KeyCorp preferred stock redemption sets the context for NYSE:KEY

KeyCorp (KEY) has notified holders that it plans to redeem all 525,000 depositary shares of its Series D preferred stock on September 15, 2026, for cash at the specified redemption price.

At a share price of $21.87, KeyCorp has seen a 7 day share price return that declined 5.08% and a 30 day share price return that declined 3.44%, while its 1 year total shareholder return of 19.85% and 3 year total shareholder return of about 13x indicate momentum has built over a longer horizon.

If this preferred stock redemption has you thinking about where else capital could work, this is a good moment to broaden your search with the 20 top founder-led companies

KeyCorp is retiring a sizeable preferred layer and has built solid multi year shareholder returns, yet those facts alone do not answer what really matters next. The key question is whether you are paying a fair price for that strength today.

Most Popular Narrative: 16% Undervalued

KeyCorp's most followed narrative anchors on a fair value of $26.02 compared with the recent $21.87 share price, which frames the preferred stock redemption against a wider repricing story.

The anticipated shift from net interest income (NII) headwinds to tailwinds due to a pivot in fixed asset repricing and the structure of swap and treasury maturities, expected to significantly enhance NII in the forthcoming quarters, impacting revenue growth positively.

Read the complete narrative. Read the complete narrative.

Want to see what sits behind that fair value for KeyCorp? The narrative leans on revenue momentum, firm profit margins and a future earnings multiple that assumes disciplined execution. The exact path is laid out in the full storyline.

Result: Fair Value of $26.02 (UNDERVALUED)

However, there are still clear brakes on the KeyCorp narrative, including higher nonperforming loans and a larger stress capital buffer. This could constrain future flexibility.

Next Steps

Given the mixed signals around KeyCorp, this is a good time to act promptly, review the full risk and reward profile, and shape your own view with the 4 key rewards and 1 important warning sign

Looking for more ideas beyond KeyCorp?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.