Capital One Financial (NYSE:COF) Issues Quarterly Earnings Results

Capital One Financial (NYSE:COF) released its earnings results on Tuesday. The financial services provider reported $6.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.50 by $1.19, FiscalAI reports. Capital One Financial had a net margin of 13.37% and a return on equity of 11.28%. The company had revenue of $16.31 billion for the quarter, compared to the consensus estimate of $16.25 billion.

Capital One Financial Stock Up 0.9%

COF stock traded up $1.82 during trading hours on Tuesday, reaching $201.65. 4,376,988 shares of the stock were exchanged, compared to its average volume of 4,632,060. The company has a market cap of $123.71 billion, a price-to-earnings ratio of 12.48, a PEG ratio of 0.97 and a beta of 1.04. The firm’s 50-day moving average is $207.70 and its 200-day moving average is $200.51. Capital One Financial has a 12 month low of $174.24 and a 12 month high of $259.64. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.02 and a quick ratio of 1.02.

Capital One Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 17th were given a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Monday, August 17th. Capital One Financial’s payout ratio is currently 19.80%.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. BTIG Research lifted their price target on shares of Capital One Financial from $224.00 to $259.00 and gave the stock a “buy” rating in a research report on Tuesday, June 30th. Wolfe Research boosted their price target on shares of Capital One Financial from $255.00 to $275.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 25th. Piper Sandler increased their price objective on shares of Capital One Financial from $254.00 to $260.00 and gave the company an “overweight” rating in a report on Monday, September 28th. JPMorgan Chase & Co. reduced their price objective on shares of Capital One Financial from $246.00 to $227.00 and set an “overweight” rating on the stock in a research note on Monday, October 12th. Finally, TD Cowen reduced their price objective on shares of Capital One Financial from $253.00 to $242.00 and set a “buy” rating on the stock in a research note on Tuesday, October 6th. Twenty equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $255.04.

Insider Buying and Selling at Capital One Financial

In other news, insider Ravi Raghu sold 9,726 shares of the company’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $209.78, for a total transaction of $2,040,320.28. Following the sale, the insider owned 26,328 shares in the company, valued at $5,523,087.84. This represents a 26.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Timothy P. Golden sold 3,487 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $211.00, for a total value of $735,757.00. Following the completion of the sale, the chief accounting officer directly owned 7,429 shares of the company’s stock, valued at approximately $1,567,519. The trade was a 31.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 37,664 shares of company stock valued at $7,914,162 in the last three months. 0.78% of the stock is currently owned by insiders.

More Capital One Financial News

Here are the key news stories impacting Capital One Financial this week:

• Positive Sentiment: Earnings beat expectations: Capital One reported quarterly EPS of $6.69, well above the $5.50 analyst consensus, while revenue reached $16.31 billion versus expectations of $16.25 billion. Net margin was 13.37% and return on equity was 11.28%. Capital One Financial quarterly earnings press release
• Positive Sentiment: Improving operating trends: Third-quarter net income rose to $3.5 billion from $3.0 billion in the prior quarter. Total non-interest expense declined 2% to $8.9 billion, net interest margin expanded 40 basis points to 8.41%, and loans held for investment increased to $462.5 billion. A $225 million loan-reserve release also helped results. Capital One Q3 net income report
• Neutral Sentiment: Credit and funding considerations: Provision for credit losses fell to $2.9 billion, but net charge-offs remained substantial at $3.1 billion. Deposits declined $3.6 billion to $480.7 billion, partially offsetting the stronger loan growth. Capital One’s common equity Tier 1 ratio remained solid at 13.8%.
• Negative Sentiment: Insider selling: Insiders Lia Dean and Celia Karam sold shares worth approximately $370,000 and $377,000, respectively. Both transactions were made under pre-arranged Rule 10b5-1 plans, reducing the signaling impact, but the sales may still weigh modestly on sentiment. Capital One insider trading report

About Capital One Financial

Capital One Financial Corporation is a diversified financial services company headquartered in McLean, Virginia. Founded in 1994, the company operates as a bank holding company through Capital One, N.A., providing financial products and services to consumers, small businesses and commercial customers.

Capital One is best known for its credit card business, which offers a range of consumer and business cards. Its other activities include consumer banking products such as checking and savings accounts, auto loans and retail banking services, as well as commercial banking services for businesses and institutions.

The company primarily serves customers in the United States through digital channels, branches and other distribution networks.