Hosking Partners LLP Lowers Stake in Capital One Financial Corporation $COF

Key Points

• Hosking Partners LLP cut its Capital One stake by 9% in the fourth quarter, selling 23,861 shares and leaving it with 240,535 shares worth about $58.3 million.
• Capital One reported weaker-than-expected quarterly results, with EPS of $4.42 versus the $5.08 consensus and revenue of $15.23 billion versus expectations of $15.68 billion, even though revenue rose 52.3% year over year.
• The company still returned cash to shareholders by announcing a quarterly dividend of $0.80 per share, or $3.20 annualized, for a 1.7% yield, while analysts maintained a Moderate Buy consensus with an average target price of $257.52.

Hosking Partners LLP reduced its holdings in shares of Capital One Financial Corporation (NYSE:COF - Free Report) by 9.0% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 240,535 shares of the financial services provider's stock after selling 23,861 shares during the period. Capital One Financial accounts for about 2.0% of Hosking Partners LLP's investment portfolio, making the stock its 15th largest holding. Hosking Partners LLP's holdings in Capital One Financial were worth $58,296,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Strive Asset Management LLC purchased a new position in Capital One Financial during the 3rd quarter valued at about $28,000. Olistico Wealth LLC purchased a new position in Capital One Financial in the fourth quarter worth about $30,000. Rakuten Securities Inc. raised its holdings in Capital One Financial by 550.0% in the fourth quarter. Rakuten Securities Inc. now owns 130 shares of the financial services provider's stock worth $32,000 after buying an additional 110 shares during the last quarter. WFA of San Diego LLC purchased a new position in Capital One Financial in the second quarter worth about $32,000. Finally, Westfuller Advisors LLC raised its holdings in Capital One Financial by 661.1% in the fourth quarter. Westfuller Advisors LLC now owns 137 shares of the financial services provider's stock worth $33,000 after buying an additional 119 shares during the last quarter. 89.84% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Capital One Financial

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

• Positive Sentiment: Capital One announced a quarterly dividend of $0.80 per share, underscoring continued capital returns to shareholders and signaling confidence in the company’s financial position. Capital One Announces Quarterly Dividend
• Neutral Sentiment: A recent article highlighted that COF’s valuation looks stretched relative to its growth expectations, with the stock trading at a rich P/E multiple even after a recent pullback. A Look At Capital One (COF) Valuation As Growth Expectations Clash With Rich P/E Multiple
• Neutral Sentiment: Another commentary said Capital One’s acquisition of Discover Financial and related fintech ambitions could reshape the business, but investors are still waiting to see whether the strategy translates into stronger performance. Capital One Redefines Its Role In Payments And Fintech Transformation
• Negative Sentiment: Analyst notes and market commentary also point to rising credit-risk concerns and reduced price targets after the company’s latest quarterly results, which may be weighing on sentiment toward the shares. Deutsche Bank and BofA Lower Capital One (COF) Price Targets after Q1 Results

Analyst Upgrades and Downgrades

Several research analysts have issued reports on COF shares. 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 report on Wednesday, April 22nd. Wells Fargo & Company decreased their target price on shares of Capital One Financial from $280.00 to $260.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Truist Financial decreased 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 report on Thursday, April 23rd. BTIG Research reaffirmed a "buy" rating and issued a $224.00 target price on shares of Capital One Financial in a report on Wednesday, April 22nd. Finally, 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 report on Wednesday, April 22nd. Eighteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $257.52.

Capital One Financial Price Performance

COF stock opened at $189.34 on Monday. Capital One Financial Corporation has a 52 week low of $174.98 and a 52 week high of $259.64. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.46. The company has a fifty day simple moving average of $190.04 and a two-hundred day simple moving average of $213.06. The firm has a market capitalization of $117.82 billion, a P/E ratio of 66.43, a price-to-earnings-growth ratio of 0.69 and a beta of 1.05.

Capital One Financial (NYSE:COF - Get Free Report) last announced its earnings results on Tuesday, April 21st. The financial services provider reported $4.42 earnings per share for the quarter, missing the consensus estimate of $5.08 by ($0.66). Capital One Financial had a net margin of 4.29% and a return on equity of 10.59%. The firm had revenue of $15.23 billion during the quarter, compared to analysts' expectations of $15.68 billion. During the same period in the prior year, the company posted $4.06 EPS. The company's revenue was up 52.3% compared to the same quarter last year. Analysts anticipate that Capital One Financial Corporation will post 19.17 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 Monday, June 1st. Shareholders 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 dividend on an annualized basis and a yield of 1.7%. Capital One Financial's dividend payout ratio (DPR) is 112.28%.

Insider Buying and Selling at Capital One Financial

In other news, insider Lia Dean sold 1,692 shares of Capital One Financial stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $185.61, for a total value of $314,052.12. Following the transaction, the insider owned 65,454 shares of the company's stock, valued at $12,148,916.94. The trade was a 2.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jason P. Hanson sold 3,729 shares of Capital One Financial stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $205.00, for a total transaction of $764,445.00. Following the completion of the transaction, the insider directly owned 40,230 shares in the company, valued at approximately $8,247,150. The trade was a 8.48% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 46,404 shares of company stock worth $8,884,404. Company insiders own 0.78% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.