Capital One Financial Corp. (NYSE:COF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Capital One's financials continue to be weighed by deteriorating credit quality owing to changing loan environment and a stressed energy loan portfolio. Also, mounting expense level is expected to hurt bottom line growth. Further, management expects persistent runoffs in home loans, sluggish auto loan growth and compressed margins to hurt revenue growth in 2016. However, synergies from geographic diversification and resilience of Capital One's operations will aid profitability growth. Additionally, the company's revenue will continue to benefit from loan growth and improving economy.”

A number of other brokerages have also recently issued reports on COF. Credit Suisse Group AG reaffirmed a “hold” rating on shares of Capital One Financial Corp. in a research report on Friday, September 16th. Oppenheimer Holdings Inc. reaffirmed an “underperform” rating and issued a $59.00 target price on shares of Capital One Financial Corp. in a research report on Thursday, August 25th. Morgan Stanley reaffirmed a “buy” rating and issued a $83.00 target price on shares of Capital One Financial Corp. in a research report on Wednesday, August 17th. DA Davidson reaffirmed a “buy” rating on shares of Capital One Financial Corp. in a research report on Tuesday, August 16th. Finally, Jefferies Group reaffirmed a “hold” rating on shares of Capital One Financial Corp. in a research report on Friday, August 12th. Five research analysts have rated the stock with a sell rating, ten have given a hold rating and thirteen have assigned a buy rating to the stock. Capital One Financial Corp. has an average rating of “Hold” and an average price target of $79.28.

Shares of Capital One Financial Corp. (NYSE:COF) opened at 70.56 on Monday. The stock has a market capitalization of $36.11 billion, a PE ratio of 9.96 and a beta of 1.33. The company’s 50-day moving average is $69.43 and its 200-day moving average is $69.08. Capital One Financial Corp. has a 12 month low of $58.03 and a 12 month high of $81.62.

Capital One Financial Corp. (NYSE:COF) last issued its earnings results on Thursday, July 21st. The financial services provider reported $1.69 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.86 by $0.17. The company earned $6.30 billion during the quarter, compared to analyst estimates of $6.28 billion. Capital One Financial Corp. had a return on equity of 8.56% and a net margin of 15.38%. Equities research analysts expect that Capital One Financial Corp. will post $7.18 earnings per share for the current fiscal year.

Several large investors have recently added to or reduced their stakes in COF. Hermes Investment Management Ltd. raised its stake in Capital One Financial Corp. by 7.5% in the second quarter. Hermes Investment Management Ltd. now owns 542,232 shares of the financial services provider’s stock valued at $34,437,000 after buying an additional 38,000 shares in the last quarter. IFP Advisors Inc raised its stake in Capital One Financial Corp. by 28.4% in the first quarter. IFP Advisors Inc now owns 3,154 shares of the financial services provider’s stock valued at $219,000 after buying an additional 698 shares in the last quarter. Zweig DiMenna Associates LLC bought a new stake in Capital One Financial Corp. during the second quarter valued at $229,000. Kelly Lawrence W & Associates Inc. CA raised its stake in Capital One Financial Corp. by 0.3% in the first quarter. Kelly Lawrence W & Associates Inc. CA now owns 150,320 shares of the financial services provider’s stock valued at $10,419,000 after buying an additional 450 shares in the last quarter. Finally, Fisher Asset Management LLC bought a new stake in Capital One Financial Corp. during the second quarter valued at $12,950,000. Institutional investors own 87.75% of the company’s stock.

About Capital One Financial Corp.

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