Shares of Capital One Financial Corp rebounded from its losses in the past two weeks on Tuesday after billionaire investor Warren Buffett's Berkshire Hathaway Inc disclosed it had taken a stake of nearly $1 billion in the credit cards-focused bank.
Capital One's stock was up 2% at $91.53, its highest since May 1. The bank's shares have shed around 15% since early March as the banking crisis has clobbered shares of U.S. regional lenders.analysts said the deep selloff of U.S. regional bank stocks was overdone as markets have focused on deposit outflows instead of deposit costs, a better gauge of their financial stability.
Since regional bank deposits are quite sticky and data does not show outflows accelerating, the analysts said their shares are now cheap and are headed for a rebound in the next few months "Recent declines seem overdone as quarter-to-date deposit outflows are tracking in-line with seasonality," the analysts said.
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