Sterne Agee CRT: Time To Buy Capital One (NYSE:COF)? Has $86 Valuation Target


Why Has Sterne Agee CRT Given Capital One (NYSE:COF) a $86 Price Target

Sterne Agee CRT revealed in an analysts report that it began coverage on Capital One (NYSE:COF) stock, with Neutral rating and a $86 TP.

From a total of 21 analysts covering Capital One Financial Corp. (NYSE:COF) stock, 17 rate it a ”Buy”, 0 a “Sell”, and 10 a ”Hold”. This means that 63% of the ratings are positive. The highest target price is $113 while the lowest target price is $80. The mean of all analyst targets is $91.38 with a 19.98% above today’s ($76.51) stock price. Capital One Financial Corp. was the topic of 17 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Oppenheimer maintained shares on October 6 with “Outperform” rating. RBC Capital Markets maintained shares with “Outperform” rating and $88 target share price in a report from a July 24. UBS maintained COF stock in a recent report from August 12 with “Buy” rating. Goldman Sachs downgraded the rating on July 24. Goldman Sachs has a “Neutral” rating and a $91 price target on shares. Finally, Credit Agricole upgraded the stock to “Buy” rating in a report issued on a July 27.

Approximately 730,880 shares of stock traded hands. Capital One Financial Corp. (NYSE:COF) has declined 6.99% since May 6, 2015 and is downtrending. It has underperformed by 6.20% the S&P500.

The overall sentiment of institutions has increased to 1.07 in Q2 2015. Its up 0.04, from 1.03 in 2015Q2. The ratio improved, as 73 institutions have sold all the shares of Capital One Financial Corp. that they owned while 273 funds have taken shares off the table. 71 funds have purchased shares for the first time while 300 added to their positions. These institutions now hold 483.25 million shares or 0.36% less than the 485.00 million shares they owned in 2015Q2.

The Fund Alethea Capital Management Llc currently is holding shares equating to 17.8% of its total portfolio in Capital One Financial Corp. representing a total of 161,667 shares. Another fund,Horseman Capital Management Ltd, is holding a total of 661,700 shares equating to 12.2% of their holdings. Additionally, Prosiris Capital Management Lp has a 218,461 share stake in Capital One Financial Corp. which represents 8.76% of their total portfolio. The Fund, Jackson Park Capital Llc, based out of Utah, has also built up a stake in the stock, which represents a total of 7.98% of their total portfolio. Finally Tegean Capital Management Llc, a fund which is based in the state of New York reported a total holdings of 126,000 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 11, 2015, shareholders of Capital One Financial Corp. have witnessed 0 insider buys, and a total of 9 insider sales equating to a net activity of approximately $26.17 million . Borgmann Kevin S. sold 1,811 shares worth approximately $165,562. Alexander Robert M. sold 14,212 shares worth approximately $1.30M. Finneran John G Jr sold 56,510 shares worth approximately $5.09 million. Witter Jonathan W. sold 39,258 shares worth approximately $3.48M. The company insider Schneider Ryan M. sold 21,600 shares worth $1.86 million.

Capital One Financial Corp is a diversified financial services holding company. The company has a market cap of $40.70 billion. The Firm and its subsidiaries offer a range of financial services and products to consumers, small businesses and commercial clients through branches, the Internet and other distribution channels. It has 10.75 P/E ratio. In addition to bank lending, treasury management and depository services, the Company offers credit and debit card products, auto loans and mortgage banking in markets across the United States.

According to Zacks Investment Research, “Capital One Financial is a holding company whose subsidiaries provide a variety of products and services to consumers using its proprietary information-based strategy. The corporation’s principal subsidiary, Capital One Bank offers credit card products. Capital One Services, Inc., another subsidiary of the corporation, provides various operating, administrative and other services to the corporation and its subsidiaries.” Get a free copy of the Zacks research report on Capital One Financial Corp. (COF).