Blue Whale Capital LLP Makes New Investment in Capital One Financial Corporation $COF

Key Points

• Blue Whale Capital bought a new stake of 139,943 Capital One shares (~$29.75 million) in Q3, representing about 1.6% of its portfolio and making COF its 20th largest holding.
• Wall Street has a consensus rating of Moderate Buy with an average target of $274.70, and several firms (e.g., Morgan Stanley, Citigroup) recently raised targets into the $300s while the stock trades near $185.
• Capital One missed Q4 EPS ($3.86 vs. $4.14) despite revenue rising 53.3% YoY; it pays a $0.80 quarterly dividend (1.7% yield) but has a high payout ratio (108%) and insiders have been net sellers recently.

Blue Whale Capital LLP purchased a new stake in Capital One Financial Corporation (NYSE:COF) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 139,943 shares of the financial services provider's stock, valued at approximately $29,749,000. Capital One Financial comprises approximately 1.6% of Blue Whale Capital LLP's investment portfolio, making the stock its 20th largest holding.

Other institutional investors also recently modified their holdings of the company. Mather Group LLC. lifted its position in shares of Capital One Financial by 1.0% during the 3rd quarter. Mather Group LLC. now owns 4,540 shares of the financial services provider's stock worth $965,000 after buying an additional 47 shares during the last quarter. Optas LLC grew its position in Capital One Financial by 1.4% in the third quarter. Optas LLC now owns 3,484 shares of the financial services provider's stock valued at $741,000 after acquiring an additional 49 shares during the last quarter. Nations Financial Group Inc. IA ADV grew its position in Capital One Financial by 1.1% in the third quarter. Nations Financial Group Inc. IA ADV now owns 4,450 shares of the financial services provider's stock valued at $946,000 after acquiring an additional 49 shares during the last quarter. Bridges Investment Management Inc. raised its stake in Capital One Financial by 0.4% during the third quarter. Bridges Investment Management Inc. now owns 11,251 shares of the financial services provider's stock worth $2,392,000 after acquiring an additional 49 shares in the last quarter. Finally, Culbertson A N & Co. Inc. lifted its holdings in shares of Capital One Financial by 0.4% in the second quarter. Culbertson A N & Co. Inc. now owns 11,365 shares of the financial services provider's stock worth $2,418,000 after acquiring an additional 50 shares during the last quarter. Institutional investors and hedge funds own 89.84% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on COF shares. Morgan Stanley lifted their price target on shares of Capital One Financial from $280.00 to $300.00 and gave the company an "overweight" rating in a report on Tuesday, January 20th. Wall Street Zen lowered shares of Capital One Financial from a "buy" rating to a "hold" rating in a research report on Saturday, January 10th. Citigroup boosted their target price on shares of Capital One Financial from $290.00 to $310.00 and gave the stock a "buy" rating in a research note on Wednesday, December 31st. Truist Financial dropped their price target on Capital One Financial from $290.00 to $275.00 and set a "buy" rating for the company in a research note on Monday, January 26th. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $275.00 price objective on shares of Capital One Financial in a report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $274.70.

Capital One Financial Trading Down 0.4%

Shares of COF stock opened at $184.93 on Wednesday. The stock has a market cap of $115.01 billion, a price-to-earnings ratio of 62.47, a PEG ratio of 0.56 and a beta of 1.14. The stock has a 50-day moving average of $219.49 and a 200-day moving average of $221.76. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.44. Capital One Financial Corporation has a 1-year low of $143.22 and a 1-year high of $259.64.

Capital One Financial (NYSE:COF - Get Free Report) last posted its quarterly earnings data on Thursday, January 22nd. The financial services provider reported $3.86 EPS for the quarter, missing analysts' consensus estimates of $4.14 by ($0.28). Capital One Financial had a return on equity of 10.68% and a net margin of 3.54%.During the same period last year, the business earned $2.67 earnings per share. The firm's revenue was up 53.3% compared to the same quarter last year. On average, equities research analysts forecast that Capital One Financial Corporation will post 15.65 earnings per share for the current year.

Capital One Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Thursday, February 19th were given a $0.80 dividend. The ex-dividend date was Thursday, February 19th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.7%. Capital One Financial's payout ratio is 108.11%.

Insider Buying and Selling

In related news, insider Celia Karam sold 2,108 shares of the business's stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $218.25, for a total value of $460,071.00. Following the transaction, the insider owned 59,269 shares in the company, valued at $12,935,459.25. The trade was a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Lia Dean sold 3,284 shares of the company's stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $223.68, for a total transaction of $734,565.12. Following the sale, the insider directly owned 70,162 shares in the company, valued at $15,693,836.16. This trade represents a 4.47% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 67,933 shares of company stock worth $14,363,897. Corporate insiders own 1.26% of the company's stock.

Capital One Financial 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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