Capital One Financial (NYSE:COF) Shares Gap Up Following Strong Earnings

Key Points

• Capital One Financial shares experienced a significant jump, opening at $227.01 following a strong earnings report that included an EPS of $5.95, surpassing analysts' expectations of $4.25.
• The company declared a quarterly dividend of $0.60 per share, resulting in an annualized dividend of $2.40, which gives a yield of 1.1%, despite a high dividend payout ratio of 123.08%.
• Several analysts have updated their ratings, with targets for Capital One's stock now ranging from $264 to $271, showcasing strong confidence in the company's future performance.

Capital One Financial Corporation (NYSE:COF) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $217.05, but opened at $227.01. Capital One Financial shares last traded at $224.71, with a volume of 1,789,336 shares changing hands.

The financial services provider reported $5.95 EPS for the quarter, beating the consensus estimate of $4.25 by $1.70. The firm had revenue of $15.36 billion during the quarter, compared to analysts' expectations of $15.06 billion. The business's revenue for the quarter was up 53.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $4.51 EPS.

Capital One Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Investors of record on Friday, August 15th were given a dividend of $0.60 per share. The ex-dividend date was Friday, August 15th. This represents a $2.40 annualized dividend and a yield of 1.1%. Capital One Financial's dividend payout ratio is presently 123.08%.

Analyst Ratings Changes

COF has been the subject of several research reports. BTIG Research restated a "buy" rating and set a $264.00 price target on shares of Capital One Financial in a research report on Wednesday. Morgan Stanley increased their price target on shares of Capital One Financial from $261.00 to $267.00 and gave the company an "overweight" rating in a research report on Monday, September 29th. Robert W. Baird increased their price target on shares of Capital One Financial from $245.00 to $270.00 and gave the company an "outperform" rating in a research report on Wednesday. Barclays increased their price target on shares of Capital One Financial from $257.00 to $271.00 and gave the company an "overweight" rating in a research report on Wednesday. Finally, Truist Financial increased their price target on shares of Capital One Financial from $260.00 to $270.00 and gave the company a "buy" rating in a research report on Friday, September 12th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Capital One Financial currently has an average rating of "Moderate Buy" and an average target price of $258.79.

Insiders Place Their Bets

In other news, insider Michael Zamsky sold 5,515 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $209.59, for a total value of $1,155,888.85. Following the completion of the transaction, the insider directly owned 27,364 shares in the company, valued at approximately $5,735,220.76. This trade represents a 16.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Timothy P. Golden sold 3,462 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $210.28, for a total transaction of $727,989.36. Following the completion of the transaction, the chief accounting officer owned 8,987 shares of the company's stock, valued at $1,889,786.36. This trade represents a 27.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 13,184 shares of company stock worth $2,799,248 over the last quarter. 1.26% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Capital One Financial

A number of large investors have recently modified their holdings of the company. Kingstone Capital Partners Texas LLC boosted its position in shares of Capital One Financial by 588,668.3% in 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 acquiring an additional 117,427,549 shares during the period. Vanguard Group Inc. boosted its position in shares of Capital One Financial by 74.8% in 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 acquiring an additional 24,129,990 shares during the period. State Street Corp boosted its position in shares of Capital One Financial by 63.4% in 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 acquiring an additional 10,776,843 shares during the period. Geode Capital Management LLC boosted its position in shares of Capital One Financial by 64.1% in 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 acquiring an additional 5,474,328 shares during the period. Finally, Norges Bank bought a new position in shares of Capital One Financial in the second quarter valued at approximately $1,701,511,000. 89.84% of the stock is currently owned by institutional investors.

Capital One Financial Price Performance

The business's 50-day moving average price is $219.16 and its 200 day moving average price is $204.19. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $143.51 billion, a P/E ratio of 115.08, a price-to-earnings-growth ratio of 0.77 and a beta of 1.18.

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.

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