Zacks Investment Research downgraded shares of Capital One Financial Corporation (NYSE:COF) from a buy rating to a hold rating in a research note published on Monday morning.
According to Zacks, “Capital One’s shares have underperformed the industry in the last six months. The company surpassed the Zacks Consensus Estimate for earnings only in two of the trailing four quarters. The company’s third quarter 2017 results were driven by higher revenues and easing margin pressure, while a rise in operating expenses and higher credit costs were undermining factors. A solid liquidity position and strength in the credit card and online banking businesses position it well for long term growth. The acquisition of Cabela's credit card portfolio further supports the company's prospects. However, continuously increasing expenses (mainly due to a rise in salaries and marketing costs) will hurt the company's bottom-line growth. Also, its asset quality is expected to remain under pressure due to losses in the auto portfolio and U.S. card business.”
A number of other analysts have also commented on the stock. Morgan Stanley lowered shares of Capital One Financial Corporation from an overweight rating to an equal weight rating and decreased their price target for the company from $97.00 to $83.00 in a research note on Friday, September 8th. Robert W. Baird restated a hold rating and set a $84.00 price target on shares of Capital One Financial Corporation in a research note on Tuesday, September 5th. Keefe, Bruyette & Woods restated a buy rating and set a $106.00 price target on shares of Capital One Financial Corporation in a research note on Friday, September 15th. CIBC upgraded shares of Capital One Financial Corporation from an underperform rating to a market perform rating in a research note on Friday, July 21st. Finally, Wells Fargo & Company started coverage on shares of Capital One Financial Corporation in a research note on Tuesday, October 10th. They set an outperform rating and a $96.00 price target for the company. Three investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. Capital One Financial Corporation has an average rating of Hold and an average target price of $95.00.
Capital One Financial Corporation (NYSE:COF) last announced its quarterly earnings results on Tuesday, October 24th. The financial services provider reported $2.42 EPS for the quarter, beating the Zacks’ consensus estimate of $2.15 by $0.27. The business had revenue of $6.99 billion during the quarter, compared to analyst estimates of $6.81 billion. Capital One Financial Corporation had a net margin of 13.34% and a return on equity of 8.25%. Capital One Financial Corporation’s quarterly revenue was up 8.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.03 EPS.
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In related news, Director Ann F. Hackett sold 11,055 shares of the business’s stock in a transaction dated Wednesday, October 25th. The stock was sold at an average price of $91.18, for a total value of $1,007,994.90. Following the sale, the director now directly owns 69,066 shares in the company, valued at approximately $6,297,437.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Mayo A. Shattuck III sold 24,167 shares of the business’s stock in a transaction dated Friday, October 27th. The shares were sold at an average price of $92.71, for a total value of $2,240,522.57. Following the completion of the sale, the director now owns 59,613 shares in the company, valued at $5,526,721.23. The disclosure for this sale can be found here. Insiders own 1.73% of the company’s stock.
A number of institutional investors have recently made changes to their positions in COF. BlackRock Inc. raised its stake in Capital One Financial Corporation by 3,066.1% in the 1st quarter. BlackRock Inc. now owns 31,294,690 shares of the financial services provider’s stock valued at $2,711,996,000 after acquiring an additional 30,306,250 shares during the period. Davis Selected Advisers raised its stake in Capital One Financial Corporation by 112.8% in the 2nd quarter. Davis Selected Advisers now owns 8,061,905 shares of the financial services provider’s stock valued at $666,075,000 after acquiring an additional 4,274,053 shares during the period. AQR Capital Management LLC raised its stake in Capital One Financial Corporation by 71.8% in the 1st quarter. AQR Capital Management LLC now owns 3,255,551 shares of the financial services provider’s stock valued at $282,126,000 after acquiring an additional 1,360,057 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in Capital One Financial Corporation by 107.8% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,989,104 shares of the financial services provider’s stock valued at $164,340,000 after acquiring an additional 1,031,829 shares during the period. Finally, Vanguard Group Inc. raised its stake in Capital One Financial Corporation by 3.2% in the 1st quarter. Vanguard Group Inc. now owns 31,454,174 shares of the financial services provider’s stock valued at $2,725,818,000 after acquiring an additional 963,101 shares during the period. Institutional investors and hedge funds own 87.51% of the company’s stock.
About Capital One Financial Corporation
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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