Canoe Financial LP Makes New $128.98 Million Investment in Capital One Financial Corporation $COF

Key Points

• Canoe Financial LP acquired 606,238 shares of Capital One Financial Corporation during Q2, valued at approximately $128.98 million, making it the firm's 19th largest position.
• Several institutional investors, including Vanguard Group and UBS, have increased their stakes in Capital One, reflecting strong interest among major funds.
• Capital One's recent earnings surpassed analysts' expectations, reporting $5.48 per share compared to a forecast of $1.93, alongside a dividend of $0.60 per share with a payout ratio of 123.08%.

Canoe Financial LP purchased a new stake in Capital One Financial Corporation (NYSE:COF - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 606,238 shares of the financial services provider's stock, valued at approximately $128,983,000. Capital One Financial accounts for 1.8% of Canoe Financial LP's investment portfolio, making the stock its 19th largest position. Canoe Financial LP owned 0.16% of Capital One Financial at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of COF. Diamond Hill Capital Management Inc. purchased a new stake in Capital One Financial during the first quarter worth $381,848,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Capital One Financial by 45.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,677,128 shares of the financial services provider's stock worth $838,609,000 after buying an additional 1,454,595 shares during the period. Bank of New York Mellon Corp lifted its holdings in Capital One Financial by 23.7% during the first quarter. Bank of New York Mellon Corp now owns 4,961,063 shares of the financial services provider's stock worth $889,519,000 after buying an additional 950,415 shares during the period. Nuveen LLC purchased a new stake in Capital One Financial during the first quarter worth $141,599,000. Finally, Goldman Sachs Group Inc. lifted its holdings in Capital One Financial by 18.2% during the first quarter. Goldman Sachs Group Inc. now owns 4,766,573 shares of the financial services provider's stock worth $854,647,000 after buying an additional 734,939 shares during the period. Hedge funds and other institutional investors own 89.84% of the company's stock.

Capital One Financial Stock Performance

COF traded down $2.84 during midday trading on Monday, hitting $225.48. 2,554,253 shares of the company were exchanged, compared to its average volume of 4,258,186. The company's 50 day simple moving average is $218.68 and its 200 day simple moving average is $197.82. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.47. Capital One Financial Corporation has a 1-year low of $143.22 and a 1-year high of $232.45. The firm has a market capitalization of $144.20 billion, a price-to-earnings ratio of 115.63, a price-to-earnings-growth ratio of 0.88 and a beta of 1.17.

Capital One Financial (NYSE:COF - Get Free Report) last posted its earnings results on Tuesday, July 22nd. The financial services provider reported $5.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.93 by $3.55. The firm had revenue of $12.49 billion for the quarter, compared to analysts' expectations of $12.72 billion. During the same period in the previous year, the company earned $3.14 earnings per share. The company's revenue was up 31.4% compared to the same quarter last year. As a group, sell-side analysts predict 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 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. This represents a $2.40 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, August 15th. Capital One Financial's dividend payout ratio is presently 123.08%.

Insider Activity

In other news, insider Michael Zamsky sold 5,515 shares of the stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $209.59, for a total transaction of $1,155,888.85. Following the sale, the insider directly owned 27,364 shares of the company's stock, valued at $5,735,220.76. This represents a 16.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Robert M. Alexander sold 10,114 shares of the stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $227.86, for a total transaction of $2,304,576.04. Following the sale, the insider directly owned 68,707 shares in the company, valued at approximately $15,655,577.02. The trade was a 12.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 21,298 shares of company stock valued at $4,679,844. Insiders own 1.26% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently commented on COF shares. Redburn Atlantic upgraded Capital One Financial to a "strong-buy" rating in a report on Friday, August 1st. Barclays reiterated an "overweight" rating and set a $253.00 price objective (up previously from $212.00) on shares of Capital One Financial in a report on Monday, June 23rd. Wells Fargo & Company increased their price objective on Capital One Financial from $225.00 to $265.00 and gave the company an "overweight" rating in a report on Friday, July 25th. Wall Street Zen downgraded Capital One Financial from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, TD Cowen raised Capital One Financial from a "hold" rating to a "buy" rating and upped their target price for the company from $184.00 to $258.00 in a research report on Tuesday, July 8th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Capital One Financial currently has an average rating of "Moderate Buy" and a consensus target price of $239.44.

Capital One Financial 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.