On October 31, 2023, Richard Fairbank, Chairman and CEO of Capital One Financial Corp (COF, Financial), sold 7,782 shares of the company. This move is part of a series of transactions made by the insider over the past year, which have seen a total of 182,877 shares sold and no shares purchased.
Richard Fairbank is a prominent figure in the financial industry, having co-founded Capital One Financial Corp in 1988. Under his leadership, the company has grown into a Fortune 500 company and one of the largest banks in the United States by assets. Capital One Financial Corp is a diversified banking company that offers a broad array of financial products and services to consumers, small businesses, and commercial clients.
The insider's recent sell-off is part of a broader trend within Capital One Financial Corp. Over the past year, there have been 20 insider sells and no insider buys. This trend could be indicative of the insider's sentiment towards the company's current valuation and future prospects.
On the day of the insider's recent sell, shares of Capital One Financial Corp were trading for $99.75 apiece, giving the company a market cap of $38.2 billion. The stock's price-earnings ratio stands at 7.53, which is lower than both the industry median of 11.7 and the company's historical median price-earnings ratio.
According to GuruFocus Value, the stock is significantly undervalued, with a price-to-GF-Value ratio of 0.69. The GF Value is an intrinsic value estimate that takes into account historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
Despite the insider's recent sell-off, the stock's current valuation suggests that it could be an attractive investment opportunity. However, potential investors should also consider the insider's trading activity and the broader trend of insider sells within the company when making their investment decisions.
As always, it's important to conduct thorough research and consider a variety of factors before making any investment decisions. Insider trading activity can provide valuable insights, but it's just one piece of the puzzle.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
