Capital One Financial (NYSE:COF) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Thursday. The firm currently has a $111.00 price target on the financial services provider’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 11.63% from the stock’s current price.
According to Zacks, “Capital One’s shares have outperformed the industry in the last six months. The company surpassed the Zacks Consensus Estimate for earnings only in two of the trailing four quarters. A solid liquidity position and strength in the credit card and online banking businesses position it well for long term growth. The acquisition of Cabela's credit card portfolio further supports the company's prospects. Further, its efficient capital deployment activities should continue to boost investor confidence. However, mounting operating expenses and deteriorating asset quality will likely to keep the company’s bottom line under pressure in the near term.”
Other equities analysts have also issued research reports about the stock. Morgan Stanley lowered shares of Capital One Financial from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $97.00 to $83.00 in a report on Friday, September 8th. Keefe, Bruyette & Woods reiterated a “buy” rating and issued a $106.00 price target on shares of Capital One Financial in a research note on Friday, September 15th. Piper Jaffray Companies assumed coverage on shares of Capital One Financial in a research report on Thursday, September 21st. They issued an “underweight” rating and a $81.00 price target for the company. Buckingham Research assumed coverage on shares of Capital One Financial in a research note on Monday, October 2nd. They set a “buy” rating and a $99.00 price target on the stock. Finally, BMO Capital Markets reaffirmed a “buy” rating and set a $116.00 price target on shares of Capital One Financial in a research note on Friday, October 6th. Two equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating and twelve have given a buy rating to the company’s stock. Capital One Financial presently has an average rating of “Hold” and a consensus target price of $100.95.
Capital One Financial (COF) traded down $0.17 during midday trading on Thursday, hitting $99.44. 2,323,600 shares of the company’s stock were exchanged, compared to its average volume of 1,993,600. The company has a market capitalization of $48,200.00, a PE ratio of 13.95, a PEG ratio of 1.39 and a beta of 1.28. Capital One Financial has a 12-month low of $76.05 and a 12-month high of $101.43. The company has a current ratio of 1.07, a quick ratio of 1.06 and a debt-to-equity ratio of 1.17.
Capital One Financial (NYSE:COF) last posted its earnings results on Tuesday, October 24th. The financial services provider reported $2.42 earnings per share for the quarter, topping analysts’ consensus estimates of $2.15 by $0.27. Capital One Financial had a net margin of 13.34% and a return on equity of 8.25%. The firm had revenue of $6.99 billion for the quarter, compared to analysts’ expectations of $6.81 billion. During the same quarter in the previous year, the firm posted $2.03 earnings per share. The company’s revenue was up 8.1% on a year-over-year basis. analysts expect that Capital One Financial will post 7.97 EPS for the current year.
Capital One Financial announced that its Board of Directors has initiated a stock repurchase program on Tuesday, December 26th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.
In other news, Director Mayo A. Shattuck III sold 24,167 shares of Capital One Financial stock in a transaction on Friday, October 27th. The stock was sold at an average price of $92.71, for a total transaction of $2,240,522.57. Following the transaction, the director now owns 59,613 shares in the company, valued at approximately $5,526,721.23. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Ann F. Hackett sold 11,055 shares of Capital One Financial stock in a transaction on Wednesday, October 25th. The stock was sold at an average price of $91.18, for a total value of $1,007,994.90. Following the transaction, the director now owns 69,066 shares in the company, valued at approximately $6,297,437.88. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 378,192 shares of company stock worth $36,581,362. 1.73% of the stock is currently owned by corporate insiders.
Institutional investors and hedge funds have recently modified their holdings of the stock. BB&T Investment Services Inc. purchased a new stake in Capital One Financial in the 2nd quarter valued at about $108,000. Seven Eight Capital LP grew its position in Capital One Financial by 16.7% in the 2nd quarter. Seven Eight Capital LP now owns 1,400 shares of the financial services provider’s stock valued at $116,000 after acquiring an additional 200 shares in the last quarter. Bronfman E.L. Rothschild L.P. grew its position in Capital One Financial by 47.1% in the 2nd quarter. Bronfman E.L. Rothschild L.P. now owns 1,652 shares of the financial services provider’s stock valued at $137,000 after acquiring an additional 529 shares in the last quarter. Westside Investment Management Inc. grew its position in Capital One Financial by 48.0% in the 2nd quarter. Westside Investment Management Inc. now owns 1,745 shares of the financial services provider’s stock valued at $143,000 after acquiring an additional 566 shares in the last quarter. Finally, Verity Asset Management Inc. acquired a new position in Capital One Financial in the 3rd quarter valued at about $208,000. Hedge funds and other institutional investors own 88.33% of the company’s stock.
Capital One Financial Company Profile
Capital One Financial Corporation is a diversified financial services holding company. The Company, along with its subsidiaries, offers a range of financial products and services to consumers, small businesses and commercial clients through branches, the Internet and other distribution channels. The Company’s segments include Credit Card, Consumer Banking, Commercial Banking and Other.
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