INVESTIGATION ALERT: Edelson Lechtzin LLP Announces Investigation of Capital One Financial Corporation (NYSE: COF) and Encourages Investors with Substantial Losses to Contact the Firm [Accessibility Statement] Skip NavigationNEWTOWN, Pa., Feb. 17, 2026 /PRNewswire/ -- Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving Capital One Financial Corporation ("Capital One") (NYSE: COF), resulting from allegations of providing potentially misleading business informat ...

Core Insights - Capital One Financial has seen significant changes in institutional ownership, with several large investors increasing their stakes in the company during the third quarter [1][7] - Insider trading activity includes notable sales by executives, indicating a decrease in their ownership percentages [2] - The company's stock performance shows a market cap of $141.59 billion and a P/E ratio of 75.24, with a recent stock price of $222.72 [3] Institutional Ownership - Westside Investment Management Inc. increased its position by 39.3%, owning 918 shares valued at $196,000 after purchasing 259 additional shares [1] - Cornerstone Planning Group LLC raised its holdings by 103.4%, now owning 236 shares worth $52,000 after buying 120 shares [1] - Physician Wealth Advisors Inc. boosted its position by 116.0%, owning 337 shares valued at $72,000 after acquiring 181 shares [1] - Raleigh Capital Management Inc. grew its holdings by 28.1%, now owning 597 shares worth $127,000 after buying 131 shares [1] - Mission Wealth Management LP increased its stake by 13.2%, owning 4,303 shares valued at $915,000 after purchasing 502 shares [1] - Institutional investors and hedge funds own 89.84% of the stock [1] Insider Activity - Insider Lia Dean sold 3,284 shares at an average price of $223.68, totaling $734,565.12, resulting in a 4.47% decrease in ownership [2] - Insider Ravi Raghu sold 13,450 shares at an average price of $250.00, totaling $3,362,500.00, leading to a 30.72% decrease in ownership [2] - In the last 90 days, insiders sold 52,114 shares valued at $12,092,070, with insiders currently owning 1.26% of the stock [2] Financial Performance - Capital One Financial reported an EPS of $3.86 for the last quarter, missing estimates by $0.28, with a net margin of 3.54% and a return on equity of 10.68% [4] - The company had revenue of $15.62 billion, exceeding expectations of $15.49 billion, and a year-over-year revenue increase of 53.3% [4] - Analysts anticipate an EPS of 15.65 for the current fiscal year [4] Dividend Information - A quarterly dividend of $0.80 will be paid on March 2nd, with an annualized dividend of $3.20 and a yield of 1.4% [5] - The current dividend payout ratio is 108.11% [5] Stock Performance Metrics - The stock opened at $222.72, with a debt-to-equity ratio of 0.44, a quick ratio of 1.04, and a current ratio of 1.04 [3] - The 50-day simple moving average is $235.54, and the 200-day simple moving average is $223.50 [3] - The stock has a 52-week low of $143.22 and a high of $259.64 [3] Analyst Ratings - Wells Fargo raised its price target from $265.00 to $280.00, maintaining an "overweight" rating [8] - TD Cowen reiterated a "buy" rating, while Wall Street Zen downgraded from "buy" to "hold" [8] - Goldman Sachs maintained a "buy" rating with a target price of $300.00, and JPMorgan Chase increased its target from $237.00 to $256.00 [8] - The consensus rating is "Moderate Buy" with an average target price of $274.70 [8]

