Jefferies Group Weighs in on Capital One Financial Corp.’s Q4 2017 Earnings (COF)

Capital One Financial Corp. (NYSE:COF) – Equities research analysts at Jefferies Group upped their Q4 2017 earnings estimates for shares of Capital One Financial in a report issued on Wednesday, according to Zacks Investment Research. Jefferies Group analyst J. Hecht now forecasts that the financial services provider will post earnings of $1.83 per share for the quarter, up from their previous estimate of $1.65. Jefferies Group also issued estimates for Capital One Financial’s Q2 2018 earnings at $2.40 EPS, Q4 2018 earnings at $2.08 EPS and FY2018 earnings at $9.50 EPS.

Capital One Financial (NYSE:COF) last announced its quarterly earnings data on Tuesday, January 23rd. The financial services provider reported $1.62 EPS for the quarter, missing the Zacks’ consensus estimate of $1.85 by ($0.23). Capital One Financial had a net margin of 6.89% and a return on equity of 8.36%. The company had revenue of $7 billion for the quarter, compared to analysts’ expectations of $7.12 billion. During the same period in the previous year, the firm posted $1.45 earnings per share. The business’s revenue for the quarter was up 6.6% on a year-over-year basis.

Other research analysts also recently issued reports about the stock. BMO Capital Markets boosted their price objective on shares of Capital One Financial from $116.00 to $118.00 and gave the company an “outperform” rating in a research report on Wednesday, October 25th. Credit Suisse Group reissued a “hold” rating and issued a $92.00 target price on shares of Capital One Financial in a research report on Tuesday, December 19th. Royal Bank of Canada reissued a “buy” rating and issued a $110.00 target price on shares of Capital One Financial in a research report on Wednesday, January 24th. Wells Fargo & Co initiated coverage on shares of Capital One Financial in a research report on Tuesday, October 10th. They issued an “outperform” rating and a $96.00 target price for the company. Finally, Piper Jaffray Companies reissued a “sell” rating and issued a $81.00 target price on shares of Capital One Financial in a research report on Friday, October 27th. Two investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and twelve have given a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus target price of $106.14.

Shares of Capital One Financial (COF) traded down $4.57 on Friday, reaching $97.00. 3,030,000 shares of the company were exchanged, compared to its average volume of 2,170,000. Capital One Financial has a 52-week low of $76.05 and a 52-week high of $106.50. The stock has a market capitalization of $47,020.00, a P/E ratio of 25.73, a PEG ratio of 0.93 and a beta of 1.33. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.08 and a quick ratio of 1.07.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 23rd. Stockholders of record on Monday, February 12th will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.65%. The ex-dividend date of this dividend is Friday, February 9th. Capital One Financial’s payout ratio is 42.44%.

Capital One Financial declared that its board has approved a stock buyback plan on Tuesday, December 26th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

In other news, CEO Richard D. Fairbank sold 485,202 shares of the business’s stock in a transaction on Thursday, January 25th. The shares were sold at an average price of $105.09, for a total value of $50,989,878.18. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Bradford H. Warner sold 3,000 shares of the business’s stock in a transaction on Tuesday, January 2nd. The stock was sold at an average price of $99.46, for a total transaction of $298,380.00. Following the completion of the sale, the director now owns 53,085 shares of the company’s stock, valued at $5,279,834.10. The disclosure for this sale can be found here. Insiders sold 954,948 shares of company stock valued at $97,433,019 over the last 90 days. 1.73% of the stock is owned by corporate insiders.

A number of large investors have recently added to or reduced their stakes in COF. Davis Selected Advisers raised its stake in Capital One Financial by 43.7% during the 3rd quarter. Davis Selected Advisers now owns 11,581,237 shares of the financial services provider’s stock valued at $980,149,000 after purchasing an additional 3,519,332 shares during the last quarter. APG Asset Management N.V. raised its stake in Capital One Financial by 1,256.0% during the 4th quarter. APG Asset Management N.V. now owns 1,851,401 shares of the financial services provider’s stock valued at $153,533,000 after purchasing an additional 1,714,867 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. raised its stake in Capital One Financial by 49,032.3% during the 4th quarter. Los Angeles Capital Management & Equity Research Inc. now owns 1,479,866 shares of the financial services provider’s stock valued at $147,365,000 after purchasing an additional 1,476,854 shares during the last quarter. Point72 Asset Management L.P. raised its stake in Capital One Financial by 229.4% during the 3rd quarter. Point72 Asset Management L.P. now owns 1,647,291 shares of the financial services provider’s stock valued at $139,460,000 after purchasing an additional 1,147,191 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its stake in Capital One Financial by 107.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,989,104 shares of the financial services provider’s stock valued at $164,340,000 after purchasing an additional 1,031,829 shares during the last quarter. Hedge funds and other institutional investors own 88.87% of the company’s stock.

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Capital One Financial 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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Earnings History and Estimates for Capital One Financial (NYSE:COF)

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