Capital One Financial Corporation $COF Shares Sold by Diamond Hill Capital Management Inc.

Key Points

• Diamond Hill Capital Management cut its stake in Capital One Financial by 11.8% in the fourth quarter, though the fund still held 2.49 million shares valued at about $603 million and made COF its fourth-largest position.
• Capital One recently reported Q1 earnings that missed expectations, posting $4.42 EPS versus the $5.08 estimate and revenue of $15.23 billion versus $15.68 billion expected, even though revenue rose 52.3% from a year ago.
• The company declared a quarterly dividend of $0.80 per share payable June 1, while analysts remain mostly positive with a consensus Moderate Buy rating and an average price target of $258.75.

Diamond Hill Capital Management Inc. decreased its stake in Capital One Financial Corporation (NYSE:COF) by 11.8% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,487,661 shares of the financial services provider's stock after selling 331,902 shares during the period. Capital One Financial makes up 3.1% of Diamond Hill Capital Management Inc.'s investment portfolio, making the stock its 4th largest holding. Diamond Hill Capital Management Inc. owned 0.39% of Capital One Financial worth $602,910,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Capital One Financial by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 56,897,238 shares of the financial services provider's stock valued at $13,789,615,000 after purchasing an additional 360,071 shares during the period. Franklin Resources Inc. raised its position in Capital One Financial by 12.8% during the third quarter. Franklin Resources Inc. now owns 11,838,304 shares of the financial services provider's stock worth $2,516,587,000 after acquiring an additional 1,339,215 shares during the last quarter. Davis Selected Advisers raised its position in Capital One Financial by 2.8% during the fourth quarter. Davis Selected Advisers now owns 8,614,766 shares of the financial services provider's stock worth $2,087,878,000 after acquiring an additional 234,649 shares during the last quarter. Capital Research Global Investors raised its position in Capital One Financial by 3.7% during the third quarter. Capital Research Global Investors now owns 8,426,060 shares of the financial services provider's stock worth $1,791,264,000 after acquiring an additional 302,733 shares during the last quarter. Finally, Viking Global Investors LP raised its position in Capital One Financial by 30.3% during the third quarter. Viking Global Investors LP now owns 7,388,506 shares of the financial services provider's stock worth $1,570,649,000 after acquiring an additional 1,717,148 shares during the last quarter. Institutional investors and hedge funds own 89.84% of the company's stock.

Capital One Financial Stock Performance

Shares of COF stock opened at $186.62 on Friday. Capital One Financial Corporation has a one year low of $174.98 and a one year high of $259.64. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.03 and a current ratio of 1.03. The company has a 50 day moving average price of $188.24 and a 200 day moving average price of $210.64. The firm has a market capitalization of $116.13 billion, a price-to-earnings ratio of 65.48, a price-to-earnings-growth ratio of 0.68 and a beta of 1.05.

Capital One Financial (NYSE:COF - Get Free Report) last issued its quarterly earnings results on Tuesday, April 21st. The financial services provider reported $4.42 EPS for the quarter, missing the consensus estimate of $5.08 by ($0.66). Capital One Financial had a return on equity of 10.59% and a net margin of 4.29%.The company had revenue of $15.23 billion for the quarter, compared to analyst estimates of $15.68 billion. During the same period last year, the company posted $4.06 EPS. The business's revenue for the quarter was up 52.3% on a year-over-year basis. Sell-side analysts anticipate that Capital One Financial Corporation will post 19.17 EPS for the current year.

Capital One Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Tuesday, May 19th will be given a dividend of $0.80 per share. The ex-dividend date of this dividend is Tuesday, May 19th. This represents a $3.20 annualized dividend and a yield of 1.7%. Capital One Financial's dividend payout ratio is 112.28%.

Insider Activity

In other Capital One Financial news, insider Lia Dean sold 1,692 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $185.61, for a total transaction of $314,052.12. Following the completion of the sale, the insider directly owned 65,454 shares in the company, valued at $12,148,916.94. The trade was a 2.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Neal Blinde sold 38,135 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $190.51, for a total transaction of $7,265,098.85. Following the sale, the insider owned 33,551 shares of the company's stock, valued at approximately $6,391,801.01. This represents a 53.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 49,904 shares of company stock valued at $9,528,159 in the last ninety days. 0.78% of the stock is owned by company insiders.

Analysts Set New Price Targets

COF has been the subject of a number of research reports. Barclays lifted their target price on shares of Capital One Financial from $226.00 to $250.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. BTIG Research restated a "buy" rating and set a $224.00 target price on shares of Capital One Financial in a research report on Wednesday, April 22nd. JPMorgan Chase & Co. lifted their target price on shares of Capital One Financial from $213.00 to $215.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. Truist Financial cut their target price on shares of Capital One Financial from $275.00 to $255.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Capital One Financial in a research report on Friday, March 27th. Seventeen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $258.75.

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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