Traders Buy Large Volume of Call Options on Capital One Financial (NYSE:COF)

Key Points

• On Wednesday, Capital One Financial experienced a significant surge in options trading with investors purchasing 21,264 call options, a 49% increase compared to the average volume.
• Insider Michael Zamsky sold 5,515 shares for over $1.15 million, which reduced his ownership by 16.77%, while General Counsel Matthew W. Cooper also sold 2,000 shares valued at approximately $424,000.
• Capital One Financial reported quarterly earnings exceeding expectations, with an EPS of $5.95 compared to a consensus estimate of $4.25, alongside a revenue of $15.36 billion.

Capital One Financial Corporation (NYSE:COF) saw unusually large options trading on Wednesday. Stock investors purchased 21,264 call options on the company. This represents an increase of approximately 49% compared to the average volume of 14,308 call options.

Insider Buying and Selling at Capital One Financial

In other Capital One Financial news, insider Michael Zamsky sold 5,515 shares of the firm's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $209.59, for a total transaction of $1,155,888.85. Following the sale, the insider owned 27,364 shares in the company, valued at $5,735,220.76. This trade represents a 16.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Matthew W. Cooper sold 2,000 shares of Capital One Financial stock in a transaction dated Thursday, October 2nd. The stock was sold at an average price of $211.99, for a total value of $423,980.00. Following the completion of the transaction, the general counsel owned 98,486 shares in the company, valued at approximately $20,878,047.14. This represents a 1.99% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 13,184 shares of company stock worth $2,799,248 over the last 90 days. Corporate insiders own 1.26% of the company's stock.

Institutional Trading of Capital One Financial

Several large investors have recently bought and sold shares of COF. Moisand Fitzgerald Tamayo LLC grew its stake in shares of Capital One Financial by 103.3% in the 2nd quarter. Moisand Fitzgerald Tamayo LLC now owns 122 shares of the financial services provider's stock valued at $26,000 after buying an additional 62 shares during the period. Olistico Wealth LLC raised its holdings in shares of Capital One Financial by 439.1% in the 2nd quarter. Olistico Wealth LLC now owns 124 shares of the financial services provider's stock valued at $26,000 after purchasing an additional 101 shares in the last quarter. Atlantic Edge Private Wealth Management LLC raised its stake in Capital One Financial by 66.7% during the 2nd quarter. Atlantic Edge Private Wealth Management LLC now owns 125 shares of the financial services provider's stock worth $27,000 after acquiring an additional 50 shares in the last quarter. RMG Wealth Management LLC acquired a new stake in Capital One Financial during the 2nd quarter worth $27,000. Finally, Solstein Capital LLC acquired a new position in Capital One Financial in the second quarter valued at $28,000. Hedge funds and other institutional investors own 89.84% of the company's stock.

Capital One Financial Stock Up 1.4%

COF traded up $3.12 during trading on Wednesday, hitting $220.17. The stock had a trading volume of 7,672,330 shares, compared to its average volume of 3,904,289. The company has a market capitalization of $140.80 billion, a PE ratio of 92.90, a PEG ratio of 0.78 and a beta of 1.18. Capital One Financial has a twelve month low of $143.22 and a twelve month high of $232.45. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.02 and a current ratio of 1.02. The stock has a 50 day simple moving average of $219.16 and a two-hundred day simple moving average of $204.19.

Capital One Financial (NYSE:COF - Get Free Report) last posted its quarterly earnings data on Tuesday, October 21st. The financial services provider reported $5.95 EPS for the quarter, topping the consensus estimate of $4.25 by $1.70. The business had revenue of $15.36 billion during the quarter, compared to the consensus estimate of $15.06 billion. Capital One Financial had a net margin of 2.24% and a return on equity of 12.18%. The business's revenue for the quarter was up 53.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $4.51 earnings per share. On average, research analysts predict that Capital One Financial will post 15.65 earnings per share for the current year.

Capital One Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Stockholders of record on Friday, August 15th were paid a dividend of $0.60 per share. The ex-dividend date of this dividend was Friday, August 15th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.1%. Capital One Financial's payout ratio is currently 123.08%.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on COF shares. Truist Financial lifted their price objective on Capital One Financial from $260.00 to $270.00 and gave the company a "buy" rating in a research note on Friday, September 12th. Wall Street Zen upgraded shares of Capital One Financial from a "hold" rating to a "buy" rating in a research note on Friday, September 26th. Weiss Ratings restated a "hold (c-)" rating on shares of Capital One Financial in a research note on Wednesday, October 8th. Rothschild & Co Redburn began coverage on shares of Capital One Financial in a report on Friday, August 1st. They issued a "buy" rating and a $290.00 target price for the company. Finally, Citigroup increased their price objective on shares of Capital One Financial from $250.00 to $275.00 and gave the company a "buy" rating in a report on Thursday, July 24th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, Capital One Financial currently has an average rating of "Moderate Buy" and a consensus target price of $259.16.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking.

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