Capital One Under Investigation for Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy COF?
Source: Globenewswire
- Earnings Miss: On January 22, 2026, Capital One reported Q4 2025 earnings of $3.86 per share, falling short of analyst expectations of $4.14, indicating a decline in profitability that could undermine investor confidence.
- Efficiency Ratio Shortfall: The company's efficiency ratio stood at 60%, also missing analyst forecasts, suggesting issues in cost management that may further impair future profitability.
- Significant Stock Drop: Following the earnings report, Capital One's stock price plummeted by $17.77, or 7.56%, to close at $217.30 on January 23, 2026, reflecting market concerns regarding the company's financial health.
- Legal Investigation Initiated: Pomerantz LLP is investigating whether Capital One and its executives engaged in securities fraud or other unlawful practices, which could expose the company to legal risks and potential liabilities, further impacting its market performance.
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Analyst Views on COF
Wall Street analysts forecast COF stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 190.000
Low
256.00
Averages
280.42
High
310.00
Current: 190.000
Low
256.00
Averages
280.42
High
310.00
About COF
Capital One Financial Corporation is a diversified financial services holding company with banking and non-banking subsidiaries. The Company offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. It operates through three segments: Credit Card, Consumer Banking and Commercial Banking. The Credit Card segment consists of its domestic consumer and small business card lending, and international card businesses in the United Kingdom and Canada. The Consumer Banking segment consists of its deposit gathering and lending activities for consumers and small businesses, and national auto lending. The Commercial Banking segment consists of its lending, deposit gathering, capital markets and treasury management services to commercial real estate and commercial and industrial customers. Its principal operating subsidiary is Capital One, National Association, which offers banking products and financial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Capital One Under Investigation for Securities Fraud
- Earnings Miss: On January 22, 2026, Capital One reported Q4 2025 earnings of $3.86 per share, falling short of analyst expectations of $4.14, indicating a decline in profitability that could undermine investor confidence.
- Poor Efficiency Ratio: The company's efficiency ratio stood at 60%, also missing analyst forecasts, reflecting inadequate cost control that may pressure future profitability.
- Significant Stock Drop: Following the earnings report, Capital One's stock price plummeted by $17.77, or 7.56%, closing at $217.30 on January 23, 2026, signaling market concerns regarding the company's financial health.
- Legal Investigation Launched: Pomerantz LLP is investigating whether Capital One and its executives engaged in securities fraud or other unlawful practices, which could expose the company to legal risks and potential liabilities, further impacting its market performance.
See More
Jim Cramer Trust Increases Holdings in Capital One and Wells Fargo
- Capital One Purchase: Acquiring 30 shares of Capital One at approximately $192 increases the weighting in Jim Cramer's Charitable Trust to 3% from 2.85%, raising the total share count to 610, indicating confidence in the stock's future performance.
- Wells Fargo Acquisition: Buying 25 shares of Wells Fargo at around $84 boosts the weighting in the trust to 3.47% from 3.41%, increasing the total shares to 1,625, reflecting expectations of stability for the bank in the current market environment.
- Market Reaction Analysis: Capital One's stock price fell due to a report from Citrini Research suggesting AI could threaten credit card companies, although analysts believe stablecoins will not significantly impact American Express's revenue model.
- Future Outlook: Capital One's shares are currently trading at less than 10 times the consensus 2026 earnings-per-share estimates, and management is expected to aggressively repurchase shares at these low multiples, indicating optimism about future profitability.
See More
US Stocks Plunge as Trade Policy Concerns Emerge
- Market Decline: On Monday, the S&P 500 Index fell by 1.04%, the Dow Jones Industrial Average dropped by 1.66%, and the Nasdaq 100 Index decreased by 1.21%, reflecting risk-off sentiment triggered by uncertainty over U.S. trade policy.
- Tariff Increase: President Trump signed an executive order raising global tariffs from 10% to 15%, a move that could curb global economic growth and negatively impact the stock market, particularly as it faces existing pressures.
- AI Risk Impact: A report from Citrini Research detailing potential risks of artificial intelligence on the global economy led to declines in software and payment stocks, with Datadog and Atlassian seeing drops of over 11% and 10%, respectively, indicating market concerns over tech stocks.
