Capital One Financial (COF) Raised to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Capital One Financial (NYSE:COF) from a hold rating to a buy rating in a research report released on Thursday. They currently have $95.00 price objective on the financial services provider’s stock.
According to Zacks, “Capital One’s shares have outperformed the industry so far this year. Moreover, 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. Moreover, benefits from lower tax rates and restructuring initiatives will support financials. However, mounting operating expenses and deteriorating asset quality remain major concerns for the company.”
A number of other research firms have also commented on COF. BMO Capital Markets lifted their price objective on Capital One Financial from $135.00 to $146.00 and gave the stock an outperform rating in a research note on Wednesday, October 24th. JPMorgan Chase & Co. dropped their price objective on Capital One Financial from $113.00 to $107.00 and set an overweight rating on the stock in a research note on Wednesday, October 24th. Barclays reiterated a buy rating on shares of Capital One Financial in a research note on Monday, October 29th. Wells Fargo & Co lifted their price objective on Capital One Financial from $109.00 to $110.00 and gave the stock an outperform rating in a research note on Monday, October 1st. Finally, Nomura dropped their price objective on Capital One Financial from $109.00 to $98.00 and set a neutral rating on the stock in a research note on Wednesday, October 24th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and fifteen have issued a buy rating to the company. Capital One Financial presently has an average rating of Buy and a consensus price target of $109.14.
Capital One Financial (NYSE:COF) last posted its quarterly earnings data on Tuesday, October 23rd. The financial services provider reported $3.12 EPS for the quarter, topping analysts’ consensus estimates of $2.89 by $0.23. The business had revenue of $6.96 billion for the quarter, compared to analyst estimates of $6.88 billion. Capital One Financial had a return on equity of 11.01% and a net margin of 11.84%. The firm’s revenue for the quarter was down .3% on a year-over-year basis. During the same period in the previous year, the company posted $2.42 earnings per share. Research analysts forecast that Capital One Financial will post 11.38 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, November 23rd. Investors of record on Monday, November 12th were paid a dividend of $0.40 per share. The ex-dividend date was Thursday, November 8th. This represents a $1.60 annualized dividend and a yield of 1.92%. Capital One Financial’s dividend payout ratio is 20.54%.
Institutional investors and hedge funds have recently modified their holdings of the stock. Farmers National Bank bought a new position in Capital One Financial during the second quarter valued at about $102,000. Integrated Investment Consultants LLC bought a new stake in shares of Capital One Financial in the 2nd quarter valued at approximately $108,000. Sun Life Financial INC grew its stake in shares of Capital One Financial by 518.3% in the 2nd 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 during the period. Stratos Wealth Partners LTD. bought a new stake in shares of Capital One Financial in the 3rd quarter valued at approximately $130,000. Finally, QCI Asset Management Inc. NY grew its stake in shares of Capital One Financial by 698.3% in the 3rd quarter. QCI Asset Management Inc. NY now owns 1,405 shares of the financial services provider’s stock valued at $133,000 after purchasing an additional 1,229 shares during the period. Hedge funds and other institutional investors own 88.35% of the company’s stock.
About Capital One Financial
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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