Foster & Motley Inc. has taken a significant step by acquiring a new position in Capital One Financial Corporation (NYSE: COF) during the second quarter of 2023. The investment firm purchased 11,002 shares of the financial services provider’s stock, valued at approximately $2,341,000. This acquisition is part of a broader trend, as other institutional investors have also adjusted their stakes in Capital One, reflecting growing interest in the company.
Several hedge funds have made notable moves regarding Capital One’s shares. For instance, WPG Advisers LLC acquired a new stake in the first quarter valued at around $25,000. Meanwhile, Moisand Fitzgerald Tamayo LLC increased its stake by an impressive 103.3% during the same quarter, bringing its total holdings to 122 shares, valued at $26,000. Additionally, Olistico Wealth LLC raised its stake by a staggering 439.1%, now holding 124 shares worth $26,000 after an acquisition of 101 shares.
The Saudi Central Bank and RMG Wealth Management LLC also entered the fray with new stakes, each valued at approximately $27,000. Currently, institutional investors own 89.84% of Capital One’s stock, indicating robust backing from significant financial players.
Analyst Ratings and Stock Performance
Analysts have shown a favorable outlook on Capital One Financial, with several recent upgrades. Rothschild & Co Redburn initiated coverage on August 1, 2023, giving the stock a “buy” rating and a price target of $290.00. Other analysts, including those from Morgan Stanley and Royal Bank of Canada, have adjusted their price targets upwards, with Morgan Stanley increasing its target to $267.00 and Royal Bank of Canada setting it at $255.00.
As of the latest trading session, Capital One’s stock opened at $211.25, reflecting a 4.0% increase. The company boasts a market capitalization of $135.10 billion, with a price-to-earnings ratio of 108.33 and a price-to-earnings-growth ratio of 0.76. Over the past year, the stock has fluctuated between a low of $143.22 and a high of $232.45.
The company recently reported its quarterly earnings data, revealing earnings per share of $5.48, significantly surpassing analysts’ expectations of $1.93. Revenue for the quarter reached $12.49 billion, marking a 31.4% increase compared to the previous year.
Dividend Announcement and Insider Activity
In addition to its financial performance, Capital One Financial has declared a quarterly dividend of $0.60, paid on September 2, 2023, to investors on record as of August 15. This represents an annualized dividend of $2.40 and a dividend yield of 1.1%. Notably, the company’s dividend payout ratio stands at 123.08%.
Insider activity has also been noteworthy, with Timothy P. Golden, the Chief Accounting Officer, selling 3,462 shares on August 12 for about $727,989. Following this transaction, his remaining shares are valued at approximately $1.89 million, indicating a 27.81% decrease in his ownership. In a similar move, Michael Zamsky sold 5,515 shares for around $1.15 million, reducing his holding by 16.77%.
Capital One Financial Corporation operates as a holding company for various financial products and services across the United States, Canada, and the United Kingdom. The company is structured into three main segments: Credit Card, Consumer Banking, and Commercial Banking. With significant institutional backing and a favorable analyst outlook, Capital One appears well-positioned for future growth.
