Capital One Financial (COF) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of Capital One Financial (NYSE:COF) from a buy rating to a hold rating in a research report report published on Wednesday.
According to Zacks, “Capital One’s shares have outperformed the industry over the past year. Further, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. A strong liquidity position, strength in its credit card and online banking businesses, higher interest rates and solid loan balance will aid growth further as well. Also, benefits from the lower tax rates and restructuring initiatives will support its financials. However, mounting operating expenses mainly due to investments in the franchise are expected to hurt bottom line growth to some extent. Further, deteriorating asset quality remains a major concern for the company.”
A number of other equities analysts have also commented on the company. BMO Capital Markets raised their price objective on Capital One Financial from $132.00 to $135.00 and gave the stock an outperform rating in a research note on Monday, July 30th. Piper Jaffray Companies upgraded Capital One Financial from a neutral rating to an overweight rating in a research note on Thursday, June 14th. Oppenheimer set a $116.00 price objective on Capital One Financial and gave the stock a buy rating in a research note on Tuesday, September 18th. Morgan Stanley raised their price objective on Capital One Financial from $104.00 to $109.00 and gave the stock an equal weight rating in a research note on Friday, July 20th. Finally, UBS Group reduced their target price on Capital One Financial from $116.00 to $113.00 and set a buy rating on the stock in a report on Tuesday, August 7th. Eight research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $111.10.
Capital One Financial (NYSE:COF) last announced its earnings results on Thursday, July 19th. The financial services provider reported $3.22 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.63 by $0.59. Capital One Financial had a return on equity of 10.44% and a net margin of 10.73%. The company had revenue of $7.19 billion for the quarter, compared to analyst estimates of $6.95 billion. During the same quarter last year, the company earned $1.96 earnings per share. The firm’s quarterly revenue was up 7.3% compared to the same quarter last year. Equities research analysts predict that Capital One Financial will post 11.04 earnings per share for the current year.
In related news, insider Timothy P. Golden sold 4,073 shares of the stock in a transaction dated Thursday, August 2nd. The shares were sold at an average price of $95.85, for a total value of $390,397.05. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Richard D. Fairbank sold 242,090 shares of the stock in a transaction dated Tuesday, July 24th. The stock was sold at an average price of $99.33, for a total transaction of $24,046,799.70. The disclosure for this sale can be found here. Over the last three months, insiders sold 281,726 shares of company stock valued at $27,993,497. 1.40% of the stock is owned by insiders.
A number of hedge funds have recently added to or reduced their stakes in COF. Farmers National Bank bought a new position in shares of Capital One Financial during the second quarter valued at approximately $102,000. TLP Group LLC bought a new position in shares of Capital One Financial during the first quarter valued at approximately $103,000. Integrated Investment Consultants LLC bought a new position in shares of Capital One Financial during the second quarter valued at approximately $108,000. Kaizen Advisory LLC increased its stake in shares of Capital One Financial by 161.0% during the second quarter. Kaizen Advisory LLC now owns 1,198 shares of the financial services provider’s stock valued at $110,000 after purchasing an additional 739 shares in the last quarter. Finally, Sun Life Financial INC increased its stake in shares of Capital One Financial by 518.3% during the second quarter. Sun Life Financial INC now owns 1,317 shares of the financial services provider’s stock valued at $121,000 after purchasing an additional 1,104 shares in the last quarter. 88.29% of the stock is owned by institutional investors.
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.
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