Capital One Financial Corporation (COF) looking to reclaim success with recent performance

Capital One Financial Corporation (NYSE: COF) stock jumped 2.74% on Tuesday to $102.17 against a previous-day closing price of $99.45. With 4.96 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.39 million shares. The 52-week range on COF shows that it touched its highest point at $128.95 and its lowest point at $83.93 during that stretch. It currently has a 1-year price target of $109.38. With its current market cap of 39.53 billion, COF has annualized dividend of $2.40 while the current yield stands at 2.35%. Beta for the stock currently stands at 1.46.

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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 up-trending over the past week, with a rise of 12.34%, but this was up by 6.05% over a month. Three-month performance dropped to -5.91% while six-month performance rose 3.24%. The stock lost -10.14% in the past year, while it has gained 9.91% so far this year. A look at the trailing 12-month EPS for COF yields 14.50 with Next year EPS estimates of 14.12. For the next quarter, that number is 3.37. This implies an EPS growth rate of -33.50% for this year and 17.76% 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 19.20%.

Float and Shares Shorts:

At present, 382.60 million COF shares are outstanding with a float of 377.50 million shares on hand for trading. On Apr 27, 2023, short shares totaled 7.66 million, which was 2.00% higher than short shares on Mar 30, 2023. 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.

Institutional Ownership:

Through their ownership of 90.54% of COF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.72% of COF, in contrast to 38.68% held by mutual funds. Shares owned by individuals account for 2.51%. As the largest shareholder in COF with 9.23% of the stake, Dodge & Cox holds 35,170,355 shares worth 35,170,355. A second-largest stockholder of COF, The Vanguard Group, Inc., holds 29,659,109 shares, controlling over 7.78% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in COF, holding 17,142,732 shares or 4.50% stake. With a 6.18% stake in COF, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 23,541,913 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.10% of COF stock, is the second-largest Mutual Fund holder. It holds 11,794,214 shares valued at 1.15 billion. Vanguard 500 Index Fund holds 2.34% of the stake in COF, owning 8,901,458 shares worth 866.11 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for COF since 0 analysts follow the stock currently. 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 $162.00 and a low target of $72.00, the average target price over the next 12 months is $108.60. Based on these targets, COF could surge 58.56% to reach the target high and fall by -29.53% to reach the target low. Reaching the average price target will result in a growth of 6.29% 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.

Summary of Insider Activity:

Insiders traded COF stock several times over the past three months with 11 Buys and 11 Sells. In these transactions, 295,784 shares were bought while 136,243 shares were sold. The number of buy transactions has increased to 59 while that of sell transactions has risen to 129 over the past year. The total number of shares bought during that period was 815,451 while 602,622 shares were sold.

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