fees, commission costs and other charges of any financial transaction and consider taking proper advice or guidance from an independent financial adviser or other qualified professional before purchasing or trading in financial products and investments.
KEY Breakout WatchKEY trading within a pennant and taking support on 1HR 100EMA. Not a bad time to enter with a stop loss just under 3%
Will KEY Unlock its Trading Channel?KEY is at the top of its most reliable trading channel, on lower overall volume, and well above its 50 EMA and 200 EMA. It's been essentially trendless for the last 13 trading days. Given these indicators, I think it will go down. I have no idea how much or when.
This is NOT trading advice.
I'm brand new to this. I'm recording ideas for myself. Please do not listen to me.
Big Potential for KEYCORP Hey guys, KEYCORP is in a bullish movement with a water-carrying candle shape followed by a bullish leg and strong buy volume executed. Looking at the TIMEFRAME M1 we notice a large hammer candle with a large volume of purchase issued. It goes to the top of the bollinger to test it to reach the top of the comfort zone and check it. There is a good chance of breaking the price with the momentum then then the zone to go on the next one and land on the high afterwards. Then then without comes the test of the top of the bullish channel to reach the top of the comfort zone to check it.
Please LIKE & FOLLOW, thank you!
Key corp. gonna advance?KeyCorp the US bank, has a clear Elliot wave pattern in place. Looks like wave 5 is about to set foot. Buy at market. First target 17.40$ which is 100% of Wave 1 (since wave 3 is extended), second target is at 18.50$. A close below 15.25$ will invalidate the scenario. Remember not to risk more than 2% of your capital.
