Capital One Financial (NYSE:COF) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Capital One Financial (NYSE:COF) from a hold rating to a sell rating in a research note released on Tuesday, Zacks.com reports. The firm currently has $72.00 price objective on the financial services provider’s stock.

According to Zacks, “Shares of Capital One have underperformed the industry so far this year. The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters. Its second-quarter 2020 results were hurt by a rise in provisions and weak consumer activity. Near-zero interest rates are likely to hamper revenues to some extent. Moreover, deteriorating credit quality remains a key near-term concern and might hurt the financials. Besides, the company cut its dividend by 75%. However, strength in card business, inorganic growth and a solid liquidity position are expected to aid profitability. Furthermore, as the consumers gradually regain confidence in the economic recovery, there is likely to be a rise in demand for consumer loans, going forward. This, in turn, is expected to support its non-interest income in the upcoming quarters.”

COF has been the subject of a number of other reports. Credit Suisse Group lowered their price target on Capital One Financial from $75.00 to $72.00 and set an outperform rating for the company in a research report on Friday, April 24th. JPMorgan Chase & Co. lowered their price target on Capital One Financial from $114.50 to $62.00 and set an overweight rating for the company in a research report on Thursday, April 23rd. ValuEngine upgraded Capital One Financial from a sell rating to a hold rating in a research note on Friday, May 1st. Oppenheimer increased their target price on Capital One Financial from $63.00 to $69.00 and gave the stock an outperform rating in a research note on Wednesday, July 22nd. Finally, Royal Bank of Canada increased their target price on Capital One Financial from $58.00 to $72.00 in a research note on Thursday, June 11th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and fourteen have issued a buy rating to the stock. Capital One Financial has an average rating of Buy and an average price target of $85.65.

COF stock traded up $1.68 during midday trading on Tuesday, hitting $69.32. The company’s stock had a trading volume of 118,812 shares, compared to its average volume of 4,375,562. Capital One Financial has a 12 month low of $38.00 and a 12 month high of $107.59. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.79. The firm has a market capitalization of $32.09 billion, a price-to-earnings ratio of -184.19 and a beta of 1.73. The company has a 50 day moving average of $63.31 and a two-hundred day moving average of $69.89.

Capital One Financial (NYSE:COF) last posted its earnings results on Tuesday, July 21st. The financial services provider reported ($2.21) EPS for the quarter, missing analysts’ consensus estimates of ($1.25) by ($0.96). The firm had revenue of $6.56 billion for the quarter, compared to the consensus estimate of $6.88 billion. Capital One Financial had a net margin of 0.74% and a return on equity of 1.67%. During the same quarter in the prior year, the company posted $3.24 earnings per share. On average, analysts anticipate that Capital One Financial will post -2.28 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Monday, August 10th will be issued a dividend of $0.10 per share. The ex-dividend date is Friday, August 7th. This represents a $0.40 annualized dividend and a yield of 0.58%. Capital One Financial’s dividend payout ratio (DPR) is 3.31%.

A number of hedge funds and other institutional investors have recently modified their holdings of COF. First Allied Advisory Services Inc. increased its holdings in shares of Capital One Financial by 7.7% in the 1st quarter. First Allied Advisory Services Inc. now owns 5,086 shares of the financial services provider’s stock valued at $256,000 after acquiring an additional 363 shares during the last quarter. State of Alaska Department of Revenue boosted its position in shares of Capital One Financial by 6.7% in the 2nd quarter. State of Alaska Department of Revenue now owns 110,629 shares of the financial services provider’s stock valued at $6,922,000 after purchasing an additional 6,931 shares during the period. M&T Bank Corp boosted its position in shares of Capital One Financial by 6.5% in the 2nd quarter. M&T Bank Corp now owns 93,415 shares of the financial services provider’s stock valued at $5,846,000 after purchasing an additional 5,662 shares during the period. Beese Fulmer Investment Management Inc. acquired a new stake in shares of Capital One Financial in the 2nd quarter valued at about $120,000. Finally, Engineers Gate Manager LP acquired a new stake in shares of Capital One Financial in the 1st quarter valued at about $1,383,000. Institutional investors own 89.08% of the company’s stock.

Capital One Financial Company Profile

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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