Capital One Shares Soar 7.28% in Five Days on Acquisition News

Capital One Financial (COF) shares rose 0.81% today, marking the fifth consecutive day of gains, with a 7.28% increase over the past five days. The share price reached its highest level since February 2025, with an intraday gain of 0.96%.

The strategy of buying COF shares after they reached a recent high and holding for 1 week showed underperformance over the past 5 years. The annualized return was -3.2%, significantly lower than the market return of 6.5%. This indicates that relying on recent highs and short-term holding periods may not be an effective strategy for COF or similar stocks.

Capital One's stock price has been influenced by several significant developments. The completion of a major acquisition has placed the company's shares in a buy range, potentially driving the stock price higher. This strategic move is expected to have a positive impact on the company's financial performance and market position.

Additionally, the potential acquisition of Discover Financial Services has garnered attention from analysts. Vincent Caintic from BTIG noted that Capital One could enhance Discover's acceptance rate by employing similar strategies, which could further boost COF's stock price. This acquisition, if successful, could lead to improved market sentiment and increased investor confidence.

Another factor affecting Capital One's stock price is the redemption of its Series P Preferred Stock, scheduled for June 30, 2025. This action will halt dividend accruals and alter the company's financial obligations, potentially influencing investor perception and stock price movements. Investors are closely monitoring this development as it could impact the company's financial health and future prospects.

Barclays has also increased its target price for Capital One to $253 following the Discover Financial Services acquisition. This adjustment reflects positive market sentiment and the potential for stock price growth, further bolstering investor confidence in the company's future performance.