Randy Paine paid more than $730,000 to purchase KeyCorp shares Wednesday
KeyCorp shares have fallen 17% over the past week amid pressure on regional-banking names, and they’ve shed nearly half of their value so far this year. The recent selloff has prompted one executive to buy up shares on the decline.
Andrew “Randy” Paine, who heads institutional banking at the Cleveland-based financial-services company, scooped up 75,000 shares of KeyCorp (KEY) on the open market Wednesday, paying an average price of $9.78 apiece, according to a Thursday filing with the Securities and Exchange Commission. He paid over $730,000 in the transaction.
Paine now owns 335,414 shares of KeyCorp directly, while owning another 41,823 indirectly through his spouse, a 401(k) plan and an entity called Paine Investments LP.
“This purchase puts Randy [well above] his share holding requirements as an officer of the bank and reflects his ongoing confidence in Key’s durable, relationship based business model and our ability to deliver for our clients and prospects throughout the economic cycle,” a KeyCorp spokesperson said in an email Thursday.
The SEC’s Edgar platform shows several transactions for Paine related to options and restricted-stock vesting going back to February 2022, but no other open-market stock purchases during the period.
Paine joins other company insiders who’ve made smaller purchases recently. Richard Hipple, a director, paid $23,452 to acquire 2,200 shares April 26, while Victor Alexander, the head of consumer banking, bought up 8,500 shares April 21 for just upwards of $100,000.
Paine’s purchase this week comes as regional-banking stocks have fallen under renewed pressure after First Republic’s sale to JPMorgan Chase & Co. (JPM) last week. Additionally, a report late Wednesday said that PacWest Bancorp (PACW) was also considering a sale, adding to concerns about the broader sector.
Though KeyCorp has seen its stock slide nearly 50% so far in 2023, that drop isn’t quite as dramatic as the selloffs in shares of PacWest (down 86%) or Western Alliance Bancorp (WAL) (down 69%).
KeyCorp posted first-quarter results April 20, with Chief Executive Chris Gorman commenting that the company’s “durable business model continues to provide stability while driving sound, profitable growth through all market conditions.” First-quarter deposits fell to $143.4 billion from $145.7 billion in the fourth quarter.