Vaughan Nelson Investment Management L.P. Raises Holdings in Capital One Financial Corporation $COF

Vaughan Nelson Investment Management L.P. grew its holdings in Capital One Financial Corporation (NYSE:COF) by 14.7% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 851,967 shares of the financial services provider’s stock after purchasing an additional 109,496 shares during the period. Capital One Financial comprises about 1.6% of Vaughan Nelson Investment Management L.P.’s investment portfolio, making the stock its 14th biggest holding. Vaughan Nelson Investment Management L.P. owned 0.13% of Capital One Financial worth $181,111,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Kingstone Capital Partners Texas LLC raised its position in Capital One Financial by 588,668.3% in the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 117,447,497 shares of the financial services provider’s stock worth $24,988,129,000 after buying an additional 117,427,549 shares during the last quarter. Vanguard Group Inc. raised its holdings in shares of Capital One Financial by 74.8% during the second quarter. Vanguard Group Inc. now owns 56,380,913 shares of the financial services provider’s stock valued at $11,995,603,000 after purchasing an additional 24,129,990 shares during the last quarter. State Street Corp raised its holdings in shares of Capital One Financial by 63.4% during the second quarter. State Street Corp now owns 27,780,128 shares of the financial services provider’s stock valued at $5,910,500,000 after purchasing an additional 10,776,843 shares during the last quarter. Geode Capital Management LLC lifted its position in Capital One Financial by 64.1% during the second quarter. Geode Capital Management LLC now owns 14,008,841 shares of the financial services provider’s stock valued at $2,970,628,000 after purchasing an additional 5,474,328 shares during the period. Finally, Norges Bank purchased a new stake in Capital One Financial in the second quarter worth approximately $1,701,511,000. 89.84% of the stock is owned by institutional investors.

Key Headlines Impacting Capital One Financial

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

• Positive Sentiment: Wells Fargo reiterated a Buy on COF, supporting demand by reinforcing analyst confidence in the bank’s outlook and franchise strength. Wells Fargo Reaffirms Their Buy Rating on Capital One Financial (COF)
• Positive Sentiment: Analysis highlights Capital One’s recent strong growth and market-share gains, which could strengthen its negotiating position or strategic rationale in any potential Discover-related or other partnership transactions — a positive catalyst for valuation expectations. How Strong Recent Growth and Market Share Gains Could Shape Capital One Financial’s (COF) Discover Deal Narrative
• Neutral Sentiment: Coverage of retailers adding branded cafes notes Capital One as an example of banks/brands using in-person experiences to drive customer engagement. This is a brand/experience tailwind but likely a modest, longer-term influence on revenue. Uniqlo and Coach are opening cafes — joining longtime coffee players Ralph Lauren and Capital One. Here’s why it’s become a retail trend
• Negative Sentiment: Insider sale — Celia Karam sold 2,064 shares at ~$244.35 (reducing her stake ~3.25%), a disclosure that can be perceived negatively by some investors. Celia Karam Form 4
• Negative Sentiment: Insider sale — Lia Dean sold 3,163 shares at ~$244.35 (a ~4.53% reduction), another disposal that may weigh on sentiment. Lia Dean Form 4
• Negative Sentiment: Large insider sale — Ravi Raghu sold 13,450 shares at ~$250.00, cutting his holding by ~30.7%; this larger reduction is the most notable insider trade and could raise questions about near-term insider conviction. Ravi Raghu Form 4

Insider Activity

In other Capital One Financial news, insider Celia Karam sold 2,064 shares of the stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $244.35, for a total transaction of $504,338.40. Following the completion of the sale, the insider directly owned 61,373 shares of the company’s stock, valued at $14,996,492.55. This trade represents a 3.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, General Counsel Matthew W. Cooper sold 2,000 shares of Capital One Financial stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $221.54, for a total transaction of $443,080.00. Following the sale, the general counsel owned 94,486 shares in the company, valued at approximately $20,932,428.44. The trade was a 2.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 296,895 shares of company stock valued at $66,611,541 in the last three months. 1.26% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of brokerages have weighed in on COF. Barclays boosted their target price on shares of Capital One Financial from $271.00 to $294.00 and gave the company an “overweight” rating in a research note on Tuesday. Keefe, Bruyette & Woods raised their target price on Capital One Financial from $260.00 to $290.00 and gave the stock an “outperform” rating in a research report on Friday, January 2nd. UBS Group cut their price target on Capital One Financial from $270.00 to $266.00 and set a “buy” rating for the company in a research note on Tuesday, October 7th. Citigroup increased their price objective on shares of Capital One Financial from $290.00 to $310.00 and gave the stock a “buy” rating in a research note on Wednesday, December 31st. Finally, Zacks Research lowered shares of Capital One Financial from a “strong-buy” rating to a “hold” rating in a research report on Monday, November 24th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $274.80.

Capital One Financial Price Performance

Shares of NYSE:COF opened at $257.72 on Wednesday. The company has a market capitalization of $163.84 billion, a P/E ratio of 108.74, a P/E/G ratio of 0.57 and a beta of 1.13. Capital One Financial Corporation has a 1-year low of $143.22 and a 1-year high of $259.64. The firm’s 50 day simple moving average is $228.44 and its two-hundred day simple moving average is $221.26. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.03 and a quick ratio of 1.03.

Capital One Financial (NYSE:COF) last announced its quarterly earnings data on Monday, November 3rd. The financial services provider reported $5.95 EPS for the quarter. The firm had revenue of $15.46 billion for the quarter. Capital One Financial had a net margin of 2.24% and a return on equity of 10.94%. Research analysts expect that Capital One Financial Corporation will post 15.65 EPS for the current fiscal year.

Capital One Financial Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 1st. Stockholders of record on Monday, November 17th were paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.2%. This is a positive change from Capital One Financial’s previous quarterly dividend of $0.60. The ex-dividend date of this dividend was Monday, November 17th. Capital One Financial’s dividend payout ratio is currently 135.02%.

About Capital One Financial

Capital One Financial Corporation (NYSE: COF) is a diversified bank holding company headquartered in McLean, Virginia. The company’s core businesses include credit card lending, consumer and commercial banking, and auto finance. Capital One issues a wide range of credit card products for consumers and small businesses, and it operates deposit and digital banking services aimed at retail customers and small to midsize enterprises.

Products and services include credit and charge cards, checking and savings accounts (including the online-focused Capital One 360 platform), auto loans, and commercial lending solutions.