Capital One Financial Corporation (NYSE:COF) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is positive: Twenty-one of 24 analysts rate Capital One Financial a “buy,” while three recommend holding the stock. The average 12-month price target is $258.91, above its reported opening price of $215.81.
• Quarterly results exceeded expectations: Capital One reported EPS of $5.81, beating the $4.79 consensus estimate, while revenue rose 26.9% year over year to $15.83 billion.
• Shareholders received a quarterly dividend: The company declared a dividend of $0.80 per share, equivalent to $3.20 annually and a 1.5% yield, with a payout ratio of 19.8%.

Capital One Financial Corporation (NYSE:COF) has been assigned an average rating of "Moderate Buy" from the twenty-four analysts that are covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a hold rating and twenty-one have given a buy rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $258.9091.

Several analysts have issued reports on the company. HSBC upgraded Capital One Financial from a "hold" rating to a "buy" rating and upped their price objective for the company from $226.00 to $229.00 in a research note on Sunday, July 12th. Piper Sandler assumed coverage on Capital One Financial in a research report on Monday, June 29th. They issued an "overweight" rating and a $254.00 target price for the company. Weiss Ratings upgraded Capital One Financial from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, August 13th. BTIG Research boosted their price target on Capital One Financial from $224.00 to $259.00 and gave the company a "buy" rating in a report on Tuesday, June 30th. Finally, Wolfe Research upped their price target on Capital One Financial from $255.00 to $275.00 and gave the company an "outperform" rating in a research report on Tuesday, August 25th.

Capital One Financial Price Performance

Shares of COF stock opened at $215.81 on Monday. The firm has a fifty day moving average of $210.32 and a two-hundred day moving average of $197.82. The firm has a market cap of $132.40 billion, a P/E ratio of 13.35, a P/E/G ratio of 0.79 and a beta of 1.02. 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.

Capital One Financial (NYSE:COF - Get Free Report) last issued its earnings results on Tuesday, July 21st. The financial services provider reported $5.81 earnings per share (EPS) 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 for the quarter, compared to analyst estimates of $15.76 billion. During the same quarter in the prior year, the business posted $5.48 EPS. The company's revenue for the quarter was up 26.9% on a year-over-year basis. As a group, research analysts anticipate that Capital One Financial will post 20.29 earnings per share for the current fiscal year.

Capital One Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th will be paid a dividend of $0.80 per share. The ex-dividend date is Monday, August 17th. This represents a $3.20 annualized dividend and a yield of 1.5%. Capital One Financial's payout ratio is presently 19.80%.

Insider Activity at Capital One Financial

In other news, CAO Timothy P. Golden sold 3,487 shares of Capital One Financial stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $211.00, for a total value of $735,757.00. Following the completion of the transaction, the chief accounting officer directly owned 7,429 shares of the company's stock, valued at approximately $1,567,519. The trade was a 31.94% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Celia Karam sold 1,888 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $225.52, for a total transaction of $425,781.76. Following the sale, the insider directly owned 59,708 shares of the company's stock, valued at approximately $13,465,348.16. This represents a 3.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 26,267 shares of company stock valued at $5,617,648 in the last ninety days. 0.78% of the stock is owned by insiders.

Hedge Funds Weigh In On Capital One Financial

A number of large investors have recently bought and sold shares of the business. California State Teachers Retirement System grew its holdings in shares of Capital One Financial by 18,518.3% during the second quarter. California State Teachers Retirement System now owns 172,667,214 shares of the financial services provider's stock valued at $34,640,496,000 after purchasing an additional 171,739,810 shares during the last quarter. Norges Bank bought a new stake in Capital One Financial in the fourth quarter valued at $2,089,803,000. Bank of America Corp DE bought a new stake in Capital One Financial in the second quarter valued at $1,435,311,000. Legal & General Group Plc bought a new stake in Capital One Financial in the second quarter valued at $680,983,000. Finally, Berkshire Hathaway Inc acquired a new position in shares of Capital One Financial during the second quarter valued at $601,860,000. Institutional investors own 89.84% of the company's stock.

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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