Foster & Motley Inc. has taken a significant step in the financial sector by acquiring a new stake in Capital One Financial Corporation (NYSE: COF) during the second quarter of 2023. According to its latest 13F filing with the Securities and Exchange Commission (SEC), the investment firm purchased 11,002 shares valued at approximately $2.34 million. This acquisition highlights a growing interest in Capital One, which has seen other institutional investors adjusting their positions in the company.
Several hedge funds have recently made changes to their stakes in Capital One. For instance, WPG Advisers LLC acquired a new position in the first quarter, valued at around $25,000. Moisand Fitzgerald Tamayo LLC notably increased its stake by 103.3% during the second quarter, now holding 122 shares worth approximately $26,000. Similarly, Olistico Wealth LLC raised its stake by an impressive 439.1%, now owning 124 shares after acquiring an additional 101 shares during this period. The Saudi Central Bank and RMG Wealth Management LLC also entered the fold with new stakes valued at about $27,000 each. Currently, institutional investors hold 89.84% of Capital One’s stock.
Analyst Ratings Reflect Positive Sentiment
Capital One has been the subject of numerous research reports, indicating a generally positive outlook among analysts. Rothschild & Co Redburn initiated coverage on August 1, 2023, with a “buy” rating and a price target of $290.00. Additionally, Wall Street Zen upgraded the stock from a “hold” to a “buy” rating on September 26, 2023. Morgan Stanley raised its price target for Capital One from $261.00 to $267.00, while Royal Bank of Canada increased its target from $240.00 to $255.00.
The consensus rating for Capital One Financial is currently classified as a “Moderate Buy,” with an average price target of $252.78. Notably, three analysts have assigned a “Strong Buy” rating, while fourteen have given a “Buy” rating and six have maintained a “Hold” rating.
Capital One Financial’s Recent Performance
On the stock market, Capital One Financial saw a rise of 4.0% recently, with shares opening at $211.25. The company reports a current ratio of 1.02, a quick ratio of 1.02, and a debt-to-equity ratio of 0.47. Its market capitalization stands at $135.10 billion, and the stock has experienced a price-to-earnings ratio of 108.33. Over the past year, shares have fluctuated between a low of $143.22 and a high of $232.45.
Capital One recently disclosed its quarterly earnings, posting $5.48 earnings per share, significantly exceeding the consensus estimate of $1.93 by $3.55. The company reported revenues of $12.49 billion for the quarter, which represents a 31.4% increase year-over-year, although it fell slightly short of the consensus estimate of $12.72 billion. Analysts predict that Capital One Financial will post an earnings per share (EPS) of $15.65 for the current fiscal year.
In dividend news, Capital One announced a quarterly dividend of $0.60 per share, which was paid on September 2, 2023. Shareholders of record on August 15 received this dividend, representing an annualized total of $2.40 and a yield of 1.1%. The company’s dividend payout ratio stands at 123.08%.
Recent insider activity has also caught attention, with Chief Accounting Officer Timothy P. Golden selling 3,462 shares at an average price of $210.28, totaling approximately $727,989.36. Following this transaction, he retains ownership of 8,987 shares, valued at about $1.89 million. Another insider, Michael Zamsky, sold 5,515 shares at an average price of $209.59, amounting to around $1.16 million. These sales represent reductions of 27.81% and 16.77% in their respective holdings.
Overall, Capital One Financial Corporation continues to demonstrate resilience and appeal in the financial services sector, attracting substantial investments and maintaining positive analyst sentiment as it navigates the market landscape.
