Capital One Financial (NYSE:COF) Releases Quarterly Earnings Results, Beats Expectations By $1.12 EPS

Key Points

• Capital One Financial beat quarterly earnings expectations, reporting EPS of $5.81 versus the $4.69 consensus estimate, a surprise of $1.12 per share. Revenue also came in slightly ahead of forecasts at $15.83 billion.
• The stock traded lower after the report, falling $0.44 to $206.33 on Tuesday amid volume below its average. The company still has a market cap of about $128.4 billion and a beta of 1.02.
• Capital One continues to return cash to shareholders with a quarterly dividend of $0.80 per share, or $3.20 annualized, for a 1.6% yield. However, the payout ratio is currently above 100%, at 112.28%.

Capital One Financial Corporation (NYSE:COF) posted its quarterly earnings data on Tuesday. The financial services provider reported $5.81 EPS for the quarter, beating analysts' consensus estimates of $4.69 by $1.12, FiscalAI reports. Capital One Financial had a return on equity of 10.59% and a net margin of 4.29%.The company had revenue of $15.83 billion during the quarter, compared to analysts' expectations of $15.77 billion.

Capital One Financial Stock Performance

NYSE COF traded down $0.44 on Tuesday, reaching $206.33. 3,755,458 shares of the stock were exchanged, compared to its average volume of 5,102,650. Capital One Financial Corporation has a one year low of $174.24 and a one year high of $259.64. The firm has a market capitalization of $128.40 billion, a PE ratio of 72.40, a PEG ratio of 0.75 and a beta of 1.02. The company's 50-day simple moving average is $193.93 and its two-hundred day simple moving average is $201.42. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.46.

Capital One Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Tuesday, May 19th were issued a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Tuesday, May 19th. Capital One Financial's dividend payout ratio is currently 112.28%.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Argus cut their price target on Capital One Financial from $260.00 to $250.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. TD Cowen lowered their price objective on shares of Capital One Financial from $260.00 to $253.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. Evercore dropped their price objective on shares of Capital One Financial from $265.00 to $222.00 and set an "outperform" rating on the stock in a report on Monday, April 6th. Morgan Stanley reduced their target price on shares of Capital One Financial from $300.00 to $273.00 and set an "overweight" rating for the company in a report on Thursday, April 16th. Finally, Bank of America decreased their price target on shares of Capital One Financial from $234.00 to $231.00 and set a "buy" rating on the stock in a research report on Thursday, July 9th. Twenty research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $259.91.

Insider Buying and Selling

In other Capital One Financial news, General Counsel Matthew W. Cooper sold 3,500 shares of the company's stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $208.00, for a total value of $728,000.00. Following the completion of the transaction, the general counsel directly owned 90,194 shares in the company, valued at $18,760,352. This represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Celia Karam sold 1,749 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $192.58, for a total transaction of $336,822.42. Following the completion of the sale, the insider directly owned 61,579 shares of the company's stock, valued at approximately $11,858,883.82. This trade represents a 2.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 8,749 shares of company stock valued at $1,708,577. Company insiders own 0.78% of the company's stock.

Institutional Investors Weigh In On Capital One Financial

Institutional investors have recently bought and sold shares of the business. Brighton Jones LLC grew its position in shares of Capital One Financial by 330.1% during the fourth quarter. Brighton Jones LLC now owns 13,587 shares of the financial services provider's stock worth $2,423,000 after purchasing an additional 10,428 shares in the last quarter. Intech Investment Management LLC boosted its stake in Capital One Financial by 44.3% in the 1st quarter. Intech Investment Management LLC now owns 8,968 shares of the financial services provider's stock worth $1,608,000 after purchasing an additional 2,753 shares during the period. Sivia Capital Partners LLC grew its holdings in Capital One Financial by 118.3% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,300 shares of the financial services provider's stock valued at $702,000 after buying an additional 1,788 shares in the last quarter. Flow Traders U.S. LLC purchased a new stake in Capital One Financial during the 2nd quarter valued at approximately $218,000. Finally, Jump Financial LLC bought a new stake in shares of Capital One Financial during the second quarter valued at approximately $1,086,000. Hedge funds and other institutional investors own 89.84% of the company's stock.

Capital One Financial Company Profile

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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