Core Viewpoint - Capital One Financial Corp. is considered one of the best cheap stocks to buy for 2026, despite a lowered price target and expected earnings growth softening due to the acquisition of Brex for approximately $5.15 billion [1][2]. Group 1: Analyst Adjustments - Evercore ISI analyst John Pancari lowered the price target on Capital One to $265 from $290 while maintaining an Outperform rating [1]. - The updated target reflects a reduction in the 2026 EPS estimate to $18.87 from $19.26 and the 2027 EPS estimate to $22.83 from $23.32, assuming the Brex deal closes in Q3 2026 [2]. Group 2: Acquisition Impact - The acquisition of Brex is expected to result in approximately 5% tangible book value dilution and 1% core EPS dilution due to share issuance [2]. - Near-term expenses are projected to rise as Brex is integrated into Capital One's payments platform and as investments in the Discover Financial Services network continue [3]. Group 3: Management and Competitive Positioning - Despite challenges, management's commitment to prudent capital management and consistent earnings power is viewed positively [4]. - The Brex acquisition is seen as a strategic move to enhance Capital One's competitiveness against American Express in the payments space [4]. Group 4: Company Overview - Capital One Financial Corp. provides a range of consumer and commercial banking services, including credit cards, auto loans, savings accounts, and small business lending, with operations across the United States [5].

Group 1: Holdings and Institutional Activity - Csenge Advisory Group reduced its holdings in Bank of America by 29.4%, owning 29,695 shares after selling 12,347 shares, valued at $1,532,000 [2] - Quaker Wealth Management increased its position by 246.5%, now owning 523 shares valued at $25,000 after purchasing 880 additional shares [3] - RMG Wealth Management acquired a new position valued at approximately $28,000 during the 2nd quarter [3] - Steph & Co. grew its stake by 224.3%, now owning 548 shares valued at $28,000 after acquiring 379 shares [3] - CGC Financial Services increased its holdings by 585.4%, now owning 610 shares worth $29,000 after acquiring 521 shares [3] - Marquette Asset Management bought a new stake worth approximately $30,000 during the 3rd quarter [3] - Institutional investors own 70.71% of Bank of America's stock [3] Group 2: Analyst Ratings and Price Targets - TD Cowen lowered its price target from $66.00 to $64.00 while maintaining a "buy" rating [4] - HSBC upgraded its rating from "hold" to "buy" with a target price of $50.00 [4] - Evercore ISI set a price target of $59.00 [4] - Truist Financial reduced its price objective from $62.00 to $60.00 while keeping a "buy" rating [4] - Weiss Ratings reiterated a "buy (b)" rating [4] - The average rating for Bank of America is "Moderate Buy" with a consensus target price of $59.74 [4] Group 3: Financial Performance - Bank of America reported $0.98 EPS for the last quarter, beating estimates of $0.96 by $0.02 [6] - The company had revenue of $28.53 billion, exceeding analyst estimates of $27.73 billion, with a year-over-year revenue increase of 12.3% [6] - The return on equity was 11.07% and the net margin was 16.23% [6] Group 4: Stock Performance and Dividends - Bank of America shares opened at $53.02, with a 12-month low of $33.06 and a high of $57.55 [5] - The company has a market cap of $387.18 billion, a price-to-earnings ratio of 13.84, and a beta of 1.29 [5] - A quarterly dividend of $0.28 was paid, representing an annualized dividend of $1.12 and a yield of 2.1% [7] - The dividend payout ratio is 29.24% [7]

Core Insights - SoFi Technologies has shown significant recovery in its stock price, trading around $26 after hitting a low of $4.30 in December 2022, driven by declining interest rates and the resumption of student loan payments [1][3][6] Company Overview - Founded in 2011, SoFi initially focused on student loans and has since expanded into a comprehensive fintech platform offering mortgages, auto loans, personal loans, credit cards, insurance, estate planning, and stock trading tools [3][4] - The acquisition of Galileo in 2020 and obtaining a U.S. bank charter in 2022 have allowed SoFi to grow rapidly and leverage data for AI-driven financial services [4] Financial Performance - From 2021 to 2024, SoFi's year-end members increased from 2.5 million to 10.1 million, products in use rose from 1.9 million to 14.7 million, and adjusted annual revenue grew from $1.01 billion to $2.61 billion, reflecting a compound annual growth rate (CAGR) of 37% [6] - In the first nine months of 2025, adjusted revenue increased by 38% year over year to $2.58 billion, with member growth of 35% to 12.6 million and products in use climbing 36% to 18.6 million [7] Market Trends - The growth is primarily driven by younger millennial and Gen Z users who favor digital banking over traditional banks, allowing SoFi to capture a larger market share [8] Future Projections - Analysts project a CAGR of 27% for revenue and 44% for adjusted EBITDA from 2024 to 2027, driven by four key catalysts: expansion of the loan platform, growth in customer deposits, introduction of new services, and entry into blockchain and crypto markets [9][10][11][12] - If SoFi meets these projections, its adjusted EBITDA could grow at a CAGR of 20% through 2035, potentially leading to an eightfold increase in stock price over the next decade [13]

