Capital One Financial (COF) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Capital One Financial (NYSE:COF) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning.

According to Zacks, “Capital One’s shares have outperformed the industry in the last six months. The company surpassed the Zacks Consensus Estimate for earnings only in two of the trailing four quarters. A solid liquidity position and strength in the credit card and online banking businesses position it well for long term growth. The acquisition of Cabela's credit card portfolio further supports the company's prospects. However, mounting operating expenses are likely to hurt bottom-line growth. Also, deteriorating asset quality remains a major concern for the company in the near term.”

COF has been the subject of a number of other reports. BMO Capital Markets reaffirmed a buy rating and issued a $116.00 target price on shares of Capital One Financial in a research note on Friday, October 6th. Wells Fargo & Co assumed coverage on shares of Capital One Financial in a research note on Tuesday, October 10th. They issued an outperform rating and a $96.00 target price for the company. Piper Jaffray Companies assumed coverage on shares of Capital One Financial in a research note on Thursday, September 21st. They issued an underweight rating and a $81.00 target price for the company. Credit Suisse Group reaffirmed a neutral rating on shares of Capital One Financial in a research note on Wednesday, December 27th. Finally, Wedbush raised shares of Capital One Financial from an underperform rating to a neutral rating and set a $80.00 target price for the company in a research note on Wednesday, October 25th. Two research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and twelve have issued a buy rating to the company. Capital One Financial presently has an average rating of Hold and an average price target of $100.95.

Shares of Capital One Financial (COF) traded up $0.01 during midday trading on Wednesday, hitting $101.43. 2,060,000 shares of the company’s stock were exchanged, compared to its average volume of 2,030,000. Capital One Financial has a one year low of $76.05 and a one year high of $102.16. The company has a market capitalization of $49,170.00, a P/E ratio of 14.23, a PEG ratio of 1.38 and a beta of 1.28. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.06 and a current ratio of 1.07.

Capital One Financial (NYSE:COF) last announced its earnings results on Tuesday, October 24th. The financial services provider reported $2.42 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.15 by $0.27. Capital One Financial had a net margin of 13.34% and a return on equity of 8.25%. The company had revenue of $6.99 billion during the quarter, compared to the consensus estimate of $6.81 billion. During the same period in the previous year, the firm posted $2.03 earnings per share. The company’s revenue was up 8.1% on a year-over-year basis. research analysts expect that Capital One Financial will post 7.96 earnings per share for the current year.

Capital One Financial announced that its board has authorized a share buyback program on Tuesday, December 26th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the financial services provider to purchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

In other Capital One Financial news, insider Yajnik Sanjiv sold 156,278 shares of the company’s stock in a transaction that occurred on Friday, December 22nd. The shares were sold at an average price of $100.00, for a total value of $15,627,800.00. Following the completion of the sale, the insider now owns 199,216 shares of the company’s stock, valued at $19,921,600. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Frank G. LapradeIii sold 83,046 shares of the company’s stock in a transaction that occurred on Thursday, December 14th. The shares were sold at an average price of $95.00, for a total transaction of $7,889,370.00. Following the completion of the sale, the insider now directly owns 97,346 shares of the company’s stock, valued at approximately $9,247,870. The disclosure for this sale can be found here. Over the last three months, insiders have sold 428,921 shares of company stock valued at $41,615,891. 1.73% of the stock is currently owned by insiders.

A number of large investors have recently modified their holdings of COF. Federated Investors Inc. PA increased its stake in Capital One Financial by 36.7% in the second quarter. Federated Investors Inc. PA now owns 20,957 shares of the financial services provider’s stock valued at $1,732,000 after purchasing an additional 5,624 shares in the last quarter. Victory Capital Management Inc. increased its stake in Capital One Financial by 10.8% in the second quarter. Victory Capital Management Inc. now owns 24,411 shares of the financial services provider’s stock valued at $2,017,000 after purchasing an additional 2,385 shares in the last quarter. Bronfman E.L. Rothschild L.P. increased its stake in Capital One Financial by 47.1% in the second quarter. Bronfman E.L. Rothschild L.P. now owns 1,652 shares of the financial services provider’s stock valued at $137,000 after purchasing an additional 529 shares in the last quarter. Oppenheimer Asset Management Inc. increased its stake in Capital One Financial by 24.8% in the second quarter. Oppenheimer Asset Management Inc. now owns 21,558 shares of the financial services provider’s stock valued at $1,781,000 after purchasing an additional 4,290 shares in the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its stake in Capital One Financial by 0.6% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 35,881 shares of the financial services provider’s stock valued at $2,964,000 after purchasing an additional 228 shares in the last quarter. 88.33% of the stock is owned by hedge funds and other institutional investors.

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About Capital One Financial

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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