ValuEngine cut shares of Discover Financial Services (NYSE:DFS) from a buy rating to a hold rating in a research report sent to investors on Monday.
A number of other equities research analysts have also recently weighed in on the company. Royal Bank Of Canada reaffirmed a buy rating and issued a $82.00 price objective on shares of Discover Financial Services in a research note on Tuesday, May 16th. Wells Fargo & Company downgraded Discover Financial Services to a buy rating and set a $70.00 price target for the company. in a report on Friday, May 19th. BMO Capital Markets reaffirmed a hold rating and set a $70.00 price target on shares of Discover Financial Services in a report on Thursday, June 1st. BidaskClub raised Discover Financial Services from a strong sell rating to a sell rating in a report on Saturday, June 10th. Finally, Jefferies Group LLC reaffirmed a buy rating and set a $82.00 price target on shares of Discover Financial Services in a report on Friday, June 16th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and fifteen have given a buy rating to the stock. The company currently has a consensus rating of Buy and a consensus price target of $73.95.
Discover Financial Services (DFS) opened at 58.19 on Monday. The firm has a market cap of $21.67 billion, a PE ratio of 10.04 and a beta of 1.45. Discover Financial Services has a 52-week low of $53.91 and a 52-week high of $74.33. The firm’s 50-day moving average price is $60.21 and its 200 day moving average price is $62.97.
Discover Financial Services (NYSE:DFS) last posted its earnings results on Wednesday, July 26th. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.45 by $0.05. The business had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.40 billion. Discover Financial Services had a return on equity of 21.28% and a net margin of 20.91%. Discover Financial Services’s revenue was up 9.2% compared to the same quarter last year. During the same period last year, the business earned $1.47 EPS. On average, equities analysts anticipate that Discover Financial Services will post $5.92 earnings per share for the current year.
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The firm also recently declared a quarterly dividend, which was paid on Thursday, September 7th. Investors of record on Thursday, August 24th were paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.41%. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.30. The ex-dividend date was Tuesday, August 22nd. Discover Financial Services’s payout ratio is 24.18%.
Discover Financial Services announced that its board has authorized a share buyback program on Wednesday, June 28th that allows the company to buyback $2.23 billion in shares. This buyback authorization allows the financial services provider to purchase up to 9.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.
In other news, CEO David W. Nelms sold 30,000 shares of the company’s stock in a transaction that occurred on Monday, July 3rd. The shares were sold at an average price of $62.52, for a total value of $1,875,600.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Roger C. Hochschild sold 15,258 shares of the company’s stock in a transaction that occurred on Monday, July 3rd. The shares were sold at an average price of $62.48, for a total transaction of $953,319.84. Following the completion of the transaction, the chief operating officer now owns 830,257 shares of the company’s stock, valued at approximately $51,874,457.36. The disclosure for this sale can be found here. Over the last three months, insiders have sold 157,002 shares of company stock valued at $9,580,337. 0.96% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently made changes to their positions in the stock. GM Advisory Group Inc. lifted its stake in Discover Financial Services by 0.3% in the second quarter. GM Advisory Group Inc. now owns 5,304 shares of the financial services provider’s stock valued at $330,000 after acquiring an additional 17 shares during the last quarter. Jaffetilchin Investment Partners LLC lifted its stake in Discover Financial Services by 0.7% in the first quarter. Jaffetilchin Investment Partners LLC now owns 3,230 shares of the financial services provider’s stock valued at $221,000 after acquiring an additional 24 shares during the last quarter. South State Corp lifted its stake in Discover Financial Services by 0.7% in the second quarter. South State Corp now owns 3,457 shares of the financial services provider’s stock valued at $215,000 after acquiring an additional 25 shares during the last quarter. Advisor Partners LLC lifted its stake in Discover Financial Services by 0.4% in the second quarter. Advisor Partners LLC now owns 7,159 shares of the financial services provider’s stock valued at $445,000 after acquiring an additional 27 shares during the last quarter. Finally, First Bank & Trust lifted its stake in Discover Financial Services by 1.4% in the second quarter. First Bank & Trust now owns 3,135 shares of the financial services provider’s stock valued at $195,000 after acquiring an additional 42 shares during the last quarter. Institutional investors and hedge funds own 86.21% of the company’s stock.
About Discover Financial Services
Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.
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