Davis Selected Advisers Sells 249,592 Shares of Capital One Financial Corporation (NYSE:COF)

Key Points

• Davis Selected Advisers has reduced its holdings in Capital One Financial Corporation by 2.7%, holding approximately 9 million shares, which represents its largest position in the portfolio.
• Capital One recently reported a significant earnings beat, with $5.48 earnings per share for the quarter, significantly exceeding the analysts' expectation of $1.93.
• The company has declared a quarterly dividend of $0.60 per share, with a dividend yield of 1.2%, although its dividend payout ratio stands at 123.08%.

Davis Selected Advisers reduced its stake in Capital One Financial Corporation (NYSE:COF - Free Report) by 2.7% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,999,453 shares of the financial services provider's stock after selling 249,592 shares during the period. Capital One Financial accounts for 9.3% of Davis Selected Advisers' holdings, making the stock its biggest holding. Davis Selected Advisers owned about 2.36% of Capital One Financial worth $1,613,602,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also added to or reduced their stakes in the company. Lone Pine Capital LLC bought a new position in shares of Capital One Financial during the fourth quarter valued at approximately $577,012,000. Diamond Hill Capital Management Inc. bought a new position in shares of Capital One Financial during the first quarter valued at approximately $381,848,000. Meritage Group LP purchased a new stake in shares of Capital One Financial during the 4th quarter worth $227,662,000. Marshall Wace LLP lifted its stake in shares of Capital One Financial by 376.1% during the 4th quarter. Marshall Wace LLP now owns 1,238,883 shares of the financial services provider's stock worth $220,918,000 after purchasing an additional 978,670 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in shares of Capital One Financial by 23.7% during the 1st 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 purchasing an additional 950,415 shares during the last quarter. 89.84% of the stock is currently owned by institutional investors.

Capital One Financial Stock Performance

Shares of NYSE COF traded up $1.03 during midday trading on Friday, reaching $208.32. The company had a trading volume of 3,108,026 shares, compared to its average volume of 4,080,770. The business's 50-day simple moving average is $208.99 and its 200 day simple moving average is $193.22. The stock has a market cap of $133.22 billion, a P/E ratio of 106.83, a P/E/G ratio of 0.82 and a beta of 1.16. Capital One Financial Corporation has a 1 year low of $131.55 and a 1 year high of $232.45. 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 (NYSE:COF - Get Free Report) last posted its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $5.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.93 by $3.55. The company had revenue of $12.49 billion during the quarter, compared to analysts' expectations of $12.72 billion. The company's quarterly revenue was up 31.4% on a year-over-year basis. During the same period in the prior year, the business posted $3.14 EPS. On average, analysts forecast that Capital One Financial Corporation will post 15.65 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 2nd. Investors of record on Friday, August 15th will be issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, August 15th. Capital One Financial's dividend payout ratio (DPR) is 123.08%.

Insider Buying and Selling

In related news, Director Ann F. Hackett sold 1,658 shares of the firm's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $198.70, for a total transaction of $329,444.60. Following the completion of the transaction, the director owned 56,244 shares of the company's stock, valued at $11,175,682.80. This trade represents a 2.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Michael Zamsky sold 9,560 shares of the firm's stock in a transaction on Monday, May 12th. The stock was sold at an average price of $199.40, for a total transaction of $1,906,264.00. Following the transaction, the insider directly owned 20,089 shares of the company's stock, valued at approximately $4,005,746.60. This trade represents a 32.24% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 26,847 shares of company stock valued at $5,696,173 over the last 90 days. Insiders own 1.26% of the company's stock.

Wall Street Analyst Weigh In

COF has been the subject of a number of analyst reports. Redburn Atlantic upgraded Capital One Financial to a "strong-buy" rating in a research note on Friday, August 1st. Wells Fargo & Company upped their price objective on Capital One Financial from $225.00 to $265.00 and gave the stock an "overweight" rating in a research note on Friday, July 25th. Bank of America increased their target price on shares of Capital One Financial from $223.00 to $233.00 and gave the company a "buy" rating in a research report on Wednesday, May 21st. Royal Bank Of Canada increased their target price on shares of Capital One Financial from $240.00 to $255.00 and gave the company a "sector perform" rating in a research report on Wednesday, July 23rd. Finally, Keefe, Bruyette & Woods increased their target price on shares of Capital One Financial from $248.00 to $260.00 and gave the company an "outperform" rating in a research report on Wednesday, July 23rd. Five investment analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and three have given a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $238.81.

Capital One Financial Company 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.