Citigroup Issues Pessimistic Forecast for Capital One Financial (NYSE:COF) Stock Price

Key Points

• Citigroup lowered its Capital One Financial price target from $295 to $280, implying roughly 42% upside from the stock’s $196.65 opening price. Despite the cut, analysts collectively maintain a “Moderate Buy” consensus with an average target of $258.50.
• Capital One reported strong quarterly results, with earnings of $5.81 per share versus the $4.79 consensus estimate and revenue of $15.83 billion, up 26.9% year over year.
• Insiders sold 33,850 shares worth approximately $7.2 million over the past 90 days, while institutional investors own a substantial 89.84% of the company’s outstanding stock.

Capital One Financial (NYSE:COF) had its target price lowered by equities researchers at Citigroup from $295.00 to $280.00 in a report issued on Tuesday. Citigroup's price target would suggest a potential upside of 42.38% from the company's current price.

Other research analysts have also recently issued research reports about the company. Wall Street Zen cut Capital One Financial from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Bank of America reduced their price target on Capital One Financial from $234.00 to $231.00 and set a "buy" rating for the company in a report on Thursday, July 9th. Barclays dropped their price target on shares of Capital One Financial from $242.00 to $240.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft set a $245.00 price objective on shares of Capital One Financial in a research report on Thursday, August 20th. Finally, Piper Sandler lifted their target price on shares of Capital One Financial from $254.00 to $260.00 and gave the stock an "overweight" rating in a report on Monday. Twenty-one equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Capital One Financial currently has a consensus rating of "Moderate Buy" and a consensus price target of $258.50.

Capital One Financial Trading Up 0.1%

Shares of NYSE COF opened at $196.65 on Tuesday. Capital One Financial has a 1 year low of $174.24 and a 1 year high of $259.64. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a 50-day moving average of $211.85 and a 200 day moving average of $198.90. The stock has a market cap of $120.64 billion, a P/E ratio of 12.17, a price-to-earnings-growth ratio of 0.72 and a beta of 1.02.

Capital One Financial (NYSE:COF - Get Free Report) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $5.81 earnings per share for the quarter, beating analysts' consensus estimates of $4.79 by $1.02. Capital One Financial had a net margin of 13.37% and a return on equity of 11.28%. The business had revenue of $15.83 billion during the quarter, compared to the consensus estimate of $15.76 billion. During the same quarter last year, the firm earned $5.48 earnings per share. The business's revenue for the quarter was up 26.9% on a year-over-year basis. As a group, sell-side analysts expect that Capital One Financial will post 20.3 EPS for the current fiscal year.

Insider Activity

In other Capital One Financial news, insider Ravi Raghu sold 9,726 shares of the business's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $209.78, for a total transaction of $2,040,320.28. Following the completion of the sale, the insider directly owned 26,328 shares in the company, valued at approximately $5,523,087.84. The trade was a 26.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael Zamsky sold 5,473 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $218.02, for a total value of $1,193,223.46. Following the completion of the transaction, the insider directly owned 27,992 shares in the company, valued at approximately $6,102,815.84. This represents a 16.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 33,850 shares of company stock worth $7,208,382. 0.78% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in COF. QRG Capital Management Inc. lifted its holdings in Capital One Financial by 32.3% during the second quarter. QRG Capital Management Inc. now owns 118,061 shares of the financial services provider's stock valued at $23,685,000 after purchasing an additional 28,855 shares in the last quarter. Envestnet Portfolio Solutions Inc. raised its position in shares of Capital One Financial by 37.3% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 27,625 shares of the financial services provider's stock valued at $5,542,000 after purchasing an additional 7,503 shares during the period. Envestnet Asset Management Inc. lifted its stake in shares of Capital One Financial by 43.8% during the 2nd quarter. Envestnet Asset Management Inc. now owns 2,274,188 shares of the financial services provider's stock valued at $456,248,000 after buying an additional 692,425 shares in the last quarter. State Street Corp boosted its holdings in Capital One Financial by 107.9% in the 2nd quarter. State Street Corp now owns 57,278,732 shares of the financial services provider's stock worth $11,491,259,000 after buying an additional 29,724,829 shares during the period. Finally, Security National Bank of SO Dak purchased a new stake in Capital One Financial in the 2nd quarter worth $118,000. 89.84% of the stock is owned by hedge funds and other institutional investors.

Capital One Financial Company Profile

Capital One Financial Corp. is a diversified financial services company headquartered in McLean, Virginia. Founded in 1994, the company provides credit cards, consumer banking products, auto financing and commercial banking services through its Capital One brand.

Capital One offers credit cards for consumers and businesses, checking and savings accounts, certificates of deposit, personal loans and auto loans. Its commercial banking operations serve businesses, institutions and commercial real estate clients with lending, deposit, treasury management and other financial services.

Capital One primarily serves customers in the United States, with additional operations in Canada and the United Kingdom.

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