Core Insights - The Federal Reserve is anticipated to cut its benchmark interest rate for the first time in nine months, amid slowing inflation progress and a cooling labor market [1][3]. Interest Rate Impact - The federal funds rate influences the borrowing and lending rates between banks, indirectly affecting consumer borrowing costs for credit cards, auto loans, and mortgages [2]. - The Fed's dual mandate aims to manage prices and encourage full employment, creating a challenging scenario with inflation above the 2% target and a weak job market [3]. Mortgage Market Effects - A rate cut will have a gradual impact on mortgage rates, with the market already pricing in the cut, making immediate noticeable differences unlikely for most consumers [4]. - Anticipation of the rate cut has led to falling mortgage rates since January, providing some relief for borrowers over time [5]. Borrower Relief - Lower interest rates can ease the financial burden on indebted households, allowing opportunities for refinancing or consolidating debts [6]. Savings Account Yields - Falling interest rates will gradually reduce the attractive yields on certificates of deposit (CDs) and high-yield savings accounts, which currently offer rates around 4% for CDs and 4.6% for high-yield savings accounts [7][8]. - Despite the decline, these rates remain better than recent years, providing a good option for consumers seeking returns on accessible funds [8].

Core Insights - SoFi's stock has surged nearly 270% over the past year, driven by strong revenue growth, rising profits, and an expanding ecosystem, with expectations for lower interest rates further amplifying gains [1][7] - The company has transitioned from a focus on student loans to a comprehensive suite of financial services, including mortgages, auto loans, personal loans, credit cards, insurance, estate planning, and stock trading tools [3][4] - SoFi's digital-only approach allows for faster growth compared to traditional banks, leveraging data for AI algorithms that enhance service delivery [4] Growth Metrics - From 2021 to 2024, SoFi's year-end members increased from 2.5 million to 10.1 million, while products in use rose from 1.9 million to 14.7 million, with adjusted annual revenue growing at a CAGR of 37% from $1.01 billion to $2.61 billion [5] - Projected member growth shows an increase from 8.8 million in Q2 2024 to 11.7 million by Q2 2025, with year-over-year growth rates stabilizing around 34% [6] - The number of products in use is expected to grow from 12.8 million in Q2 2024 to 17.1 million by Q2 2025, with similar year-over-year growth rates [6] Customer Demographics - The growth is significantly driven by younger Millennial and Gen Z users who prefer digital banking solutions over traditional banking methods [8] - SoFi's diverse service offerings, including a free financial planning app, attract a wide range of customers, with an expected overall member base growth of about 30% for the full year [8]

Core Insights - Capital One Financial has shown strong demand and is gaining traction in the market, highlighted by its inclusion in the Investor's Business Daily Breakout Stocks Index alongside other financial firms [2][4] - The company completed its acquisition of Discover in May and plans to continue offering Discover-branded credit card products [3] - Recent purchases by leading mutual funds indicate a positive outlook, with over $300 million worth of Capital One stock acquired [3] Demand Indicators - Capital One has a 1.7 up/down volume ratio and has experienced seven consecutive quarters of rising fund ownership [4] - Ninety-two funds with an A+ rating from IBD hold positions in Capital One, indicating strong institutional interest [4] Technical Analysis - Capital One stock is forming an early-stage cup pattern with a buy point at 232.45 [4] - The 21-day exponential moving average is above the 50-day moving average, showing resilient technical strength [5] - The stock found support and bounced back above its 21-day line, indicating potential for further gains [5]

