KBW Reiterates Hold Rating on Capitol Federal Financial with Price Target of $6.50

KBW analyst Damon Delmonte maintains a Hold rating on Capitol Federal Financial with a price target of $6.50, citing the company's stable financial position and conservative lending practices. The analyst consensus is also Hold, with a price target consensus of $6.50. Despite a one-year high of $7.20 and a low of $4.90, the stock has seen an increase in insider buying activity in recent months.

BlackRock, Inc. (Trades, Portfolio), one of the world's leading investment firms, recently executed a notable transaction involving Capitol Federal Financial Inc (CFFN, Financial). On June 30, 2025, BlackRock reduced its holdings by 1,398,782 shares, marking a 7.37% decrease in its position. This strategic move left BlackRock with a total of 17,580,461 shares in Capitol Federal Financial Inc, maintaining a 13.20% holding in the company. The transaction was executed at a traded price of $6.10 per share, slightly below the current market price of $6.21, indicating a calculated decision by the firm [1].

Capitol Federal Financial Inc is a bank holding company operating through its wholly-owned subsidiary, Capitol Federal Savings Bank. The company primarily serves metropolitan areas within Kansas, focusing on community banking operations. With a market capitalization of $808.087 million and a current stock price of $6.21, Capitol Federal Financial Inc engages in traditional banking functions, including deposit-taking and investing in first-lien residential mortgages. The company's primary source of income is net interest income [1].

The recent transaction had no immediate impact on BlackRock's overall portfolio position, as the firm continues to hold a significant stake in Capitol Federal Financial Inc. The decision to reduce shares at a traded price of $6.10, slightly below the current market price, suggests a strategic approach by BlackRock to optimize its investment in the company. Despite the reduction, BlackRock maintains a substantial 13.20% holding in Capitol Federal Financial Inc [1].

Capitol Federal Financial Inc reported quarterly adjusted earnings of 14 cents per share for the quarter ended June 30, 2025, higher than the same quarter last year when the company reported EPS of 10 cents. The lone analyst forecast for the quarter was for earnings of 12 cents per share. Revenue rose 12.7% to $45.46 million from a year ago; analysts expected $45.61 million. The company reported quarterly net income of $18.38 million [2].

KBW analyst Damon Delmonte maintains a Hold rating on Capitol Federal Financial with a price target of $6.50, citing the company's stable financial position and conservative lending practices. The analyst consensus is also Hold, with a price target consensus of $6.50. Despite a one-year high of $7.20 and a low of $4.90, the stock has seen an increase in insider buying activity in recent months [3].

In conclusion, BlackRock's decision to reduce its stake in Capitol Federal Financial Inc reflects a strategic adjustment within its portfolio. While the transaction did not significantly alter BlackRock's overall position, it highlights the firm's ongoing evaluation of its investments to align with its broader financial objectives.

References:
[1] https://www.gurufocus.com/news/2999746/blackrock-inc-reduces-stake-in-capitol-federal-financial-inc
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TK1E3:0-capitol-federal-financial-inc-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[3] https://www.marketbeat.com/instant-alerts/capitol-federal-financial-cffn-to-release-quarterly-earnings-on-wednesday-2025-07-16/