Capital One Financial (NYSE:COF) Shares Down 6.1% - Should You Sell?

Key Points

• Capital One Financial shares dropped 6.1% to last trade at $210.01, significantly down from a previous close of $223.60 with trading volume declining by 77%.
• Multiple brokerages have upgraded their ratings and target prices for Capital One, with Citigroup raising its target from $250.00 to $275.00 and TD Cowen increasing theirs from $184.00 to $258.00, reflecting bullish sentiment.
• The company reported earnings of $5.48 per share, beating estimates by $3.55, and had a revenue of $12.49 billion, indicating a 31.4% year-over-year growth.

Capital One Financial Corporation (NYSE:COF) shares fell 6.1% on Tuesday . The stock traded as low as $214.16 and last traded at $210.01. 973,845 shares traded hands during trading, a decline of 77% from the average session volume of 4,203,438 shares. The stock had previously closed at $223.60.

Analyst Ratings Changes

Several brokerages have weighed in on COF. Citigroup upped their target price on shares of Capital One Financial from $250.00 to $275.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. TD Cowen upgraded Capital One Financial from a "hold" rating to a "buy" rating and boosted their price target for the company from $184.00 to $258.00 in a report on Tuesday, July 8th. Royal Bank Of Canada lifted their price objective on Capital One Financial from $240.00 to $255.00 and gave the company a "sector perform" rating in a research report on Wednesday, July 23rd. Truist Financial raised their price target on Capital One Financial from $260.00 to $270.00 and gave the stock a "buy" rating in a research note on Friday, September 12th. Finally, Keefe, Bruyette & Woods raised their target price on shares of Capital One Financial from $248.00 to $260.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 23rd. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Capital One Financial has a consensus rating of "Moderate Buy" and a consensus price target of $244.29.

Capital One Financial Trading Down 5.8%

The stock has a market capitalization of $134.64 billion, a price-to-earnings ratio of 107.88, a P/E/G ratio of 0.86 and a beta of 1.17. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.02 and a current ratio of 1.02. The firm has a fifty day moving average of $219.43 and a 200-day moving average of $200.14.

Capital One Financial (NYSE:COF - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The financial services provider reported $5.48 earnings per share for the quarter, beating the consensus estimate of $1.93 by $3.55. The business had revenue of $12.49 billion for the quarter, compared to analyst estimates of $12.72 billion. The firm's revenue was up 31.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.14 earnings per share. As a group, equities analysts predict that Capital One Financial Corporation will post 15.65 earnings per share for the current fiscal year.

Capital One Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Stockholders of record on Friday, August 15th were paid a dividend of $0.60 per share. The ex-dividend date was Friday, August 15th. This represents a $2.40 annualized dividend and a dividend yield of 1.1%. Capital One Financial's dividend payout ratio (DPR) is currently 123.08%.

Insider Transactions at Capital One Financial

In related news, General Counsel Matthew W. Cooper sold 2,000 shares of Capital One Financial stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $223.40, for a total value of $446,800.00. Following the completion of the transaction, the general counsel directly owned 100,486 shares in the company, valued at approximately $22,448,572.40. This trade represents a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Robert M. Alexander sold 10,114 shares of Capital One Financial stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $227.86, for a total value of $2,304,576.04. Following the completion of the transaction, the insider owned 68,707 shares of the company's stock, valued at $15,655,577.02. This trade represents a 12.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 21,298 shares of company stock valued at $4,679,844 over the last ninety days. 1.26% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Capital One Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Kingstone Capital Partners Texas LLC raised its holdings in shares of Capital One Financial by 588,668.3% during the second quarter. Kingstone Capital Partners Texas LLC now owns 117,447,497 shares of the financial services provider's stock valued at $24,988,129,000 after buying an additional 117,427,549 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Capital One Financial by 74.8% during the second quarter. Vanguard Group Inc. now owns 56,380,913 shares of the financial services provider's stock valued at $11,995,603,000 after purchasing an additional 24,129,990 shares during the period. State Street Corp increased its holdings in shares of Capital One Financial by 63.4% during the second quarter. State Street Corp now owns 27,780,128 shares of the financial services provider's stock valued at $5,910,500,000 after purchasing an additional 10,776,843 shares during the period. Norges Bank bought a new stake in shares of Capital One Financial during the second quarter valued at about $1,701,511,000. Finally, Geode Capital Management LLC raised its stake in shares of Capital One Financial by 64.1% during the second quarter. Geode Capital Management LLC now owns 14,008,841 shares of the financial services provider's stock valued at $2,970,628,000 after purchasing an additional 5,474,328 shares in the last quarter. 89.84% of the stock is currently owned by institutional investors and hedge funds.

Capital One Financial Company Profile

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.