KeyCorp's 0.85B Volume Ranks 156th as Stock Climbs 11.8% YTD Amid Sector Lags

On July 31, 2025, KeyCorp (KEY) closed with a 1.32% decline, trading at a volume of $0.85 billion, ranking 156th in market activity for the day. The regional bank, headquartered in Cleveland, Ohio, has shown mixed performance against broader market benchmarks, trailing the S&P 500’s 17% gain and the Financial Select Sector SPDR Fund’s 20.2% return over the past 52 weeks. Despite a 11.8% rise in its stock price year-to-date, it remains under pressure amid rising expenses and evolving market dynamics.

KeyCorp’s second-quarter 2025 results highlighted a 40% year-over-year EPS increase to $0.35, driven by a 20.9% surge in total revenue to $1.8 billion. Strong net interest income and a 10% growth in non-interest revenue, particularly from fee-based businesses, supported investor sentiment. However, analysts remain cautious, with Truist recently raising the price target to $19 while maintaining a “Hold” rating. The stock currently trades below the mean analyst price target of $19.90, leaving room for a potential 21.1% upside if it reaches the Street-high target of $22.

Analyst consensus remains cautiously optimistic, with 23 coverage firms assigning a “Moderate Buy” rating. Ten analysts advocate a “Strong Buy,” while 11 recommend a “Hold.” Earnings surprises have been positive in four consecutive quarters, and the company’s improved capital ratios and sequential loan growth have offset concerns over rising operational costs. Despite these fundamentals, the stock’s underperformance against sector peers underscores lingering challenges in scaling profitability amid a competitive financial landscape.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day returned 166.71% from 2022 to the present, outperforming the benchmark’s 29.18% gain. This outperformance, attributed to liquidity-driven momentum, highlights the role of high-volume stocks like KeyCorp in capturing short-term market opportunities. However, the strategy’s reliance on evolving market dynamics suggests future returns may vary as liquidity patterns shift.