Zacks Investment Research upgraded shares of Capital One Financial Corporation (NYSE:COF) from a sell rating to a hold rating in a research note released on Thursday morning.

According to Zacks, “Capital One’s shares underperformed the industry in the last six months. The company’s second-quarter 2017 earnings surpassed the Zacks Consensus Estimate, primarily driven by higher revenues and easing margin pressure, which were partially offset by higher expenses. The company should continue to benefit from the strength in its credit card and online banking businesses as well as an improving interest rate scenario and strengthening economy. Given a solid liquidity position, it is expected to continue enhancing shareholder value through efficient capital deployment activities. However, continuously increasing expenses are likely to hurt the company's profitability, going forward. Also, asset quality is expected to remain under pressure due to losses in the auto portfolio and U.S. card business.”

A number of other research firms have also commented on COF. UBS AG upgraded shares of Capital One Financial Corporation from an underperform rating to a market perform rating in a report on Friday, July 21st. CIBC lowered their price target on shares of Capital One Financial Corporation from $84.00 to $80.00 and set an underperform rating for the company in a report on Wednesday, April 26th. Nomura upgraded shares of Capital One Financial Corporation from a neutral rating to a buy rating and upped their price target for the company from $97.00 to $105.00 in a report on Wednesday, March 29th. Evercore ISI restated an underperform rating and issued a $94.00 price objective on shares of Capital One Financial Corporation in a report on Wednesday, April 19th. Finally, Instinet restated a buy rating and issued a $96.00 price objective (down from $101.00) on shares of Capital One Financial Corporation in a report on Wednesday, July 12th. Three equities research analysts have rated the stock with a sell rating, twelve have given a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Capital One Financial Corporation presently has an average rating of Hold and a consensus price target of $92.90.

Shares of Capital One Financial Corporation (COF) opened at 84.97 on Thursday. The firm has a 50-day moving average of $82.32 and a 200-day moving average of $84.79. Capital One Financial Corporation has a 12-month low of $66.00 and a 12-month high of $96.92. The firm has a market capitalization of $41.13 billion, a PE ratio of 12.39 and a beta of 1.19.

Capital One Financial Corporation (NYSE:COF) last posted its quarterly earnings results on Thursday, July 20th. The financial services provider reported $1.96 EPS for the quarter, beating the Zacks’ consensus estimate of $1.90 by $0.06. Capital One Financial Corporation had a net margin of 13.32% and a return on equity of 7.92%. The company had revenue of $6.70 billion during the quarter, compared to analyst estimates of $6.68 billion. During the same period in the prior year, the business posted $1.76 EPS. The firm’s revenue was up 7.2% compared to the same quarter last year. Equities analysts anticipate that Capital One Financial Corporation will post $7.53 earnings per share for the current year.

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Capital One Financial Corporation announced that its Board of Directors has approved a stock buyback plan on Wednesday, June 28th that permits the company to buyback $1.85 billion in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 4.6% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board believes its stock is undervalued.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 17th. Investors of record on Monday, August 7th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 1.88%. The ex-dividend date of this dividend is Thursday, August 3rd. Capital One Financial Corporation’s dividend payout ratio (DPR) is 23.43%.

In related news, CEO Richard D. Fairbank sold 367,419 shares of the stock in a transaction dated Wednesday, July 26th. The shares were sold at an average price of $87.02, for a total transaction of $31,972,801.38. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Michael Slocum sold 6,276 shares of the stock in a transaction dated Friday, May 5th. The shares were sold at an average price of $82.16, for a total transaction of $515,636.16. Following the sale, the insider now directly owns 61,905 shares in the company, valued at $5,086,114.80. The disclosure for this sale can be found here. Corporate insiders own 1.73% of the company’s stock.

Hedge funds have recently made changes to their positions in the stock. K.J. Harrison & Partners Inc purchased a new stake in shares of Capital One Financial Corporation during the second quarter valued at approximately $1,322,000. Busey Trust CO increased its stake in shares of Capital One Financial Corporation by 1.1% in the second quarter. Busey Trust CO now owns 102,092 shares of the financial services provider’s stock valued at $8,435,000 after buying an additional 1,139 shares during the period. State of New Jersey Common Pension Fund D increased its stake in shares of Capital One Financial Corporation by 172.4% in the second quarter. State of New Jersey Common Pension Fund D now owns 790,000 shares of the financial services provider’s stock valued at $65,270,000 after buying an additional 500,000 shares during the period. Bessemer Group Inc. increased its stake in shares of Capital One Financial Corporation by 1.0% in the second quarter. Bessemer Group Inc. now owns 89,480 shares of the financial services provider’s stock valued at $7,393,000 after buying an additional 848 shares during the period. Finally, Coronation Fund Managers Ltd. increased its stake in shares of Capital One Financial Corporation by 121.9% in the second quarter. Coronation Fund Managers Ltd. now owns 111,646 shares of the financial services provider’s stock valued at $9,224,000 after buying an additional 61,326 shares during the period. 87.84% of the stock is currently owned by institutional investors.

Capital One Financial Corporation Company Profile

Capital One Financial Corporation is a diversified financial services holding company. The Company, along with its subsidiaries, offers a range of financial products and services to consumers, small businesses and commercial clients through branches, the Internet and other distribution channels. The Company’s segments include Credit Card, Consumer Banking, Commercial Banking and Other.

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Analyst Recommendations for Capital One Financial Corporation (NYSE:COF)

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