Capital One Financial Corporation (NYSE: COF) stock fell -1.99% on Friday to $106.89 against a previous-day closing price of $109.06. With 3.32 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.72 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $107.97 whereas the lowest price it dropped to was $106.11. The 52-week range on COF shows that it touched its highest point at $177.95 and its lowest point at $98.54 during that stretch. It currently has a 1-year price target of $142.38. With its current market cap of 40.69 billion, COF has annualized dividend of $2.40 while the current yield stands at 2.25%. Beta for the stock currently stands at 1.45.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of COF was down-trending over the past week, with a drop of -0.76%, but this was up by 0.80% over a month. Three-month performance dropped to -20.41% while six-month performance fell -28.56%. The stock lost -33.44% in the past year, while it has lost -26.33% so far this year. A look at the trailing 12-month EPS for COF yields 22.79 with Next year EPS estimates of 18.29. For the next quarter, that number is 5.11. This implies an EPS growth rate of 420.00% for this year and -8.09% for next year. EPS is expected to decline by -6.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 31.20%.
Float and Shares Shorts:
At present, 410.40 million COF shares are outstanding with a float of 379.59 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.83 million, which was 1.78% higher than short shares on Jun 14, 2022. In addition to Mr. Richard D. Fairbank as the firm’s Founder, Chairman, CEO & Pres, Mr. Andrew M. Young serves as its Chief Financial Officer.
Through their ownership of 93.79% of COF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.17% of COF, in contrast to 39.50% held by mutual funds. Shares owned by individuals account for 2.35%. As the largest shareholder in COF with 8.39% of the stake, Dodge & Cox holds 32,964,956 shares worth 32,964,956. A second-largest stockholder of COF, The Vanguard Group, Inc., holds 31,140,839 shares, controlling over 7.92% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in COF, holding 21,081,026 shares or 5.36% stake. With a 5.92% stake in COF, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 23,248,913 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of COF stock, is the second-largest Mutual Fund holder. It holds 11,588,829 shares valued at 1.21 billion. Vanguard 500 Index Fund holds 2.21% of the stake in COF, owning 8,698,568 shares worth 906.3 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for COF since 24 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With COF analysts setting a high price target of $173.00 and a low target of $86.00, the average target price over the next 12 months is $141.61. Based on these targets, COF could surge 61.85% to reach the target high and fall by -19.54% to reach the target low. Reaching the average price target will result in a growth of 32.48% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. COF will report FY 2022 earnings on 01/24/2023. Analysts have provided yearly estimates in a range of $20.59 being high and $18.65 being low. For COF, this leads to a yearly average estimate of $19.80. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Capital One Financial Corporation surprised analysts by -$0.13 when it reported $4.96 EPS against a consensus estimate of $5.09. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is $6.06 and the low estimate is $4.64. The average estimate for the next quarter is thus $5.12.
Summary of Insider Activity:
Insiders traded COF stock several times over the past three months with 12 Buys and 4 Sells. In these transactions, 19,344 shares were bought while 19,876 shares were sold. The number of buy transactions has increased to 47 while that of sell transactions has risen to 76 over the past year. The total number of shares bought during that period was 513,105 while 271,394 shares were sold.