Capital One Financial (COF) Cut to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Capital One Financial (NYSE:COF) from a buy rating to a hold rating in a research note issued to investors on Wednesday.

According to Zacks, “Capital One’s shares have underperformed the industry so far this year. Yet, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. A strong liquidity position, strength in its credit card and online banking businesses, higher interest rates and solid loan balance will aid growth further. Moreover, benefits from lower tax rates and restructuring initiatives will support financials. However, mounting operating expenses are likely to hurt bottom-line growth to some extent. Also, deteriorating asset quality remains a major concern for the company.”

Other analysts have also recently issued research reports about the stock. Citigroup cut their price target on shares of Capital One Financial from $110.00 to $105.00 and set a buy rating on the stock in a report on Thursday, November 1st. Barclays reiterated a buy rating on shares of Capital One Financial in a report on Monday, October 29th. Oppenheimer set a $116.00 price target on shares of Capital One Financial and gave the company a buy rating in a report on Tuesday, September 18th. UBS Group cut their price target on shares of Capital One Financial from $116.00 to $113.00 and set a buy rating on the stock in a report on Tuesday, August 7th. Finally, Sandler O’Neill lifted their price target on shares of Capital One Financial from $113.00 to $115.00 and gave the company a buy rating in a report on Wednesday, October 24th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and fifteen have issued a buy rating to the company’s stock. The stock has a consensus rating of Buy and a consensus price target of $109.14.

Shares of NYSE COF opened at $82.67 on Wednesday. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 1.02. Capital One Financial has a 52 week low of $81.85 and a 52 week high of $106.50. The firm has a market capitalization of $40.08 billion, a P/E ratio of 10.61, a PEG ratio of 0.68 and a beta of 1.26.

Capital One Financial (NYSE:COF) last issued its earnings results on Tuesday, October 23rd. The financial services provider reported $3.12 EPS for the quarter, topping the consensus estimate of $2.89 by $0.23. Capital One Financial had a net margin of 11.84% and a return on equity of 11.01%. The company had revenue of $6.96 billion for the quarter, compared to the consensus estimate of $6.88 billion. During the same period in the previous year, the firm earned $2.42 earnings per share. The firm’s revenue for the quarter was down .3% on a year-over-year basis. On average, analysts anticipate that Capital One Financial will post 11.38 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Friday, November 23rd. Stockholders of record on Monday, November 12th were issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.94%. The ex-dividend date was Thursday, November 8th. Capital One Financial’s dividend payout ratio (DPR) is presently 20.54%.

Several hedge funds have recently made changes to their positions in the company. Mutual of America Capital Management LLC boosted its holdings in shares of Capital One Financial by 0.8% during the 2nd quarter. Mutual of America Capital Management LLC now owns 62,630 shares of the financial services provider’s stock valued at $5,756,000 after buying an additional 515 shares in the last quarter. River Wealth Advisors LLC boosted its holdings in shares of Capital One Financial by 4.5% during the 3rd quarter. River Wealth Advisors LLC now owns 13,414 shares of the financial services provider’s stock valued at $1,273,000 after buying an additional 575 shares in the last quarter. SRS Capital Advisors Inc. boosted its holdings in shares of Capital One Financial by 29.2% during the 2nd quarter. SRS Capital Advisors Inc. now owns 2,667 shares of the financial services provider’s stock valued at $245,000 after buying an additional 602 shares in the last quarter. Oppenheimer & Co. Inc. boosted its holdings in shares of Capital One Financial by 9.8% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 6,919 shares of the financial services provider’s stock valued at $657,000 after buying an additional 615 shares in the last quarter. Finally, Oppenheimer Asset Management Inc. boosted its holdings in shares of Capital One Financial by 2.5% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 26,491 shares of the financial services provider’s stock valued at $2,433,000 after buying an additional 641 shares in the last quarter. Hedge funds and other institutional investors own 88.35% of the company’s stock.

Capital One Financial Company Profile

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking.

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