Adage Capital Partners GP L.L.C. has acquired a significant stake in Capital One Financial Corporation, investing approximately $120.39 million in the second quarter of 2023. This acquisition involved the purchase of 565,828 shares of the financial services provider, which was disclosed in a recent filing with the Securities and Exchange Commission (SEC). Following this transaction, Adage Capital holds about 0.09% of Capital One Financial.
Several other institutional investors also made notable adjustments to their holdings in Capital One during the same period. Kingstone Capital Partners Texas LLC dramatically increased its position by 588,668.3%, acquiring an additional 117,427,549 shares for a total of approximately $24.99 billion. Similarly, Vanguard Group Inc. raised its stake by 74.8%, now owning 56,380,913 shares valued at nearly $12 billion. State Street Corp and Geode Capital Management also expanded their positions significantly, while Norges Bank entered the market with a new stake valued at $1.7 billion. Collectively, institutional investors account for 89.84% of Capital One’s stock.
Insider Activity and Market Reactions
In related news, insider Frank G. Laprade III sold 17,840 shares on November 13, 2023, at an average price of $222.03, totaling around $3.96 million. This sale reduced his holdings by 26.97%. Another insider, Celia Karam, sold 2,936 shares on December 1, 2023, for approximately $640,488.40, representing a 4.42% decrease in her ownership. Over the past 90 days, insiders have sold 280,218 shares worth around $62.4 million, with insiders currently owning 1.26% of the company’s stock.
Market analysts have been actively reviewing Capital One Financial’s stock. On October 22, 2023, JPMorgan Chase & Co. raised its price target from $235.00 to $237.00 while maintaining a “neutral” rating. Other firms, including Cowen and Evercore ISI, have expressed positive sentiments, with Evercore increasing its target to $255.00. Currently, three analysts rate the stock as a “Strong Buy,” seventeen as “Buy,” and seven as “Hold.” The consensus rating stands at “Moderate Buy,” with an average target price of $262.70 according to MarketBeat.com.
Financial Performance and Future Outlook
As of December 1, 2023, shares of Capital One Financial (NYSE: COF) opened at $237.71. The company reported a debt-to-equity ratio of 0.45, a current ratio of 1.03, and a quick ratio of 1.03. The stock has a market capitalization of approximately $151.12 billion, with a price-to-earnings ratio of 100.30. In its most recent earnings report on November 3, 2023, Capital One Financial announced earnings per share (EPS) of $5.95 and revenue of $15.46 billion for the quarter.
In addition to these financial metrics, Capital One declared a quarterly dividend of $0.80 paid on December 1, 2023, which represents an annualized dividend of $3.20 and a yield of 1.3%. This increase from the previous quarterly dividend of $0.60 reflects the company’s strong financial position. The dividend payout ratio currently stands at 135.02%.
Capital One Financial Corporation, headquartered in the United States, operates as a financial services holding company. It provides a variety of financial products and services across the United States, Canada, and the United Kingdom through its segments: Credit Card, Consumer Banking, and Commercial Banking.
