Capital One Financial (NYSE:COF) Rating Lowered to “Hold” at Wall Street Zen

Capital One Financial (NYSE:COF) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Sunday.

Several other research analysts also recently issued reports on COF. UBS Group upped their price target on shares of Capital One Financial from $270.00 to $275.00 and gave the stock a “buy” rating in a research report on Tuesday, July 7th. Morgan Stanley dropped their target price on shares of Capital One Financial from $300.00 to $273.00 and set an “overweight” rating for the company in a research note on Thursday, April 16th. Piper Sandler assumed coverage on shares of Capital One Financial in a research note on Monday, June 29th. They set an “overweight” rating and a $254.00 price target on the stock. Bank of America lowered their price target on shares of Capital One Financial from $234.00 to $231.00 and set a “buy” rating for the company in a report on Thursday, July 9th. Finally, Rothschild & Co Redburn dropped their price objective on shares of Capital One Financial from $290.00 to $275.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. Twenty equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $259.36.

Capital One Financial Price Performance

Shares of Capital One Financial stock opened at $217.93 on Friday. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $133.70 billion, a price-to-earnings ratio of 13.49, a P/E/G ratio of 0.77 and a beta of 1.02. Capital One Financial has a 1-year low of $174.24 and a 1-year high of $259.64. The firm’s 50-day moving average price is $198.32 and its two-hundred day moving average price is $198.69.

Capital One Financial (NYSE:COF) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $5.81 EPS for the quarter, topping the consensus estimate of $4.79 by $1.02. Capital One Financial had a return on equity of 11.28% and a net margin of 13.37%.The business had revenue of $15.83 billion for the quarter, compared to the consensus estimate of $15.76 billion. During the same period in the previous year, the business earned $5.48 EPS. Capital One Financial’s revenue was up 26.9% compared to the same quarter last year. On average, equities analysts predict that Capital One Financial will post 20.19 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Capital One Financial news, CAO Timothy P. Golden sold 3,487 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $211.00, for a total transaction of $735,757.00. Following the sale, the chief accounting officer directly owned 7,429 shares in the company, valued at approximately $1,567,519. This trade represents a 31.94% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, General Counsel Matthew W. Cooper sold 3,500 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $208.00, for a total transaction of $728,000.00. Following the completion of the transaction, the general counsel owned 90,194 shares of the company’s stock, valued at $18,760,352. This trade represents a 3.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 20,213 shares of company stock worth $4,147,832. Company insiders own 0.78% of the company’s stock.

Institutional Investors Weigh In On Capital One Financial

Several institutional investors have recently added to or reduced their stakes in COF. Evolution Wealth Management Inc. raised its stake in shares of Capital One Financial by 529.4% in the 4th quarter. Evolution Wealth Management Inc. now owns 107 shares of the financial services provider’s stock valued at $26,000 after purchasing an additional 90 shares during the period. VSM Wealth Advisory LLC acquired a new position in shares of Capital One Financial during the fourth quarter worth about $27,000. Cherry Tree Wealth Management LLC grew its holdings in shares of Capital One Financial by 1,312.5% during the fourth quarter. Cherry Tree Wealth Management LLC now owns 113 shares of the financial services provider’s stock worth $27,000 after buying an additional 105 shares in the last quarter. Ballast Advisors LLC bought a new position in shares of Capital One Financial during the first quarter worth about $27,000. Finally, Strive Asset Management LLC acquired a new stake in Capital One Financial in the 3rd quarter valued at approximately $28,000. 89.84% of the stock is owned by institutional investors.

Key Headlines Impacting Capital One Financial

Here are the key news stories impacting Capital One Financial this week:

• Positive Sentiment: Strong momentum and analyst interest: Zacks identified Capital One as a strong momentum stock, while Goldman Sachs added a major financial company to its August conviction list. These endorsements may support investor sentiment and buying interest. Zacks momentum stock article Goldman Sachs conviction list article
• Positive Sentiment: Payments strategy remains a growth focus: Industry commentary highlighted Capital One’s efforts to expand beyond traditional payments, including capabilities tied to credentials, money movement, tokenization, data and value-added services. Such initiatives could strengthen long-term revenue growth and customer retention. Card networks growth strategy article
• Positive Sentiment: Recent financial performance provides support: Capital One’s latest reported quarter included earnings of $5.81 per share, ahead of the $4.79 consensus estimate, while revenue rose 26.9% year over year to $15.83 billion. The earnings beat and revenue growth reinforce the bullish case.
• Neutral Sentiment: Account closures draw political and regulatory attention: Capital One disclosed that it closed more than 300 Trump Organization-affiliated accounts in 2021 following an anti-money-laundering review. The disclosure could create reputational or political risks, although the stated compliance rationale may limit direct financial impact. CNN account closures article
• Neutral Sentiment: Insider sale has limited significance: Director Ravi Raghu sold 9,726 shares worth approximately $2.04 million under a pre-arranged Rule 10b5-1 trading plan. While insider selling can concern investors, the preset plan reduces its value as a discretionary bearish signal. SEC insider transaction filing

Capital One Financial Company Profile

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.