Capital One Financial (NYSE:COF) Price Target Lowered to $250.00 at Argus

Key Points

• Argus cut its price target on Capital One to $250 (from $260) while keeping a "buy" rating, a level that implies roughly a 25% upside from the current share price; the analyst consensus target is about $258.86 and the stock carries a "Moderate Buy" average rating.
• Q1 results missed expectations as EPS came in at $4.42 vs. $5.08 consensus and revenue also fell short, while provisions and operating expenses rose materially, driving near-term negative sentiment.
• Near-term pressure is reinforced by a recently approved $425M customer settlement and notable insider selling (about 50,047 shares worth ~$9.7M over three months), which along with some analyst target cuts has weighed on the shares.

Capital One Financial (NYSE:COF) had its price target lowered by Argus from $260.00 to $250.00 in a note issued to investors on Thursday,MarketScreener reports. The firm presently has a "buy" rating on the financial services provider's stock. Argus' price objective indicates a potential upside of 25.42% from the company's current price.

COF has been the topic of a number of other research reports. Evercore cut their price objective on Capital One Financial from $265.00 to $222.00 and set an "outperform" rating on the stock in a research report on Monday, April 6th. Deutsche Bank Aktiengesellschaft cut their price target on Capital One Financial from $256.00 to $250.00 and set a "hold" rating on the stock in a report on Wednesday. Barclays boosted their price objective on Capital One Financial from $226.00 to $250.00 and gave the stock an "overweight" rating in a research report on Wednesday. TD Cowen lowered their price target on shares of Capital One Financial from $290.00 to $260.00 and set a "buy" rating for the company in a report on Tuesday, March 31st. Finally, Wall Street Zen lowered Capital One Financial from a "buy" rating to a "hold" rating in a report on Saturday, January 10th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $258.86.

Capital One Financial Stock Down 1.6%

Shares of COF opened at $199.33 on Thursday. The company's 50-day simple moving average is $192.19 and its 200-day simple moving average is $214.16. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.04 and a current ratio of 1.04. Capital One Financial has a 1 year low of $174.72 and a 1 year high of $259.64. The stock has a market capitalization of $123.97 billion, a PE ratio of 69.94, a P/E/G ratio of 0.64 and a beta of 1.14.

Capital One Financial (NYSE:COF - Get Free Report) last announced its quarterly earnings data on Tuesday, April 21st. The financial services provider reported $4.42 earnings per share for the quarter, missing analysts' consensus estimates of $5.08 by ($0.66). Capital One Financial had a net margin of 4.29% and a return on equity of 10.57%. The business had revenue of $15.23 billion during the quarter, compared to analyst estimates of $15.68 billion. During the same quarter last year, the firm posted $4.06 EPS. The company's revenue for the quarter was up 52.3% on a year-over-year basis. Analysts forecast that Capital One Financial will post 19.48 earnings per share for the current fiscal year.

Insider Activity at Capital One Financial

In related news, insider Neal Blinde sold 38,135 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $190.51, for a total transaction of $7,265,098.85. Following the transaction, the insider owned 33,551 shares in the company, valued at $6,391,801.01. This trade represents a 53.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Jason P. Hanson sold 3,729 shares of Capital One Financial stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $205.00, for a total value of $764,445.00. Following the transaction, the insider directly owned 40,230 shares in the company, valued at approximately $8,247,150. This trade represents a 8.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 50,047 shares of company stock worth $9,742,217. Insiders own 0.78% of the company's stock.

Hedge Funds Weigh In On Capital One Financial

A number of hedge funds have recently modified their holdings of the business. Evolution Wealth Management Inc. boosted its stake in Capital One Financial by 529.4% during the 4th quarter. Evolution Wealth Management Inc. now owns 107 shares of the financial services provider's stock worth $26,000 after purchasing an additional 90 shares during the period. VSM Wealth Advisory LLC purchased a new stake in shares of Capital One Financial in the fourth quarter valued at about $27,000. Cherry Tree Wealth Management LLC raised its holdings in shares of Capital One Financial by 1,312.5% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 113 shares of the financial services provider's stock valued at $27,000 after buying an additional 105 shares during the last quarter. Osterweis Capital Management Inc. acquired a new stake in shares of Capital One Financial during the fourth quarter worth about $29,000. Finally, CrossGen Wealth LLC acquired a new position in Capital One Financial in the 4th quarter valued at about $30,000. 89.84% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Capital One Financial

Here are the key news stories impacting Capital One Financial this week:

• Positive Sentiment: Capital One finalized the Brex acquisition and a related share resale, a strategic move that expands its commercial payments platform and supports future revenue diversification. Capital One Finalizes Brex Acquisition and Share Resale
• Positive Sentiment: Several firms reaffirmed buy/overweight ratings or raised targets after the quarter (JPMorgan raised its PT modestly; Barclays and BTIG remain constructive), signaling continued analyst confidence in COF’s longer-term thesis despite the near-term miss. JPMorgan Lifts Capital One Price Target Barclays/BTIG Coverage
• Neutral Sentiment: Some income-focused investors may view Capital One’s Series N preferreds as attractive in the current rate environment; that’s more relevant for yield investors than the common share price. Seeking Alpha: Series N Preferreds
• Negative Sentiment: Q1 results missed on both EPS and revenue versus consensus, with adjusted EPS below estimates and revenue/NPIs that failed to satisfy investors — the primary catalyst for the share weakness. Reuters: Quarterly Profit Misses
• Negative Sentiment: Provisions for credit losses and operating expenses rose materially in the quarter (provisions jumped ~72% YoY in reporting), reviving investor concern about credit normalization in cards and consumer lending. Zacks: Provisions & Expenses Rise
• Negative Sentiment: A $425M settlement got final approval requiring payouts to millions of current/former customers — a near-term cash outflow and reputational item that likely weighs on sentiment. Investopedia: $425M Settlement Approved
• Negative Sentiment: Heavy insider selling and short-term investor rotation noted in some data services increased pressure after the earnings miss, reinforcing near-term downward momentum. QuiverQuant: Slide After Q1 Miss

About Capital One Financial

Capital One Financial Corporation NYSE: COF is a diversified bank holding company headquartered in McLean, Virginia. The company's core businesses include credit card lending, consumer and commercial banking, and auto finance. Capital One issues a wide range of credit card products for consumers and small businesses, and it operates deposit and digital banking services aimed at retail customers and small to midsize enterprises.

Products and services include credit and charge cards, checking and savings accounts (including the online-focused Capital One 360 platform), auto loans, and commercial lending solutions.

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