Cramer's Trust Buys 65 Capital One Shares as Oil Drops 5% and Baird Backs Stock
Updated
Updated · CNBC · Jun 15
Cramer's Trust Buys 65 Capital One Shares as Oil Drops 5% and Baird Backs Stock
1 articles · Updated · CNBC · Jun 15
Summary
Jim Cramer's Charitable Trust bought 65 Capital One shares at about $193.81, lifting its stake to 675 shares and portfolio weight to roughly 3.25% from 2.9%.
A roughly 5% drop in oil prices after the U.S. and Iran agreed to end the war and reopen the Strait of Hormuz drove the move, with cheaper gasoline seen easing pressure on consumer credit.
Baird reinforced the bullish case Monday by naming Capital One a "Bullish Fresh Pick," arguing the stock trades at just over 7 times its 2027 EPS estimate and at a 30% to 35% discount to other credit-sensitive financials.
The firm also said Capital One has earnings flexibility and capital strength: a 30% cut in marketing spend could offset a 50-basis-point rise in credit provisions, while the Discover integration and buybacks add longer-term upside.