Capital One Financial (NYSE:COF) Stock Price Breaks Below 50-Day Moving Average After Insider Selling

Key Points

• Capital One shares fell below their 50-day moving average, trading as low as $201.24 versus a $203.60 average.
• CEO Richard Fairbank sold 90,743 shares for about $18.6 million under a pre-arranged Rule 10b5-1 plan, reducing his stake by 2.24%.
• Quarterly results beat estimates: EPS was $6.69 versus $5.53 expected, while revenue rose 6.4% year over year to $16.31 billion. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $256.50.

Capital One Financial Corporation (NYSE:COF - Get Free Report) passed below its 50 day moving average during trading on Friday following insider selling activity. The stock has a 50 day moving average of $203.60 and traded as low as $201.24. Capital One Financial shares last traded at $202.0350, with a volume of 3,522,336 shares.

Specifically, CEO Richard Fairbank sold 90,743 shares of the business's stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $204.86, for a total value of $18,589,610.98. Following the completion of the transaction, the chief executive officer owned 3,968,520 shares in the company, valued at $812,991,007.20. The trade was a 2.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several equities research analysts recently weighed in on COF shares. Wall Street Zen cut Capital One Financial from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. JPMorgan Chase & Co. increased their price target on shares of Capital One Financial from $227.00 to $241.00 and gave the company an "overweight" rating in a research note on Wednesday, October 21st. BMO Capital Markets raised their price objective on shares of Capital One Financial from $219.00 to $225.00 and gave the stock a "market perform" rating in a report on Wednesday, October 21st. Morgan Stanley reduced their price objective on shares of Capital One Financial from $273.00 to $267.00 and set an "overweight" rating for the company in a research report on Monday, October 12th. Finally, Evercore restated an "outperform" rating and issued a $230.00 target price on shares of Capital One Financial in a report on Tuesday, October 27th. Twenty research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, Capital One Financial has a consensus rating of "Moderate Buy" and an average price target of $256.50.

Capital One Financial Price Performance

The company has a 50-day simple moving average of $203.60 and a 200-day simple moving average of $200.92. The stock has a market cap of $123.94 billion, a PE ratio of 11.93, a PEG ratio of 0.96 and a beta of 1.10. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.02 and a quick ratio of 1.02.

Capital One Financial (NYSE:COF - Get Free Report) last issued its earnings results on Tuesday, October 20th. The financial services provider reported $6.69 EPS for the quarter, topping the consensus estimate of $5.53 by $1.16. Capital One Financial had a net margin of 13.70% and a return on equity of 11.64%. The company had revenue of $16.31 billion for the quarter, compared to analyst estimates of $16.25 billion. During the same period in the previous year, the firm earned $5.95 EPS. The business's revenue was up 6.4% on a year-over-year basis. Sell-side analysts anticipate that Capital One Financial Corporation will post 21.53 EPS for the current fiscal year.

Capital One Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be issued a $0.80 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $3.20 dividend on an annualized basis and a yield of 1.6%. Capital One Financial's dividend payout ratio (DPR) is 18.89%.

Institutional Investors Weigh In On Capital One Financial

A number of hedge funds and other institutional investors have recently modified their holdings of COF. State Street Corp increased its position in Capital One Financial by 107.9% during the 2nd quarter. State Street Corp now owns 57,278,732 shares of the financial services provider's stock valued at $11,491,259,000 after buying an additional 29,724,829 shares in the last quarter. Bank of America Corp DE bought a new stake in shares of Capital One Financial during the 2nd quarter valued at $1,435,311,000. Legal & General Group Plc bought a new position in shares of Capital One Financial during the 2nd quarter valued at approximately $680,983,000. Berkshire Hathaway Inc purchased a new stake in shares of Capital One Financial during the second quarter worth about $601,860,000. Finally, Canada Pension Plan Investment Board bought a new stake in shares of Capital One Financial in the second quarter worth about $482,718,000. 89.84% of the stock is currently owned by institutional investors and hedge funds.

About Capital One Financial

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