Capitol Federal Financial (NASDAQ:CFFN) Hits New 52-Week High After Better-Than-Expected Earnings

Capitol Federal Financial (NASDAQ:CFFN)’s share price hit a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $7.31 and last traded at $7.2250, with a volume of 710805 shares changing hands. The stock had previously closed at $6.94.

The savings and loans company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.15 by $0.01. The firm had revenue of $56.80 million during the quarter, compared to analyst estimates of $56.02 million. Capitol Federal Financial had a net margin of 16.98% and a return on equity of 6.99%.

Capitol Federal Financial Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 20th. Stockholders of record on Friday, February 6th will be issued a dividend of $0.085 per share. This represents a $0.34 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend is Friday, February 6th. This is a positive change from Capitol Federal Financial’s previous quarterly dividend of $0.04. Capitol Federal Financial’s payout ratio is currently 60.71%.

Key Capitol Federal Financial News

Here are the key news stories impacting Capitol Federal Financial this week:

• Positive Sentiment: Q1 earnings beat — CFFN reported $0.16 EPS vs. a $0.15 consensus and revenue of $56.8M vs. $56.02M, driven by higher net margin and improving ROE. This confirms modest operating momentum and likely explains part of the stock strength. Zacks article
• Positive Sentiment: Commercial-banking growth — Company reporting highlighted “strong quarterly commercial banking growth,” which investors view as a durable revenue/income driver beyond core mortgage/consumer activity. TipRanks article
• Positive Sentiment: Dividend hike — CFFN announced a quarterly dividend of $0.085 (ex-div Feb 6, payable Feb 20), a 112.5% increase from the prior $0.04, implying a ~4.8% yield. The larger payout increases income appeal for yield-focused investors. (Company disclosure)
• Positive Sentiment: Analyst target raised — Keefe, Bruyette & Woods raised their price target from $6.50 to $7.50 and maintained a “market perform” rating, signaling modest analyst support for upside near current levels. Benzinga article
• Neutral Sentiment: Short-interest data appears anomalous — January short-interest was reported as 0 shares with a 0.0 days-to-cover metric, which likely reflects a reporting/data issue rather than meaningful short-covering pressure. Investors should treat this item cautiously.

Analyst Ratings Changes

A number of research analysts have weighed in on CFFN shares. Weiss Ratings reissued a “hold (c)” rating on shares of Capitol Federal Financial in a report on Monday, December 29th. Zacks Research upgraded shares of Capitol Federal Financial to a “hold” rating in a research note on Tuesday, November 4th. Piper Sandler initiated coverage on shares of Capitol Federal Financial in a research report on Wednesday, October 22nd. They set a “neutral” rating and a $7.00 target price for the company. Finally, Keefe, Bruyette & Woods upped their target price on shares of Capitol Federal Financial from $6.50 to $7.50 and gave the company a “market perform” rating in a report on Thursday. Four research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $7.25.

Institutional Investors Weigh In On Capitol Federal Financial

Several institutional investors and hedge funds have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership raised its position in Capitol Federal Financial by 36.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,926,820 shares of the savings and loans company’s stock worth $17,854,000 after purchasing an additional 785,339 shares during the period. HoldCo Asset Management LP bought a new position in shares of Capitol Federal Financial during the second quarter valued at approximately $39,443,000. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Capitol Federal Financial by 29.9% in the second quarter. Wealth Enhancement Advisory Services LLC now owns 43,430 shares of the savings and loans company’s stock worth $279,000 after buying an additional 9,994 shares during the period. CWM LLC raised its holdings in shares of Capitol Federal Financial by 45.7% in the second quarter. CWM LLC now owns 78,812 shares of the savings and loans company’s stock worth $481,000 after buying an additional 24,714 shares during the period. Finally, Fourthstone LLC bought a new stake in shares of Capitol Federal Financial during the 2nd quarter worth approximately $1,210,000. Institutional investors own 88.51% of the company’s stock.

Capitol Federal Financial Trading Up 2.8%

The stock has a fifty day moving average of $6.84 and a 200-day moving average of $6.45. The company has a market cap of $959.51 million, a PE ratio of 13.04 and a beta of 0.69. The company has a debt-to-equity ratio of 1.76, a quick ratio of 1.26 and a current ratio of 1.24.

Capitol Federal Financial Company Profile

Capitol Federal Financial, Inc is a bank holding company headquartered in Kansas City, Missouri. Through its principal subsidiary, Capitol Federal Savings Bank, the company provides a range of retail and commercial banking products and services. These offerings include checking and savings accounts, certificates of deposit, home equity lines of credit and other consumer loan products. In addition, Capitol Federal Financial operates an active mortgage origination business, making residential mortgage loans both for its own portfolio and for sale in the secondary market.

Established in 1893, Capitol Federal has grown into one of the nation’s largest mutual savings banks, emphasizing long-term customer relationships and conservative credit practices.