Core Insights - Expanding access to credit is a significant challenge in consumer finance, with legacy systems causing inefficiencies and limiting capital access [1][4] - Figure Technology Solutions aims to modernize consumer lending through AI and blockchain integration, enhancing loan origination, underwriting, and trading processes [1][3] Company Overview - Founded in 2018, Figure started with home equity lending and has developed a vertically integrated model encompassing origination, marketplace distribution, and capital markets execution [3] - The company is expanding its product offerings beyond home equity loans to include a variety of credit products and digital asset marketplaces [3][5] Market Potential - Figure estimates its addressable market in lending and capital markets at approximately $185 billion in annual revenue potential [5] - The asset tokenization market is projected to reach $16 trillion by 2030, while the stablecoin market could approach $5 trillion in the same timeframe [5] Operational Efficiency - The company claims to have achieved profitability with a capital-efficient model, generating revenue from fees on originations, servicing, and technology usage [6] - Partner-branded lending constitutes 77% of total originations, with 168 active partners as of mid-2025 [6] Regulatory Framework - Figure holds over 180 lending and servicing licenses, 48 money transmitter licenses, and SEC registration as a broker-dealer, which supports its scaling ambitions [7] Performance Metrics - For the 12 months ending June 30, 2025, Figure facilitated approximately $6 billion in HELOC lending, a 29% increase from the previous year, with a compound annual growth rate of 70% since mid-2021 [8] - The Figure Connect Marketplace processed $1.3 billion in loan volume in its first year, connecting originators and investors directly [8] Financial Performance - For the six months ending June 30, 2025, net revenue was $191 million, up from $156 million year-over-year, with net income of $29 million compared to a $13 million loss the previous year [12] - Adjusted EBITDA reached $83 million, more than double the prior year [12] Product Diversification - Although HELOCs currently account for 99% of originations, Figure is exploring new products such as debt service coverage ratio loans and digital asset-backed loans [12] - The company plans to use IPO proceeds to invest in new product development and expand its loan marketplace [12]

Core Insights - F & M Bank reported second-quarter 2025 earnings with a notable expansion in net interest margin and improvement in tangible book value per share, while maintaining a stable quarterly dividend [1][5][10] Financial Performance - Earnings per share (EPS) for Q2 2025 were $0.84, a decrease of 2.3% from $0.86 in Q2 2024 [2] - Net interest margin increased to 3.48%, up 0.76 percentage points from 2.72% in the previous year [2] - Return on average equity decreased to 12.81% from 15.58% year-over-year [2] - Tangible book value per share rose to $25.68, reflecting a 13.5% increase from $22.62 in Q2 2024 [2][7] Revenue and Income Sources - The bank's net income (GAAP) reached $3.0 million, a 21% increase from the previous quarter [5] - Noninterest income declined slightly due to lower mortgage and advisory fees, but was partially offset by gains in card and title service revenue [6] Loan Portfolio and Asset Quality - Total loans held for investment increased to $848.8 million, with residential mortgage loans and farmland-secured loans driving growth [8] - Asset quality metrics showed mixed results, with nonperforming loans rising to 0.90% of total loans and a provision for credit losses of $1.2 million [9] Capital and Liquidity - The bank's capital ratios remain strong, with a leverage ratio of 8.89% and a total risk-based capital ratio of 13.73%, well above regulatory minimums [9] - The liquidity position was stable, with over $211 million available on the balance sheet as of June 30, 2025 [10] Future Outlook - Management expressed confidence in steady loan demand into the third quarter, although no formal guidance on future earnings or revenue was provided [11] - Key trends to monitor include asset quality metrics, deposit trends, and underlying core margin and loan yields [12]