At Capital One Financial Corporation (COF), the Share Price Got a Bit Ahead of the Fundamentals

Shares of Capital One Financial Corporation (NYSE:COF) recorded 1.77% gain during trading session on August 13th, 2019. The script traded as low as $85.33 and last traded at $87.21. 3.07 million shares changed exchanged hands during trading, a drop of -36.94% from the 30-day average session volume of 2.24M shares. The firm had previously closed at $85.69. The company has $475.96M outstanding shares, a price-to-earnings ratio of 7.55, price-to-earnings-growth ratio of 1.48and a beta of 1.25. The company has a RSI of 42.43, ATR of 2.40 and a volatility of 2.36% this week. COF has a 52 week low price of $69.90 and a 52 week high price of $101.26.

Investors have identified the tech company Capital One Financial Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 41.51B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Capital One Financial Corporation (COF) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For COF, the company has in raw cash 81.13 billion on their books with 0 currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 14.55 billion total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.

COF were able to record 8.71 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 2.33 billion. In cash movements, the company had a total of 9.11 billion as operating cash flow.

Potential earnings growth for Capital One Financial Corporation (COF)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Capital One Financial Corporation recorded a total of 7.08 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.07% coming in sequential stages and their sales for the third quarter reducing by -0.00%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.33 billion trying to sell their products during the last quarter, with the result yielding a gross income of 5.75 billion. This allows shareholders to hold on to 475.96M with the revenue now reading 3240 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (2.42 cents a share).

Is the stock of COF attractive?

Having a look at the company’s valuation, the company is expected to record 11.73 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on COF sounds very interesting.

In related news, President, U.S. Card Wassmer Michael J sold 8,212 shares of the company’s stock in a transaction that recorded on July 24th, 2019. The sale was performed at an average price of 95.03, for a total value of 780,386. As the sale deal closes, the Chief Human Resources Officer Wassmer Michael J now sold 9,329 shares of the company’s stock, valued at 867,597. Also, President, U.S. Card Wassmer Michael J sold 4,294 shares of the company’s stock in a deal that was recorded on July 5th, 2019. The shares were sold at an average price of 93.00 per share, with a total market value of 92,891. Following this completion of acquisition, the Director now holds 14,500 shares of the company’s stock, valued at 1,330,227. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.90%.

7 out of 21 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Capital One Financial Corporation stock. 0 analysts has assigned a Sell rating on the COF stock. The 12-month mean consensus price target for the company’s shares has been set at $107.45.