UBS Group Forecasts Strong Price Appreciation for Capital One Financial (NYSE:COF) Stock

Key Points

• UBS Group raised its price target on Capital One Financial from $270 to $275 and kept a buy rating, implying about 33% upside from the stock’s prior close.
• Other analysts remain generally constructive, with several firms issuing buy/overweight ratings despite some target cuts. Overall, Capital One carries an average Moderate Buy rating and a consensus price target of about $260.43.
• The stock was trading around $206.69 and the company recently reported mixed quarterly results, missing EPS and revenue estimates even as revenue rose sharply year over year. Analysts still expect full-year EPS of 19.53, while institutional investors continue to own most of the shares.

Capital One Financial (NYSE:COF) had its price objective upped by analysts at UBS Group from $270.00 to $275.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the financial services provider's stock. UBS Group's price target would suggest a potential upside of 33.05% from the stock's previous close.

A number of other brokerages have also weighed in on COF. Deutsche Bank Aktiengesellschaft cut their target price on shares of Capital One Financial from $256.00 to $250.00 and set a "hold" rating on the stock in a research report on Wednesday, April 22nd. Evercore reduced their price objective on Capital One Financial from $265.00 to $222.00 and set an "outperform" rating on the stock in a research report on Monday, April 6th. Piper Sandler started coverage on Capital One Financial in a research report on Monday, June 29th. They issued an "overweight" rating and a $254.00 target price for the company. BTIG Research lifted their price target on Capital One Financial from $224.00 to $259.00 and gave the company a "buy" rating in a research note on Tuesday, June 30th. Finally, The Goldman Sachs Group reduced their price target on Capital One Financial from $300.00 to $260.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Eighteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $260.43.

Capital One Financial Trading Up 0.1%

Shares of COF stock opened at $206.69 on Tuesday. Capital One Financial has a fifty-two week low of $174.24 and a fifty-two week high of $259.64. The stock's fifty day moving average price is $191.12 and its two-hundred day moving average price is $204.59. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.03 and a current ratio of 1.03. The company has a market cap of $128.62 billion, a PE ratio of 72.55, a P/E/G ratio of 0.74 and a beta of 1.02.

Capital One Financial (NYSE:COF - Get Free Report) last announced its quarterly earnings data on Tuesday, April 21st. The financial services provider reported $4.42 earnings per share for the quarter, missing the consensus estimate of $5.08 by ($0.66). Capital One Financial had a return on equity of 10.59% and a net margin of 4.29%.The business had revenue of $15.23 billion for the quarter, compared to the consensus estimate of $15.68 billion. During the same quarter in the prior year, the company earned $4.06 earnings per share. Capital One Financial's quarterly revenue was up 52.3% compared to the same quarter last year. Equities analysts predict that Capital One Financial will post 19.53 EPS for the current fiscal year.

Insider Activity

In related news, General Counsel Matthew W. Cooper sold 3,500 shares of Capital One Financial stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $183.93, for a total value of $643,755.00. Following the transaction, the general counsel directly owned 97,194 shares of the company's stock, valued at $17,876,892.42. The trade was a 3.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Celia Karam sold 1,749 shares of the company's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $192.58, for a total value of $336,822.42. Following the completion of the sale, the insider owned 61,579 shares in the company, valued at $11,858,883.82. The trade was a 2.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.78% of the company's stock.

Institutional Investors Weigh In On Capital One Financial

A number of institutional investors have recently modified their holdings of COF. Vanguard Group Inc. boosted its position in Capital One Financial by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 56,897,238 shares of the financial services provider's stock valued at $13,789,615,000 after acquiring an additional 360,071 shares during the last quarter. Franklin Resources Inc. raised its position in shares of Capital One Financial by 5.4% in the 4th quarter. Franklin Resources Inc. now owns 12,476,462 shares of the financial services provider's stock worth $3,023,795,000 after acquiring an additional 638,158 shares in the last quarter. Morgan Stanley lifted its stake in shares of Capital One Financial by 3.9% in the 4th quarter. Morgan Stanley now owns 8,677,981 shares of the financial services provider's stock valued at $2,103,196,000 after purchasing an additional 323,350 shares during the period. Norges Bank bought a new stake in shares of Capital One Financial during the 4th quarter valued at about $2,089,803,000. Finally, Davis Selected Advisers boosted its position in shares of Capital One Financial by 2.8% during the 4th quarter. Davis Selected Advisers now owns 8,614,766 shares of the financial services provider's stock valued at $2,087,878,000 after purchasing an additional 234,649 shares in the last quarter. 89.84% of the stock is owned by institutional investors.

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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