- Economic Data Highlights: Despite the stock market downturn, the U.S. January Chicago Fed National Activity Index rose by 0.39 to 0.18, surpassing expectations, suggesting that the economic fundamentals remain strong and may provide support for a future market rebound.
See More
Capital One Financial Shares Plunge Amid Market Concerns
- Market Sentiment Shift: Capital One Financial (COF) shares fell 8.84% to $190 as a wave of selling hit U.S. banks and asset management stocks due to concerns over private credit and AI-exposed lending, reflecting a reassessment of its credit model amid changing market conditions.
- Liquidity Risk Intensifies: Although Capital One has limited direct exposure to Blue Owl, its decision to sell a large portfolio at book value and accelerate cash back to investors underscores the rapid disappearance of liquidity when sentiment shifts, potentially forcing non-bank lenders to sell assets.
- Rising Credit Risk: As one of the largest U.S. credit card issuers, Capital One's reliance on unsecured consumer revolving credit raises concerns that tighter funding conditions and increased charge-offs could compress net interest margins, necessitating more aggressive loan-loss reserves.
- Technical Indicators Show Weakness: Currently, Capital One trades 11.2% below its 20-day and 17.1% below its 50-day simple moving averages, indicating a bearish trend, with an RSI of 38.16 suggesting neutral momentum and a MACD of -6.6560 reinforcing downward pressure on the stock.
See More
Technology and Financial Sectors Underperforming
- Technology Sector Decline: As of midday Monday, the Technology & Communications sector is down 2.5%, with Datadog Inc (DDOG) and CrowdStrike Holdings Inc (CRWD) showing losses of 11.7% and 11.1%, respectively, indicating weakness that may affect investor confidence.
- ETF Underperformance: The Technology Select Sector SPDR ETF (XLK), which tracks the sector, is down 1.7% on the day and 3.83% year-to-date, reflecting a broader trend of weakness in tech stocks that could lead to capital outflows.
- Financial Sector Pressure: The Financial sector is also underperforming, down 1.9%, with KKR & CO Inc (KKR) and Capital One Financial Corp (COF) losing 8.6% and 7.8%, respectively, signaling market concerns that may impact financing costs.
- Year-to-Date Performance: Year-to-date, Datadog Inc is down 24.92%, CrowdStrike Holdings Inc is down 26.34%, while KKR and COF have declined 27.29% and 20.37%, respectively, highlighting ongoing pressure on these companies that may affect their future financing and investment decisions.
See More
A Popular Blog Post Criticizes Stocks: Genuine Concerns About AI Exist.
AI's Economic Impact: A Substack post speculating on the negative effects of artificial intelligence on the economy gained significant attention on social media.
Investor Concerns: The post reflects deep concerns among investors regarding the implications of AI technology.
Stock Market Reaction: Large-cap stocks, such as DoorDash and American Express, were affected by the discussions surrounding AI's economic impact.
Social Media Buzz: The topic sparked widespread conversation and debate among users on social media platforms.
See More
Capital One Under Investigation for Securities Fraud
- Earnings Miss: On January 22, 2026, Capital One reported Q4 2025 earnings of $3.86 per share, falling short of analyst expectations of $4.14, indicating a decline in profitability that could undermine investor confidence.
- Poor Efficiency Ratio: The company's efficiency ratio stood at 60%, also missing analyst forecasts, reflecting inadequate cost control that may pressure future profitability.
- Significant Stock Drop: Following the earnings report, Capital One's stock price plummeted by $17.77, or 7.56%, closing at $217.30 on January 23, 2026, signaling market concerns regarding the company's financial health.
- Legal Investigation Launched: Pomerantz LLP is investigating whether Capital One and its executives engaged in securities fraud or other unlawful practices, which could expose the company to legal risks and potential liabilities, further impacting its market performance.
See More
Jim Cramer Trust Increases Holdings in Capital One and Wells Fargo
- Capital One Purchase: Acquiring 30 shares of Capital One at approximately $192 increases the weighting in Jim Cramer's Charitable Trust to 3% from 2.85%, raising the total share count to 610, indicating confidence in the stock's future performance.
- Wells Fargo Acquisition: Buying 25 shares of Wells Fargo at around $84 boosts the weighting in the trust to 3.47% from 3.41%, increasing the total shares to 1,625, reflecting expectations of stability for the bank in the current market environment.
