Delta Global Management LP Increases Stock Position in Capital One Financial Corporation $COF

Key Points

• Delta Global Management LP increased its stake in Capital One Financial by 18.8% in the first quarter, adding 42,378 shares and bringing its total holding to 267,837 shares worth about $48.9 million.
• Capital One reported strong second-quarter results, with EPS of $5.81 beating estimates and revenue rising 26.9% year over year, signaling solid momentum in its core business.
• Analysts remain mostly bullish, with multiple firms maintaining buy ratings and the consensus price target around $259.82, though the stock also faces legal and regulatory overhangs tied to fraud and data-breach issues.

Delta Global Management LP lifted its position in shares of Capital One Financial Corporation (NYSE:COF) by 18.8% during the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 267,837 shares of the financial services provider's stock after buying an additional 42,378 shares during the quarter. Capital One Financial makes up 4.0% of Delta Global Management LP's holdings, making the stock its 5th largest holding. Delta Global Management LP's holdings in Capital One Financial were worth $48,862,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Brighton Jones LLC increased its stake in Capital One Financial by 330.1% in the 4th quarter. Brighton Jones LLC now owns 13,587 shares of the financial services provider's stock worth $2,423,000 after buying an additional 10,428 shares in the last quarter. Intech Investment Management LLC boosted its stake in shares of Capital One Financial by 44.3% in the first quarter. Intech Investment Management LLC now owns 8,968 shares of the financial services provider's stock worth $1,608,000 after acquiring an additional 2,753 shares during the period. Sivia Capital Partners LLC boosted its stake in shares of Capital One Financial by 118.3% in the second quarter. Sivia Capital Partners LLC now owns 3,300 shares of the financial services provider's stock worth $702,000 after acquiring an additional 1,788 shares during the period. Flow Traders U.S. LLC purchased a new stake in shares of Capital One Financial during the second quarter worth about $218,000. Finally, Jump Financial LLC purchased a new stake in shares of Capital One Financial during the second quarter worth about $1,086,000. Institutional investors own 89.84% of the company's stock.

Capital One Financial News Roundup

Here are the key news stories impacting Capital One Financial this week:

• Positive Sentiment: Capital One’s Q2 results showed improved profitability, with the company swinging back to net income and posting higher net interest income, reinforcing the view that its core business momentum remains solid.
• Positive Sentiment: Multiple reports highlighted bullish analyst sentiment, including Piper Sandler and Morgan Stanley maintaining buy ratings, while one note set a $260 price target, suggesting meaningful upside from current levels.
• Positive Sentiment: Several articles pointed to Capital One’s technology and AI advantages, including its cloud-native infrastructure and open-source security tool VulnHunter, which support the company’s long-term competitive positioning.
• Neutral Sentiment: Capital One is also being viewed as a value stock after earnings, with coverage noting that the shares trade at a discount to peers on forward earnings and tangible book value.
• Negative Sentiment: The stock is facing overhang from legal and regulatory headlines, including a Zelle fraud lawsuit, a Canada data-breach settlement, and reports that customer payouts from a separate $425 million settlement may be delayed after an appeal.

Insider Buying and Selling

In related news, General Counsel Matthew W. Cooper sold 3,500 shares of the business's stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $208.00, for a total value of $728,000.00. Following the sale, the general counsel owned 90,194 shares in the company, valued at approximately $18,760,352. The trade was a 3.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Celia Karam sold 1,749 shares of the company's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $192.58, for a total transaction of $336,822.42. Following the sale, the insider directly owned 61,579 shares in the company, valued at approximately $11,858,883.82. The trade was a 2.76% 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 a total of 8,749 shares of company stock valued at $1,708,577 over the last quarter. Corporate insiders own 0.78% of the company's stock.

Capital One Financial Price Performance

NYSE:COF opened at $202.53 on Friday. The company has a current ratio of 1.02, a quick ratio of 1.03 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $126.03 billion, a P/E ratio of 12.53, a P/E/G ratio of 0.76 and a beta of 1.02. Capital One Financial Corporation has a 12 month low of $174.24 and a 12 month high of $259.64. The business's 50-day moving average is $195.38 and its 200 day moving average is $200.56.

Capital One Financial (NYSE:COF - Get Free Report) last announced 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 during the quarter, compared to analyst estimates of $15.76 billion. Capital One Financial had a return on equity of 11.28% and a net margin of 13.37%.The firm's revenue was up 26.9% on a year-over-year basis. During the same period in the prior year, the company earned $5.48 earnings per share. On average, equities research analysts forecast that Capital One Financial Corporation will post 20.13 earnings per share for the current fiscal year.

Capital One Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Tuesday, May 19th were issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Tuesday, May 19th. Capital One Financial's dividend payout ratio is 19.80%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Truist Financial lowered their price target on Capital One Financial from $275.00 to $255.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. TD Cowen cut their price objective on shares of Capital One Financial from $260.00 to $253.00 and set a "buy" rating for the company in a report on Tuesday, July 7th. The Goldman Sachs Group reduced their price objective on shares of Capital One Financial from $300.00 to $260.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. UBS Group boosted their target price on shares of Capital One Financial from $270.00 to $275.00 and gave the stock a "buy" rating in a report on Tuesday, July 7th. Finally, Argus dropped their target price on shares of Capital One Financial from $260.00 to $250.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Twenty research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $259.82.

Capital One Financial Company 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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