Capital One Financial (NYSE:COF) Downgraded to Hold at Zacks Investment Research

Share on StockTwits

Zacks Investment Research cut shares of Capital One Financial (NYSE:COF) from a buy rating to a hold rating in a research report released on Thursday, Zacks.com reports. Zacks Investment Research currently has $103.00 price objective on the financial services provider’s stock.

According to Zacks, “Shares of Capital One have outperformed the industry over the past three months. It has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Its second-quarter 2019 results reflect loan growth and strength in card business. Solid liquidity position, strength in credit card and online banking businesses, and continued rise in loan demand are likely to further support top-line growth. Further, strong balance sheet and restructuring initiatives are expected to support financials. However, mounting operating costs mainly due to continued investments in technology and higher marketing costs might hurt bottom-line growth to some extent. Additionally, deteriorating credit quality remains a major near-term concern as it will likely hurt the company's financials to some extent.”

Other equities research analysts also recently issued research reports about the stock. ValuEngine raised shares of Worldline from a hold rating to a buy rating in a research note on Tuesday. Jefferies Financial Group set a €50.00 ($58.14) target price on shares of Lanxess and gave the company a neutral rating in a research note on Tuesday, May 14th. Deutsche Bank reissued a buy rating and issued a $80.00 target price on shares of Bayerische Motoren Werke in a research note on Monday, July 8th. BMO Capital Markets set a $140.00 target price on shares of SAP and gave the company a hold rating in a research note on Friday, July 19th. Finally, Piper Jaffray Companies set a $175.00 target price on shares of Wayfair and gave the company a buy rating in a research note on Friday, July 19th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and twelve have issued a buy rating to the company. The company presently has an average rating of Buy and a consensus price target of $105.58.

COF stock traded up $2.60 during trading on Thursday, hitting $98.50. 1,806,481 shares of the company’s stock traded hands, compared to its average volume of 2,081,967. Capital One Financial has a 52 week low of $69.90 and a 52 week high of $101.26. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.00 and a quick ratio of 1.00. The firm has a fifty day simple moving average of $91.12. The firm has a market capitalization of $44.89 billion, a PE ratio of 9.05, a price-to-earnings-growth ratio of 1.06 and a beta of 1.25.

Capital One Financial (NYSE:COF) last announced its earnings results on Thursday, July 18th. The financial services provider reported $3.37 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.84 by $0.53. Capital One Financial had a net margin of 17.50% and a return on equity of 10.68%. The business had revenue of $7.12 billion for the quarter, compared to the consensus estimate of $7.01 billion. During the same quarter in the prior year, the firm posted $3.71 earnings per share. The business’s revenue for the quarter was down .9% on a year-over-year basis. As a group, analysts expect that Capital One Financial will post 11.44 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Shareholders of record on Monday, August 5th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 1.62%. The ex-dividend date of this dividend is Friday, August 2nd. Capital One Financial’s dividend payout ratio (DPR) is 14.71%.

In other Capital One Financial news, insider Jory A. Berson sold 9,329 shares of the firm’s stock in a transaction dated Friday, July 5th. The shares were sold at an average price of $93.00, for a total transaction of $867,597.00. Following the transaction, the insider now owns 59,353 shares of the company’s stock, valued at approximately $5,519,829. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Michael J. Wassmer sold 8,212 shares of the firm’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $95.03, for a total transaction of $780,386.36. Following the transaction, the insider now directly owns 84,679 shares in the company, valued at approximately $8,047,045.37. The disclosure for this sale can be found here. Insiders have sold a total of 55,149 shares of company stock worth $5,053,283 in the last three months. Insiders own 1.43% of the company’s stock.

Several large investors have recently added to or reduced their stakes in COF. Norges Bank bought a new stake in shares of Capital One Financial in the 4th quarter valued at about $305,543,000. FMR LLC boosted its holdings in shares of Capital One Financial by 7.3% in the 1st quarter. FMR LLC now owns 18,589,892 shares of the financial services provider’s stock valued at $1,518,608,000 after buying an additional 1,259,001 shares in the last quarter. Ceredex Value Advisors LLC boosted its holdings in shares of Capital One Financial by 104.5% in the 1st quarter. Ceredex Value Advisors LLC now owns 1,005,350 shares of the financial services provider’s stock valued at $82,127,000 after buying an additional 513,675 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Capital One Financial by 6.3% in the 4th quarter. Geode Capital Management LLC now owns 6,275,759 shares of the financial services provider’s stock valued at $473,568,000 after buying an additional 370,154 shares in the last quarter. Finally, American Century Companies Inc. bought a new stake in shares of Capital One Financial in the 4th quarter valued at about $27,440,000. Institutional investors and hedge funds own 88.57% of the company’s stock.

Capital One Financial Company Profile

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking.

Featured Story: How does a margin account work?

Get a free copy of the Zacks research report on Capital One Financial (COF)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Capital One Financial (NYSE:COF)

Receive News & Ratings for Capital One Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Capital One Financial and related companies with MarketBeat.com's FREE daily email newsletter.