Zacks Investment Research Lowers Capital One Financial (COF) to Hold

Capital One Financial (NYSE:COF) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Shares of Capital One have marginally outperformed the industry over the last six months. Moreover, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Estimates have been going up lately ahead of the company's fourth-quarter 2018 earnings release. A strong liquidity position, strength in its credit card and online banking businesses, higher interest rates and solid loan balance will aid growth further. Also, benefits from lower tax rates and restructuring initiatives will support financials. However, mounting operating expenses are likely to hurt bottom-line growth in the near term. Moreover, deteriorating credit quality makes us apprehensive.”

Several other equities research analysts have also issued reports on the company. Sandler O’Neill lifted their price objective on Capital One Financial from $113.00 to $115.00 and gave the company a “buy” rating in a research note on Wednesday, October 24th. BMO Capital Markets lifted their price objective on Capital One Financial from $135.00 to $146.00 and gave the company an “outperform” rating in a research note on Wednesday, October 24th. ValuEngine lowered Capital One Financial from a “hold” rating to a “sell” rating in a research note on Monday, October 22nd. Morgan Stanley dropped their price objective on Capital One Financial from $107.00 to $100.00 and set an “equal weight” rating for the company in a research note on Tuesday. Finally, Oppenheimer set a $116.00 price objective on Capital One Financial and gave the company a “buy” rating in a research note on Tuesday, September 18th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and thirteen have issued a buy rating to the stock. The company currently has an average rating of “Buy” and an average price target of $107.00.

NYSE:COF opened at $79.95 on Wednesday. The firm has a market cap of $38.16 billion, a P/E ratio of 10.26, a price-to-earnings-growth ratio of 0.65 and a beta of 1.31. Capital One Financial has a 52-week low of $69.90 and a 52-week high of $106.50. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.99 and a quick ratio of 0.99.

Capital One Financial (NYSE:COF) last posted its quarterly earnings data on Tuesday, October 23rd. The financial services provider reported $3.12 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.89 by $0.23. The company had revenue of $6.96 billion during 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 quarterly revenue was down .3% on a year-over-year basis. During the same quarter last year, the company earned $2.42 earnings per share. Equities research analysts anticipate that Capital One Financial will post 11.42 EPS for the current year.

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc lifted its stake in Capital One Financial by 1.2% during the third quarter. Vanguard Group Inc now owns 34,504,061 shares of the financial services provider’s stock worth $3,275,469,000 after purchasing an additional 406,610 shares during the last quarter. Norinchukin Bank The lifted its stake in shares of Capital One Financial by 11.7% in the 3rd quarter. Norinchukin Bank The now owns 33,846 shares of the financial services provider’s stock valued at $3,213,000 after acquiring an additional 3,548 shares during the last quarter. Quantbot Technologies LP bought a new stake in shares of Capital One Financial in the 3rd quarter valued at about $5,587,000. Veritable L.P. lifted its stake in shares of Capital One Financial by 5.1% in the 3rd quarter. Veritable L.P. now owns 14,569 shares of the financial services provider’s stock valued at $1,383,000 after acquiring an additional 704 shares during the last quarter. Finally, Montag A & Associates Inc. lifted its stake in shares of Capital One Financial by 60.2% in the 3rd quarter. Montag A & Associates Inc. now owns 25,489 shares of the financial services provider’s stock valued at $2,420,000 after acquiring an additional 9,580 shares during the last quarter. 87.99% of the stock is owned by hedge funds and other institutional investors.

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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