Meritage Group LP Buys Shares of 1,321,428 Capital One Financial Corporation $COF

Key Points

• Meritage Group LP acquired 1,321,428 Capital One shares worth approximately $265.1 million, making COF its third-largest holding and representing about 10.2% of its portfolio. Institutional investors and hedge funds own 89.84% of the stock.
• Capital One reported stronger-than-expected quarterly results, with EPS of $5.81 versus the $4.79 consensus and revenue of $15.83 billion, up 26.9% year over year. The company also declared a quarterly dividend of $0.80 per share, while analysts maintain a “Moderate Buy” consensus and a $259.14 price target.
• Investor risks include rising consumer-credit pressure and insider selling: the company’s 30-plus-day delinquency rate reportedly increased to 3.48% in July, while insiders sold 26,267 shares worth $5.6 million over the past 90 days.

Meritage Group LP purchased a new position in Capital One Financial Corporation (NYSE:COF - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 1,321,428 shares of the financial services provider's stock, valued at approximately $265,105,000. Capital One Financial comprises 10.2% of Meritage Group LP's portfolio, making the stock its 3rd biggest holding. Meritage Group LP owned approximately 0.22% of Capital One Financial as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of the stock. HighTower Advisors LLC raised its stake in shares of Capital One Financial by 18.1% during the 4th quarter. HighTower Advisors LLC now owns 353,767 shares of the financial services provider's stock worth $85,739,000 after purchasing an additional 54,263 shares in the last quarter. Swiss Life Asset Management Ltd grew its stake in shares of Capital One Financial by 11.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 115,843 shares of the financial services provider's stock valued at $28,076,000 after buying an additional 11,651 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of Capital One Financial by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 56,897,238 shares of the financial services provider's stock valued at $13,789,615,000 after buying an additional 360,071 shares in the last quarter. Nomura Asset Management Co. Ltd. increased its holdings in Capital One Financial by 2.9% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 223,977 shares of the financial services provider's stock worth $54,283,000 after buying an additional 6,225 shares during the last quarter. Finally, Sculptor Capital LP acquired a new position in Capital One Financial in the first quarter worth approximately $33,932,000. 89.84% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, insider Ravi Raghu sold 9,726 shares of Capital One Financial stock in a transaction on Friday, July 31st. The shares were sold at an average price of $209.78, for a total value of $2,040,320.28. Following the transaction, the insider owned 26,328 shares in the company, valued at $5,523,087.84. This trade represents a 26.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Timothy P. Golden sold 3,487 shares of the business's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $211.00, for a total transaction of $735,757.00. Following the transaction, the chief accounting officer directly owned 7,429 shares of the company's stock, valued at approximately $1,567,519. This represents a 31.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 26,267 shares of company stock worth $5,617,648 in the last ninety days. 0.78% of the stock is owned by insiders.

Capital One Financial Stock Up 0.1%

Shares of COF stock opened at $218.05 on Monday. The stock's 50 day simple moving average is $208.66 and its 200 day simple moving average is $198.03. Capital One Financial Corporation has a twelve month low of $174.24 and a twelve month high of $259.64. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.02 and a current ratio of 1.02. The company has a market capitalization of $133.77 billion, a price-to-earnings ratio of 13.49, a PEG ratio of 0.80 and a beta of 1.02.

Capital One Financial (NYSE:COF - Get Free Report) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $5.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.79 by $1.02. Capital One Financial had a return on equity of 11.28% and a net margin of 13.37%.The firm had revenue of $15.83 billion during the quarter, compared to analysts' expectations of $15.76 billion. During the same quarter in the prior year, the business earned $5.48 earnings per share. The company's revenue was up 26.9% on a year-over-year basis. As a group, research analysts predict that Capital One Financial Corporation will post 20.29 EPS for the current year.

Capital One Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 17th will be issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Monday, August 17th. Capital One Financial's dividend payout ratio is currently 19.80%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on COF. Piper Sandler started coverage on shares of Capital One Financial in a research note on Monday, June 29th. They issued an "overweight" rating and a $254.00 target price for the company. Wall Street Zen lowered shares of Capital One Financial from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Barclays cut their price target on shares of Capital One Financial from $242.00 to $240.00 and set an "overweight" rating on the stock in a report on Wednesday, July 22nd. Weiss Ratings raised shares of Capital One Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, August 13th. Finally, BTIG Research upped their price objective on shares of Capital One Financial from $224.00 to $259.00 and gave the stock a "buy" rating in a report on Tuesday, June 30th. Twenty-one analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Capital One Financial presently has an average rating of "Moderate Buy" and a consensus price target of $259.14.

Key Stories Impacting Capital One Financial

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

• Positive Sentiment: COF’s latest quarterly results exceeded expectations, with earnings per share of $5.81 versus the $4.79 consensus and revenue of $15.83 billion. The company’s revenue increased 26.9% year over year, helping drive a roughly 9.6% gain since the earnings release. Capital One Up 9.6% Since Last Earnings Report
• Positive Sentiment: Analyst expectations remain constructive. The recent median price target cited for COF is $254.50, above the stock’s referenced trading level, while Bank of America reportedly maintained a Buy rating. Investors are also looking for continued earnings growth and potential valuation expansion. Bank of America Maintains Buy Rating Why Capital One Could See Earnings Growth and Multiple Expansion
• Neutral Sentiment: Capital One will redeem all 1 million outstanding shares of its Series M fixed-rate reset non-cumulative perpetual preferred stock on September 1, 2026. The action is a capital-management decision with limited direct impact on operating earnings, though investors may monitor its effect on the company’s capital structure. Capital One Announces Series M Preferred Stock Redemption
• Negative Sentiment: Consumer-credit concerns are weighing on the shares. Industry credit-card delinquencies remain elevated, and Capital One’s 30-plus-day delinquency rate reportedly edged up to 3.48% in July, despite an improvement in net charge-offs. This mixed data is particularly important because Capital One has substantial credit-card exposure. Capital One Falls as Investors Weigh Consumer Credit Pressure
• Negative Sentiment: Bank of America also noted slower card growth, adding to concerns that future loan and revenue growth could moderate. Separately, reported insider activity showed substantial selling and no open-market purchases during the past six months, a potentially cautious signal, although insider sales can reflect compensation or diversification. Bank of America Sends Message on Capital One Stock

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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