Top 5 Stock Picks of John D. Gillespie’s Prospector Partners

In this article, we discuss the top 5 stock picks of John D. Gillespie’s Prospector Partners. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of John D. Gillespie’s Prospector Partners. 

5. KeyCorp (NYSE:KEY)

Prospector Partners’ Stake Value: $19,952,000

Percentage of Prospector Partners’ 13F Portfolio: 2.56%

Number of Hedge Fund Holders: 40

KeyCorp (NYSE:KEY) is a bank holding company that operates primarily via its subsidiary, KeyBank National Association. KeyBank offers retail and commercial banking, commercial leasing, investment management, consumer finance, commercial mortgage, and investment banking services to individual, corporate, and institutional clients. 

Gillespie’s Prospector Partners holds 922,850 shares in KeyCorp (NYSE:KEY) as of September end, valued at $19.95 million, representing 2.56% of the firm’s Q3 portfolio. At the end of the second quarter, 40 hedge funds were bullish on KeyCorp (NYSE:KEY), down from 41 in the preceding quarter. 

KeyCorp (NYSE:KEY), on October 21, posted its Q3 results. EPS in the period equaled $0.65, beating estimates by $0.08. Revenue for the quarter came in at $1.82 billion, up 8% year-over-year, beating estimates by $78.59 million. 

Wedbush analyst Peter Winter reported that Q3 earnings for KeyCorp (NYSE:KEY) were solid, credit metrics were improving, and income growth was owed to strong loan momentum. The analyst predicts a solid performance track in Q4 as well, which is why he kept an Outperform rating on KeyCorp (NYSE:KEY), raising the price target from $27 to $39 on October 22.