- Market Reaction Analysis: Capital One's stock price fell due to a report from Citrini Research suggesting AI could threaten credit card companies, although analysts believe stablecoins will not significantly impact American Express's revenue model.
- Future Outlook: Capital One's shares are currently trading at less than 10 times the consensus 2026 earnings-per-share estimates, and management is expected to aggressively repurchase shares at these low multiples, indicating optimism about future profitability.
See More
US Stocks Plunge as Trade Policy Concerns Emerge
- Market Decline: On Monday, the S&P 500 Index fell by 1.04%, the Dow Jones Industrial Average dropped by 1.66%, and the Nasdaq 100 Index decreased by 1.21%, reflecting risk-off sentiment triggered by uncertainty over U.S. trade policy.
- Tariff Increase: President Trump signed an executive order raising global tariffs from 10% to 15%, a move that could curb global economic growth and negatively impact the stock market, particularly as it faces existing pressures.
- AI Risk Impact: A report from Citrini Research detailing potential risks of artificial intelligence on the global economy led to declines in software and payment stocks, with Datadog and Atlassian seeing drops of over 11% and 10%, respectively, indicating market concerns over tech stocks.
- Economic Data Highlights: Despite the stock market downturn, the U.S. January Chicago Fed National Activity Index rose by 0.39 to 0.18, surpassing expectations, suggesting that the economic fundamentals remain strong and may provide support for a future market rebound.
See More
Capital One Financial Shares Plunge Amid Market Concerns
- Market Sentiment Shift: Capital One Financial (COF) shares fell 8.84% to $190 as a wave of selling hit U.S. banks and asset management stocks due to concerns over private credit and AI-exposed lending, reflecting a reassessment of its credit model amid changing market conditions.
- Liquidity Risk Intensifies: Although Capital One has limited direct exposure to Blue Owl, its decision to sell a large portfolio at book value and accelerate cash back to investors underscores the rapid disappearance of liquidity when sentiment shifts, potentially forcing non-bank lenders to sell assets.
- Rising Credit Risk: As one of the largest U.S. credit card issuers, Capital One's reliance on unsecured consumer revolving credit raises concerns that tighter funding conditions and increased charge-offs could compress net interest margins, necessitating more aggressive loan-loss reserves.
- Technical Indicators Show Weakness: Currently, Capital One trades 11.2% below its 20-day and 17.1% below its 50-day simple moving averages, indicating a bearish trend, with an RSI of 38.16 suggesting neutral momentum and a MACD of -6.6560 reinforcing downward pressure on the stock.
See More
Technology and Financial Sectors Underperforming
- Technology Sector Decline: As of midday Monday, the Technology & Communications sector is down 2.5%, with Datadog Inc (DDOG) and CrowdStrike Holdings Inc (CRWD) showing losses of 11.7% and 11.1%, respectively, indicating weakness that may affect investor confidence.
- ETF Underperformance: The Technology Select Sector SPDR ETF (XLK), which tracks the sector, is down 1.7% on the day and 3.83% year-to-date, reflecting a broader trend of weakness in tech stocks that could lead to capital outflows.
- Financial Sector Pressure: The Financial sector is also underperforming, down 1.9%, with KKR & CO Inc (KKR) and Capital One Financial Corp (COF) losing 8.6% and 7.8%, respectively, signaling market concerns that may impact financing costs.
- Year-to-Date Performance: Year-to-date, Datadog Inc is down 24.92%, CrowdStrike Holdings Inc is down 26.34%, while KKR and COF have declined 27.29% and 20.37%, respectively, highlighting ongoing pressure on these companies that may affect their future financing and investment decisions.
See More
A Popular Blog Post Criticizes Stocks: Genuine Concerns About AI Exist.
AI's Economic Impact: A Substack post speculating on the negative effects of artificial intelligence on the economy gained significant attention on social media.
Investor Concerns: The post reflects deep concerns among investors regarding the implications of AI technology.
Stock Market Reaction: Large-cap stocks, such as DoorDash and American Express, were affected by the discussions surrounding AI's economic impact.
Social Media Buzz: The topic sparked widespread conversation and debate among users on social media platforms.
See More
