Deutsche Bank Aktiengesellschaft has revised its price target for Capital One Financial Corporation (NYSE: COF) from $263.00 to $256.00. This adjustment, reported on January 10, 2024, comes alongside a “hold” rating for the financial services provider’s stock.
Other notable brokerage firms have also recently updated their assessments of Capital One Financial. Wall Street Zen downgraded the stock from a “buy” rating to a “hold” rating. Conversely, Keefe, Bruyette & Woods raised their price objective from $260.00 to $290.00, assigning an “outperform” rating in a report issued on January 2, 2024. Truist Financial similarly increased its price target from $270.00 to $290.00, maintaining a “buy” rating.
Morgan Stanley elevated their target price from $280.00 to $300.00, issuing an “overweight” rating on January 20, 2024. Barclays also raised their target from $271.00 to $294.00 with an “overweight” rating on January 6, 2024. Currently, one analyst has rated the stock as a Strong Buy, while sixteen have given it a Buy rating and six have assigned a Hold rating. According to MarketBeat, Capital One Financial holds a consensus rating of “Moderate Buy” with an average price target set at $276.70.
Recent Financial Performance
Capital One Financial reported its quarterly earnings on January 22, 2024, revealing earnings per share (EPS) of $3.86, which fell short of the consensus estimate of $4.14 by $0.28. The company’s revenue for the quarter reached $15.62 billion, exceeding the expected $15.49 billion. The firm achieved a net margin of 3.54% and a return on equity of 10.68%, with revenue growth of 53.3% year-over-year. In the same quarter the previous year, Capital One Financial reported EPS of $2.67. Analysts forecast that the company will post an EPS of 15.65 for the current year.
Capital One Financial has also increased its dividend, declaring a quarterly payment of $0.80 per share, which was distributed on December 1, 2023. This dividend marks an increase from the previous $0.60 per share. Shareholders of record on November 17, 2023, received the dividend. The annualized dividend now totals $3.20, reflecting a yield of 1.5%. The company’s payout ratio stands at 108.11%.
Insider Activity and Institutional Investments
In recent insider trading, CEO Richard D. Fairbank sold 103,487 shares on November 4, 2023, at an average price of $220.68, resulting in a total transaction value of approximately $22.84 million. Following this sale, Fairbank retains 4,001,228 shares valued at about $883 million, reflecting a 2.52% decrease in his holdings. Additionally, insider Neal Blinde disposed of 43,200 shares on November 6, 2023, for a total of $9.58 million, reducing his ownership by 37.17%. Over the last quarter, insiders have sold a cumulative 195,409 shares valued at around $43.76 million.
Institutional investment in Capital One Financial remains robust. Vanguard Group Inc. increased its holdings by 74.8% in the second quarter, acquiring an additional 24,129,990 shares for a total of $11.99 billion. State Street Corp also expanded its position by 63.4%, adding 10,776,843 shares valued at approximately $5.91 billion. Norges Bank entered a new position worth around $1.70 billion, while Geode Capital Management LLC raised its stake by 64.1%, acquiring 5,474,328 shares valued at about $2.97 billion. Institutional investors and hedge funds collectively own 89.84% of Capital One Financial’s stock.
Capital One Financial Corporation, headquartered in McLean, Virginia, operates as a diversified bank holding company. Its core offerings include credit card lending, consumer and commercial banking, and auto finance. The company issues various credit products for consumers and small businesses, alongside deposit and digital banking services.
