Zacks Investment Research cut shares of Capital One Financial Corporation (NYSE:COF) from a hold rating to a sell rating in a research report released on Tuesday morning.
According to Zacks, “Capital One shares have underperformed the Zacks categorized Consumer Loan industry in the last six months. Continuously increasing expenses are likely to hurt the company's profitability, going forward. While the company should continue to benefit from strength in its credit card and online banking businesses as well as an improving interest rate scenario and strengthening economy, deteriorating credit quality remains a major near-term concern. In fact, asset quality is expected to continue to remain under pressure due to losses in the auto portfolio and U.S. card business.”
Several other brokerages have also recently commented on COF. CIBC decreased their target price on shares of Capital One Financial Corporation from $84.00 to $80.00 and set an underperform rating for the company in a report on Wednesday, April 26th. Nomura upgraded shares of Capital One Financial Corporation from a neutral rating to a buy rating and raised their target price for the stock from $97.00 to $105.00 in a report on Wednesday, March 29th. Evercore ISI reiterated an underperform rating and issued a $94.00 target price on shares of Capital One Financial Corporation in a report on Wednesday, April 19th. Morgan Stanley reiterated an overweight rating and issued a $97.00 target price (down from $100.00) on shares of Capital One Financial Corporation in a report on Thursday, July 6th. Finally, Wells Fargo & Company reiterated a market perform rating and issued a $85.00 target price (down from $88.00) on shares of Capital One Financial Corporation in a report on Sunday, May 21st. Six analysts have rated the stock with a sell rating, eight have given a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of Hold and an average price target of $92.90.
Shares of Capital One Financial Corporation (NYSE COF) traded down 0.40% during trading on Tuesday, hitting $82.17. 1,922,627 shares of the company traded hands. The firm has a 50 day moving average price of $79.95 and a 200-day moving average price of $85.59. Capital One Financial Corporation has a one year low of $65.00 and a one year high of $96.92. The stock has a market cap of $39.63 billion, a price-to-earnings ratio of 12.47 and a beta of 1.19.
Capital One Financial Corporation (NYSE:COF) last announced its earnings results on Tuesday, April 25th. The financial services provider reported $1.75 EPS for the quarter, missing the consensus estimate of $1.93 by $0.18. Capital One Financial Corporation had a return on equity of 7.83% and a net margin of 12.96%. The firm had revenue of $6.54 billion during the quarter, compared to analyst estimates of $6.63 billion. During the same quarter in the previous year, the business earned $1.84 earnings per share. The business’s quarterly revenue was down .5% compared to the same quarter last year. Analysts predict that Capital One Financial Corporation will post $7.50 EPS for the current year.
Capital One Financial Corporation announced that its Board of Directors has approved a stock buyback plan on Wednesday, June 28th that permits the company to repurchase $1.85 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 4.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.
In other news, insider Michael Slocum sold 6,276 shares of the business’s stock in a transaction on Friday, May 5th. The shares were sold at an average price of $82.16, for a total value of $515,636.16. Following the sale, the insider now owns 61,905 shares in the company, valued at approximately $5,086,114.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.73% of the stock is currently owned by insiders.
Several large investors have recently modified their holdings of COF. Israel Discount Bank of New York GFN bought a new position in shares of Capital One Financial Corporation during the fourth quarter valued at about $123,000. Quadrant Capital Group LLC increased its position in shares of Capital One Financial Corporation by 2.5% in the first quarter. Quadrant Capital Group LLC now owns 1,472 shares of the financial services provider’s stock valued at $121,000 after buying an additional 36 shares during the period. Guardian Life Insurance Co. of America increased its position in shares of Capital One Financial Corporation by 0.6% in the first quarter. Guardian Life Insurance Co. of America now owns 1,860 shares of the financial services provider’s stock valued at $161,000 after buying an additional 11 shares during the period. SRS Capital Advisors Inc. increased its position in shares of Capital One Financial Corporation by 16.6% in the first quarter. SRS Capital Advisors Inc. now owns 2,289 shares of the financial services provider’s stock valued at $198,000 after buying an additional 326 shares during the period. Finally, Lowe Brockenbrough & Co. Inc. bought a new position in shares of Capital One Financial Corporation during the first quarter valued at about $207,000. Institutional investors own 88.42% of the company’s stock.
Capital One Financial Corporation Company Profile
Capital One Financial Corporation is a diversified financial services holding company. The Company, along with its subsidiaries, offers a range of financial products and services to consumers, small businesses and commercial clients through branches, the Internet and other distribution channels. The Company’s segments include Credit Card, Consumer Banking, Commercial Banking and Other.
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