North Reef Capital Management LP Buys Shares of 18,659 Capital One Financial Corporation $COF

Key Points

• North Reef Capital Management opened a new position in Capital One Financial, buying 18,659 shares valued at about $3.4 million in the first quarter.
• Wall Street remains broadly positive on COF, with 20 Buy ratings and an average analyst target price of $259.82, despite several firms trimming price targets recently.
• Capital One reported strong quarterly results, posting EPS of $5.81 versus the $4.79 estimate and revenue of $15.83 billion, while also paying a $0.80 quarterly dividend.

North Reef Capital Management LP bought a new position in Capital One Financial Corporation (NYSE:COF) in the 1st quarter, according to its most recent filing with the SEC. The institutional investor bought 18,659 shares of the financial services provider's stock, valued at approximately $3,404,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Brighton Jones LLC grew its holdings in Capital One Financial by 330.1% during the 4th quarter. Brighton Jones LLC now owns 13,587 shares of the financial services provider's stock worth $2,423,000 after acquiring an additional 10,428 shares in the last quarter. Intech Investment Management LLC raised its holdings in shares of 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 purchasing an additional 2,753 shares in the last quarter. Sivia Capital Partners LLC lifted its position in shares of Capital One Financial by 118.3% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,300 shares of the financial services provider's stock worth $702,000 after purchasing an additional 1,788 shares during the period. Flow Traders U.S. LLC purchased a new stake in shares of Capital One Financial in the 2nd quarter worth approximately $218,000. Finally, Jump Financial LLC purchased a new stake in shares of Capital One Financial in the 2nd quarter worth approximately $1,086,000. Institutional investors own 89.84% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Bank of America cut their price objective on shares of Capital One Financial from $234.00 to $231.00 and set a "buy" rating on the stock in a report on Thursday, July 9th. Argus lowered their target price on Capital One Financial from $260.00 to $250.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. Truist Financial dropped their target price on Capital One Financial from $275.00 to $255.00 and set a "buy" rating on the stock in a research report on Thursday, April 23rd. Wall Street Zen upgraded Capital One Financial from a "hold" rating to a "buy" rating in a report on Saturday. Finally, The Goldman Sachs Group reduced their price target on Capital One Financial from $300.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, April 7th. Twenty research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Capital One Financial currently has an average rating of "Moderate Buy" and a consensus target price of $259.82.

Capital One Financial Trading Up 1.3%

NYSE COF opened at $202.53 on Friday. Capital One Financial Corporation has a 52 week low of $174.24 and a 52 week high of $259.64. The company has a 50 day moving average price of $195.38 and a 200 day moving average price of $200.56. The company has a quick ratio of 1.03, a current ratio of 1.02 and a debt-to-equity ratio of 0.39. The firm has a market cap of $126.03 billion, a PE ratio of 12.53, a price-to-earnings-growth ratio of 0.76 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 for the quarter, beating 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 earnings per share. Capital One Financial's revenue was up 26.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Capital One Financial Corporation will post 20.13 EPS for the current fiscal year.

Capital One Financial Dividend Announcement

The firm also recently disclosed 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 of this dividend was Tuesday, May 19th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.6%. Capital One Financial's dividend payout ratio (DPR) is presently 19.80%.

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.

Insiders Place Their Bets

In related news, insider Celia Karam sold 1,749 shares of the business's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $192.58, for a total transaction of $336,822.42. Following the transaction, the insider directly owned 61,579 shares in the company, valued at $11,858,883.82. The trade was a 2.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $728,000.00. Following the transaction, the general counsel owned 90,194 shares in the company, valued at approximately $18,760,352. This trade represents a 3.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 8,749 shares of company stock valued at $1,708,577 in the last three months. 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.

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