Is Capital One Financial Corporation (COF) Stock Set to Sail or Sink?

Capital One Financial Corporation (COF) will probably climb 33.25 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $146price as 12-month high target. This represents a whopping 86.7 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $100, which represents a return potential of 27.88 percent when compared to the closing price of the stock of $78.2 on Wednesday, January 23. The lowest price target for the stock is $79 — slightly more than 1.02 percent from COF’s current share price.

The stock is currently hovering around the first support level of $77.08. Below this, the next support is placed in the zone of $75.96. Till the time, the COF stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 43.42 on daily chart, which may remain a cause for concern. If the price breaks below $75.96 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $79.95 mark may result into a pull-back move towards $81.7 level.

On 23rd of January, Capital One Financial Corporation (NYSE:COF) shares ended lower after a volatile session. The shares dropped -5.2 points or -6.24 percent at $78.2 with a heavy trade volume of 8.586 million shares. After opening the session at $79.77, the shares went as high as $80.58 and as low as $77.71, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $37.4 billion and now has 477.8 million shares outstanding. Capital One Financial Corporation (COF) stock has gained 4.98 percent of market value in 21 trading days.

COF stock has a trailing 3-year beta of 1.32, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $11.13 a share in the trailing twelve months. The stock’s value has surged 3.45 percent year to date (YTD) against a decline of -25.87 percent in 12 month’s time. The company’s shares still trade -26.57 percent away from its 1-year high of $106.50 and 11.87 percent up from 52-week low of $69.90. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Capital One Financial Corporation (COF) are trading at a P/E ratio of 7.93 times earnings reported for the past 12 months. The industry COF operates in has an average P/E of 16.84. Its P/E ratio went as low as 10.32X and as high as 13.37 over the 5-year span. Further, it is sporting a 1.4 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.02. 0 percent is the gross profit margin for Capital One Financial Corporation and operating margin sits at 62.6 percent. Along with this, the net profit margin is 13.1 percent.

Let’s take a look at some insider activity at Capital One Financial Corporation (NYSE:COF) and see the pattern. The earliest insider trade took place on 08/02/2018. Golden Timothy P parted with a total of 4.07 thousand shares of company at average share price of $95.85. The total for the sales was set at $390.4 thousand. After this transaction, the Controller account balance stood at 14.67 thousand shares. The stock lost -12.99 percent since that insider sale. On 07/24/2018, Borgmann Kevin S., Senior Advisor to the CEO, sold 19.12 thousand shares at a price per share of $100. This removed 1.91 million shares from the insider’s fortune and the stock saw a -16.6 percent retreat in value since the news became public. This transaction left 43.45 thousand shares in the Senior Advisor to the CEO account.

On 07/24/2018, Chairman, CEO and President Fairbank Richard D performed a sale transaction worth $24.05 million. This sale at $99.33 each has eliminated 242.09 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -16.04 percent decrease since the transaction was reported. The insider now is left with 2.77 million shares remaining in the account. Wassmer Michael J, who performs the President, U.S. Card job, sold 2.28 thousand shares for $227.6 thousand. The disposal occurred on 07/24/2018 was priced at $100 per share. The share price plunged -16.6 percent since the reporting date. Wassmer Michael J now left with a stake of 81.78 thousand COF stock worth $6.4 million after the insider selling.