News Summary
Capital One Financial Corporation has experienced a significant investment boost from the Teacher Retirement System of Texas, which increased its stake by 226%. Other institutional investors are joining the trend, sparking interest in Capital One’s growth potential. Despite some insider selling, the company’s stock price has shown resilience, and analysts maintain an optimistic outlook with improved earnings forecasts and a new quarterly dividend announcement.
Austin, Texas – The Teacher Retirement System of Texas has significantly increased its investment in Capital One Financial Corporation by a remarkable 226.0% during the first quarter of this fiscal year. This expansion has resulted in the firm owning 73,430 shares of Capital One Financial, having acquired an additional 50,907 shares in the process. As of the most recent quarter, the total value of the Teacher Retirement System’s holdings in Capital One Financial stands at approximately $13,166,000.
In addition to the Teacher Retirement System, various other institutional investors have also made movements with their stakes in Capital One Financial. Notable transactions in the fourth quarter include SBI Securities Co. Ltd., which purchased a new position valued around $32,000. During the first quarter, Beacon Capital Management LLC boosted its holdings by 118.3%, possessing 179 shares worth $32,000. Meanwhile, Murphy & Mullick Capital Management Corp entered the market with a new stake estimated at $41,000, while Rossby Financial LLC acquired shares worth $48,000. Lastly, Bernard Wealth Management Corp established a new position valued at $54,000 during the same period.
As of now, institutional investors control 89.84% of Capital One Financial’s stock. Recent insider trading activity has also been notable, with Michael Zamsky selling 9,560 shares on May 12 at an average price of $199.40, bringing in a total of $1,906,264. This sale resulted in a 32.24% reduction in his ownership. Similarly, Director Ann F. Hackett sold 1,658 shares on the same day at an average price of $198.70, totaling $329,444.60, representing a 2.86% decline in her ownership.
Currently, corporate insiders own only 1.26% of Capital One Financial’s stock. On the trading floor, shares of Capital One Financial were up by $2.13, trading at $220.94 around midday on Friday. A total of 1,856,041 shares were traded, in comparison to the average trading volume of 3,608,043 shares.
Financial Health Overview
Exploring Capital One Financial’s financial health, the company has a quick ratio of 0.97 and a current ratio of 0.98. The debt-to-equity ratio is pegged at 0.65, suggesting a manageable level of debt relative to equity. The stock exhibits a 50-day moving average price of $196.37 and a 200-day moving average price of $187.56. Over the past year, shares traded within a range, hitting a 52-week low of $128.23 and a high of $221.95.
In the first quarter, Capital One Financial reported earnings per share of $4.06, surpassing analysts’ expectations by $0.31. Nevertheless, the company reported revenues of $10 billion, slightly falling short of the anticipated $10.07 billion. The firm’s return on equity stands at 9.63%, with a net margin of 9.65%.
Future Projections and Dividends
Looking ahead, analysts forecast that Capital One Financial will achieve an earnings per share of 15.65 for the current fiscal year. Recently, the company announced a quarterly dividend of $0.60 payable on June 5, which translates to an annual yield of 1.09% with a payout ratio of 20.15%.
The outlook from financial analysts remains optimistic. Multiple firms have adjusted their ratings on Capital One Financial. Barclays maintains an overweight rating with a price target of $253, while Wells Fargo raised its price target from $210 to $225 with a similar rating. Additionally, Baird upgraded to a strong-buy rating, while Truist Financial increased its target price from $215 to $225 with a buy recommendation. As of now, the consensus rating for Capital One Financial is classified as a Moderate Buy, with an average price target set at $215.86.
Deeper Dive: News & Info About This Topic
- MarketBeat: Texas Teacher Retirement System Acquires Capital One Shares
- MarketBeat: Xcel Wealth Management Buys Capital One Shares
- Alternatives Watch: Texas Teachers’ Allocations in Private Equity
- Pensions & Investments: Texas Teachers’ Commitments
- IPE Real Assets: Texas Teachers Invests with PIMCO
Author: STAFF HERE GEORGETOWN
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