Bank of America Corp DE Takes $1.44 Billion Position in Capital One Financial Corporation $COF

Key Points

• Bank of America acquired a $1.44 billion stake in Capital One Financial during the second quarter, purchasing 7.15 million shares and becoming the owner of approximately 1.17% of the company.
• Institutional ownership remains high at 89.84%, with Norges Bank, Legal & General, Berkshire Hathaway and other major investors also building positions in Capital One.
• Capital One reported quarterly EPS of $5.81, beating estimates by $1.02, while revenue rose 26.9% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $258.91.

Bank of America Corp DE purchased a new stake in shares of Capital One Financial Corporation (NYSE:COF - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 7,154,376 shares of the financial services provider's stock, valued at approximately $1,435,311,000. Bank of America Corp DE owned 1.17% of Capital One Financial at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of COF. Norges Bank acquired a new position in Capital One Financial in the 4th quarter valued at approximately $2,089,803,000. Legal & General Group Plc acquired a new stake in shares of Capital One Financial during the 2nd quarter valued at $680,983,000. Berkshire Hathaway Inc acquired a new stake in shares of Capital One Financial during the 2nd quarter valued at $601,860,000. Canada Pension Plan Investment Board purchased a new position in shares of Capital One Financial during the 2nd quarter valued at $482,718,000. Finally, Jupiter Topco LLC purchased a new position in shares of Capital One Financial during the 2nd quarter valued at $464,338,000. 89.84% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Piper Sandler assumed coverage on Capital One Financial in a report on Monday, June 29th. They set an "overweight" rating and a $254.00 price objective for the company. HSBC upgraded Capital One Financial from a "hold" rating to a "buy" rating and boosted their target price for the company from $226.00 to $229.00 in a research note on Sunday, July 12th. Citigroup dropped their target price on Capital One Financial from $310.00 to $295.00 and set a "buy" rating on the stock in a research report on Tuesday, July 28th. UBS Group lifted their price target on Capital One Financial from $275.00 to $280.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Finally, TD Cowen lowered their price target on Capital One Financial from $260.00 to $253.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Twenty-one equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Capital One Financial presently has a consensus rating of "Moderate Buy" and a consensus target price of $258.91.

Capital One Financial Stock Performance

COF opened at $206.83 on Tuesday. The company has a market cap of $126.88 billion, a PE ratio of 12.80, a price-to-earnings-growth ratio of 0.77 and a beta of 1.02. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.02 and a current ratio of 1.02. The stock has a 50-day moving average of $212.67 and a 200-day moving average of $198.35. Capital One Financial Corporation has a 52-week low of $174.24 and a 52-week high of $259.64.

Capital One Financial (NYSE:COF - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $5.81 EPS for the quarter, beating analysts' consensus estimates of $4.79 by $1.02. The company had revenue of $15.83 billion for the quarter, compared to analyst estimates of $15.76 billion. Capital One Financial had a net margin of 13.37% and a return on equity of 11.28%. The company's quarterly revenue was up 26.9% compared to the same quarter last year. During the same quarter last year, the firm posted $5.48 earnings per share. As a group, equities research analysts forecast that Capital One Financial Corporation will post 20.29 earnings per share for the current fiscal year.

Capital One Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th were given a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Monday, August 17th. Capital One Financial's dividend payout ratio is 19.80%.

Insider Buying and Selling

In related news, insider Michael Zamsky sold 5,473 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $218.02, for a total transaction of $1,193,223.46. Following the sale, the insider directly owned 27,992 shares in the company, valued at $6,102,815.84. This represents a 16.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Matthew W. Cooper sold 3,500 shares of Capital One Financial stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $214.10, for a total value of $749,350.00. Following the completion of the transaction, the general counsel owned 83,194 shares of the company's stock, valued at approximately $17,811,835.40. The trade was a 4.04% 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 have sold 29,767 shares of company stock worth $6,366,998 in the last three months. Company insiders own 0.78% of the company's stock.

Capital One Financial Company Profile

Capital One Financial Corporation NYSE: COF is a diversified financial services company headquartered in McLean, Virginia. Founded in 1994, the company initially built its business as a credit card issuer and has since expanded into consumer banking, commercial banking and payments.

Capital One offers a range of credit card products for consumers and businesses, along with deposit accounts, savings products, auto loans and other consumer lending services. Through its commercial banking operations, the company provides financing, treasury management and related services to commercial real estate clients, middle-market companies and other businesses.

Capital One primarily serves customers in the United States, with additional operations and financial services activities in Canada and the United Kingdom.

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