MKP Capital Management L.L.C. Purchases New Position in Capital One Financial Corporation $COF

Key Points

• MKP Capital Management L.L.C. acquired a new stake of 375,000 shares in Capital One (NYSE: COF) during Q3, worth about $79.7 million, representing roughly 3.1% of MKP’s portfolio and 0.06% of COF outstanding.
• Capital One's latest quarter showed an EPS miss ($3.86 vs. $4.14) despite revenue rising 53.3% year‑over‑year, and analysts forecast about $15.65 in EPS for the current fiscal year.
• The firm pays a $0.80 quarterly dividend (annualized $3.20, yield 1.6%) but has a high payout ratio of 108%, while the analyst consensus is a "Moderate Buy" with an average price target of $274.70.

MKP Capital Management L.L.C. acquired a new stake in Capital One Financial Corporation (NYSE:COF) during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 375,000 shares of the financial services provider's stock, valued at approximately $79,718,000. Capital One Financial makes up about 3.1% of MKP Capital Management L.L.C.'s portfolio, making the stock its 8th biggest position. MKP Capital Management L.L.C. owned 0.06% of Capital One Financial at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Cortland Associates Inc. MO bought a new stake in Capital One Financial in the 3rd quarter worth approximately $14,391,000. CIBC Asset Management Inc boosted its stake in shares of Capital One Financial by 53.9% in the 2nd quarter. CIBC Asset Management Inc now owns 88,505 shares of the financial services provider's stock worth $18,830,000 after buying an additional 30,991 shares during the last quarter. Meridian Wealth Management LLC grew its holdings in shares of Capital One Financial by 334.8% in the third quarter. Meridian Wealth Management LLC now owns 9,404 shares of the financial services provider's stock worth $1,999,000 after acquiring an additional 7,241 shares during the period. Montecito Bank & Trust bought a new stake in shares of Capital One Financial in the third quarter worth $647,000. Finally, National Pension Service increased its position in Capital One Financial by 4.0% during the third quarter. National Pension Service now owns 1,552,736 shares of the financial services provider's stock valued at $330,081,000 after acquiring an additional 59,100 shares during the last quarter. 89.84% of the stock is currently owned by hedge funds and other institutional investors.

Capital One Financial Price Performance

Shares of NYSE:COF opened at $195.64 on Thursday. The company has a market capitalization of $121.67 billion, a P/E ratio of 66.09, a P/E/G ratio of 0.58 and a beta of 1.14. Capital One Financial Corporation has a 1-year low of $143.22 and a 1-year high of $259.64. The firm's 50 day simple moving average is $224.19 and its two-hundred day simple moving average is $222.50. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.04 and a quick ratio of 1.04.

Capital One Financial (NYSE:COF - Get Free Report) last announced its quarterly earnings data on Thursday, January 22nd. The financial services provider reported $3.86 EPS for the quarter, missing the consensus estimate of $4.14 by ($0.28). Capital One Financial had a net margin of 3.54% and a return on equity of 10.68%. During the same quarter in the prior year, the company earned $2.67 EPS. The business's revenue for the quarter was up 53.3% compared to the same quarter last year. Research analysts expect that Capital One Financial Corporation will post 15.65 EPS for the current fiscal year.

Capital One Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Thursday, February 19th were given a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Thursday, February 19th. Capital One Financial's payout ratio is presently 108.11%.

Insiders Place Their Bets

In related news, insider Jason P. Hanson sold 3,729 shares of the business's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $205.00, for a total value of $764,445.00. Following the transaction, the insider directly owned 40,230 shares of the company's stock, valued at approximately $8,247,150. The trade was a 8.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Lia Dean sold 3,284 shares of the company's stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $223.68, for a total value of $734,565.12. Following the completion of the transaction, the insider owned 70,162 shares of the company's stock, valued at $15,693,836.16. The trade was a 4.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 67,933 shares of company stock valued at $14,363,897. Insiders own 1.26% of the company's stock.

Analyst Upgrades and Downgrades

COF has been the topic of several research reports. Barclays dropped their target price on Capital One Financial from $294.00 to $287.00 and set an "overweight" rating on the stock in a research report on Friday, January 23rd. JPMorgan Chase & Co. raised their price objective on shares of Capital One Financial from $237.00 to $256.00 and gave the stock a "neutral" rating in a report on Monday, January 12th. The Goldman Sachs Group restated a "buy" rating and set a $300.00 target price on shares of Capital One Financial in a research report on Tuesday, January 6th. Truist Financial reduced their target price on shares of Capital One Financial from $290.00 to $275.00 and set a "buy" rating for the company in a report on Monday, January 26th. Finally, Evercore dropped their price target on shares of Capital One Financial from $290.00 to $265.00 and set an "outperform" rating on the stock in a research note on Tuesday, January 27th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $274.70.

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.

Want to see what other hedge funds are holding COF? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Capital One Financial Corporation (NYSE:COF - Free Report).

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.