Zacks Investment Research downgraded shares of Capital One Financial Corporation (NYSE:COF) from a hold rating to a sell rating in a research report sent to investors on Wednesday.
According to Zacks, “Capital One’s shares have underperformed the industry in the last six months. The company surpassed the Zacks Consensus Estimate for earnings only in two of the trailing four quarters. Moreover, continuously increasing expenses (mainly due to a rise in salaries and marketing costs) are likely to hurt the company's bottom-line growth, going forward. Though a solid liquidity position and strength in the credit card and online banking businesses position it well for long term growth, the company’s asset quality is expected to remain under pressure due to losses in the auto portfolio and U.S. card business.”
A number of other analysts also recently issued reports on the stock. Keefe, Bruyette & Woods restated a buy rating and set a $106.00 price objective on shares of Capital One Financial Corporation in a report on Friday, September 15th. Morgan Stanley downgraded shares of Capital One Financial Corporation from an overweight rating to an equal weight rating and decreased their price objective for the stock from $97.00 to $83.00 in a report on Friday, September 8th. Robert W. Baird restated a hold rating and set a $84.00 price objective on shares of Capital One Financial Corporation in a report on Tuesday, September 5th. BidaskClub downgraded shares of Capital One Financial Corporation from a sell rating to a strong sell rating in a research note on Monday, August 14th. Finally, Compass Point initiated coverage on shares of Capital One Financial Corporation in a research note on Thursday, August 10th. They issued a neutral rating and a $90.00 target price for the company. Five analysts have rated the stock with a sell rating, thirteen have issued a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of Hold and an average price target of $92.19.
Shares of Capital One Financial Corporation (COF) traded down 0.71% during mid-day trading on Wednesday, hitting $81.22. 331,031 shares of the company traded hands. The firm has a 50-day moving average of $81.68 and a 200-day moving average of $82.69. The stock has a market capitalization of $39.31 billion, a price-to-earnings ratio of 11.84 and a beta of 1.22. Capital One Financial Corporation has a one year low of $69.49 and a one year high of $96.92.
Capital One Financial Corporation (NYSE:COF) last posted its quarterly earnings data on Thursday, July 20th. The financial services provider reported $1.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.90 by $0.06. Capital One Financial Corporation had a net margin of 13.32% and a return on equity of 7.92%. The business had revenue of $6.70 billion during the quarter, compared to the consensus estimate of $6.68 billion. During the same quarter last year, the company posted $1.76 earnings per share. The firm’s quarterly revenue was up 7.2% compared to the same quarter last year. On average, equities analysts predict that Capital One Financial Corporation will post $7.53 earnings per share for the current year.
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Capital One Financial Corporation announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, June 28th that authorizes the company to buyback $1.85 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 4.6% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.
In other Capital One Financial Corporation news, CEO Richard D. Fairbank sold 367,419 shares of Capital One Financial Corporation stock in a transaction that occurred on Wednesday, July 26th. The shares were sold at an average price of $87.02, for a total transaction of $31,972,801.38. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.73% of the company’s stock.
A number of institutional investors have recently made changes to their positions in COF. Capital World Investors raised its stake in shares of Capital One Financial Corporation by 2.3% during the second quarter. Capital World Investors now owns 38,396,005 shares of the financial services provider’s stock worth $3,172,278,000 after acquiring an additional 849,047 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of Capital One Financial Corporation by 1.1% during the second quarter. Vanguard Group Inc. now owns 31,789,748 shares of the financial services provider’s stock worth $2,626,469,000 after acquiring an additional 335,574 shares in the last quarter. BlackRock Inc. raised its stake in shares of Capital One Financial Corporation by 3,066.1% during the first quarter. BlackRock Inc. now owns 31,294,690 shares of the financial services provider’s stock worth $2,711,996,000 after acquiring an additional 30,306,250 shares in the last quarter. State Street Corp raised its stake in shares of Capital One Financial Corporation by 0.7% during the first quarter. State Street Corp now owns 21,864,090 shares of the financial services provider’s stock worth $1,894,742,000 after acquiring an additional 157,141 shares in the last quarter. Finally, Franklin Resources Inc. raised its stake in shares of Capital One Financial Corporation by 2.4% during the second quarter. Franklin Resources Inc. now owns 13,739,126 shares of the financial services provider’s stock worth $1,135,064,000 after acquiring an additional 322,243 shares in the last quarter. Institutional investors and hedge funds own 87.99% of the company’s stock.
Capital One Financial Corporation 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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