Cleveland, Ohio-based KeyCorp (KEY) operates as the holding company for KeyBank which provides various retail and commercial banking products and services. With a market cap of $18.1 billion, KeyCorp operates as one of the largest regional banking companies in the U.S.

Companies worth $10 billion or more are generally described as "large-cap stocks," KeyCorp fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regional banking industry. It provides investment management, banking, consumer finance and investment banking products to individuals as well as corporations.

Despite its strengths, KEY stock has tanked 19.3% from its two-year high of $20.04 touched on Nov. 25, 2024. Meanwhile, KEY stock has dropped nearly 6% over the past three months, performing slightly better than the iShares U.S. Regional Banks ETF’s (IAT) 7.1% decline during the same time frame.

KeyCorp has notably underperformed other regional banks over the longer time frame. KEY stock has declined 2.7% over the past six months and observed a 3.4% uptick over the past 52 weeks, notably lagging behind IAT’s 26 bps dip over the past six months and 9.2% gains over the past year.

To confirm the recent downturn, KeyCorp has traded mostly below its 50-day moving average since mid-December 2024 with some fluctuations and dropped below its 200-day moving average earlier this month.

Furthermore, KeyCorp’s stock prices plunged 3.6% after the release of its mixed Q4 results on Jan. 21. The company’s financials were adversely impacted due to the completion of its previously communicated securities portfolio repositioning. While its revenues declined 43.8% year-over-year to $865 million which missed the street’s topline expectations by a large margin, KeyCorp’s adjusted net income for the quarter increased 58.2% year-over-year to $378 million and its non-GAAP EPS of $0.38 surpassed the consensus estimates by 15.2%.

Meanwhile, KeyCorp has also underperformed its peer Truist Financial Corporation’s (TFC) 2.6% decline over the past six months and a 7.3% surge over the past 52-week period.

However, analysts remain optimistic about the stock’s prospects. Among the 20 analysts covering the KEY stock, the consensus rating is a “Moderate Buy.” Its mean price target of $19.25 suggests a 19% upside potential from current price levels.