Maverick Capital Ltd. Cuts Stock Holdings in Capital One Financial Corporation $COF

Key Points

• Maverick Capital reduced its Capital One stake by 3.7% in the first quarter, selling 47,941 shares and retaining 1.25 million shares valued at approximately $227.8 million. Capital One represented 2.6% of the fund’s portfolio, while institutional investors collectively owned 89.84% of the stock.
• Capital One reported strong quarterly results, with EPS of $5.81 beating estimates by $1.02 and revenue of $15.83 billion rising 26.9% year over year. The company also maintained its quarterly dividend at $0.80 per share, equivalent to a 1.5% annualized yield.
• Analysts remain broadly positive, with 20 Buy ratings and four Holds producing a “Moderate Buy” consensus and a $259.82 target price. COF opened at $206.86, while recent insider transactions showed executives selling shares under pre-arranged trading plans.

Maverick Capital Ltd. reduced its stake in Capital One Financial Corporation (NYSE:COF - Free Report) by 3.7% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 1,248,456 shares of the financial services provider's stock after selling 47,941 shares during the quarter. Capital One Financial makes up 2.6% of Maverick Capital Ltd.'s investment portfolio, making the stock its 15th largest holding. Maverick Capital Ltd. owned 0.20% of Capital One Financial worth $227,756,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently bought and sold shares of the company. Brighton Jones LLC boosted its holdings in Capital One Financial by 330.1% during the fourth quarter. Brighton Jones LLC now owns 13,587 shares of the financial services provider's stock worth $2,423,000 after purchasing an additional 10,428 shares during the last quarter. Intech Investment Management LLC increased its stake in Capital One Financial by 44.3% in the 1st quarter. Intech Investment Management LLC now owns 8,968 shares of the financial services provider's stock valued at $1,608,000 after buying an additional 2,753 shares during the last quarter. Sivia Capital Partners LLC lifted its position in shares of Capital One Financial by 118.3% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,300 shares of the financial services provider's stock worth $702,000 after buying an additional 1,788 shares in the last quarter. Flow Traders U.S. LLC bought a new position in shares of Capital One Financial during the 2nd quarter worth approximately $218,000. Finally, Jump Financial LLC purchased a new position in shares of Capital One Financial in the 2nd quarter worth approximately $1,086,000. 89.84% of the stock is owned by hedge funds and other institutional investors.

Capital One Financial Stock Performance

NYSE COF opened at $206.86 on Tuesday. The firm has a market cap of $128.73 billion, a P/E ratio of 12.80, a price-to-earnings-growth ratio of 0.75 and a beta of 1.02. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.39. The company's 50 day moving average is $195.78 and its 200-day moving average is $199.85. Capital One Financial Corporation has a 12-month low of $174.24 and a 12-month high of $259.64.

Capital One Financial (NYSE:COF - Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $5.81 EPS for the quarter, topping the consensus estimate of $4.79 by $1.02. Capital One Financial had a net margin of 13.37% and a return on equity of 11.28%. The company had revenue of $15.83 billion during the quarter, compared to the consensus estimate of $15.76 billion. During the same period last year, the firm earned $5.48 EPS. Capital One Financial's revenue for the quarter was up 26.9% on a year-over-year basis. Sell-side analysts predict that Capital One Financial Corporation will post 20.13 earnings per share for the current year.

Capital One Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Tuesday, May 19th were given a $0.80 dividend. The ex-dividend date was Tuesday, May 19th. This represents a $3.20 annualized dividend and a dividend yield of 1.5%. Capital One Financial's payout ratio is 19.80%.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on COF. Evercore dropped their target price on shares of Capital One Financial from $265.00 to $222.00 and set an "outperform" rating on the stock in a research note on Monday, April 6th. UBS Group lifted their price target 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. Deutsche Bank Aktiengesellschaft dropped their price objective on Capital One Financial from $256.00 to $250.00 and set a "hold" rating on the stock in a research note on Wednesday, April 22nd. Piper Sandler started coverage on Capital One Financial in a report on Monday, June 29th. They set an "overweight" rating and a $254.00 price objective for the company. Finally, Wall Street Zen raised Capital One Financial from a "hold" rating to a "buy" rating in a research report on Saturday. Twenty equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $259.82.

Insider Buying and Selling at Capital One Financial

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 stock was sold at an average price of $208.00, for a total transaction of $728,000.00. Following the sale, the general counsel directly owned 90,194 shares in the company, valued at approximately $18,760,352. The trade was a 3.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed 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 firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $192.58, for a total value of $336,822.42. Following the completion of the transaction, the insider owned 61,579 shares of the company's stock, valued at approximately $11,858,883.82. This represents 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. Over the last quarter, insiders sold 8,749 shares of company stock valued at $1,708,577. 0.78% of the stock is owned by company insiders.

About Capital One Financial

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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