Shares of Discover Financial Services (NYSE:DFS) traded up 0.28% during midday trading on Wednesday, reaching $60.78. The company’s stock had a trading volume of 2,256,701 shares. The stock has a 50-day moving average price of $61.27 and a 200 day moving average price of $64.93. The stock has a market capitalization of $22.79 billion, a PE ratio of 10.49 and a beta of 1.46. Discover Financial Services has a 52 week low of $53.91 and a 52 week high of $74.33.
Discover Financial Services (NYSE:DFS) COO Roger C. Hochschild sold 15,258 shares of the company’s stock in a transaction on Tuesday, August 1st. The shares were sold at an average price of $61.04, for a total value of $931,348.32. Following the completion of the sale, the chief operating officer now directly owns 814,999 shares in the company, valued at approximately $49,747,538.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.
Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Wednesday, July 26th. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.45 by $0.05. The firm had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.40 billion. Discover Financial Services had a net margin of 20.91% and a return on equity of 21.00%. Discover Financial Services’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the previous year, the business posted $1.47 EPS. Equities analysts forecast that Discover Financial Services will post $5.94 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 7th. Investors of record on Thursday, August 24th will be given a dividend of $0.35 per share. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Tuesday, August 22nd. This represents a $1.40 dividend on an annualized basis and a yield of 2.30%. Discover Financial Services’s dividend payout ratio (DPR) is presently 20.73%.
Discover Financial Services announced that its board has initiated a share repurchase plan on Wednesday, June 28th that permits the company to buyback $2.23 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 9.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.
Several analysts have weighed in on DFS shares. Zacks Investment Research lowered Discover Financial Services from a “hold” rating to a “sell” rating in a report on Monday. William Blair reissued an “outperform” rating on shares of Discover Financial Services in a report on Tuesday, July 18th. Deutsche Bank AG lowered Discover Financial Services from a “buy” rating to a “hold” rating and lowered their target price for the company from $87.00 to $71.00 in a report on Monday, May 1st. Instinet reissued a “buy” rating and issued a $81.00 target price (down previously from $86.00) on shares of Discover Financial Services in a report on Wednesday, July 12th. Finally, Wells Fargo & Company downgraded Discover Financial Services to a “buy” rating and set a $70.00 price objective on the stock. in a research report on Friday, May 19th. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and seventeen have given a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average price target of $74.21.
Hedge funds have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC purchased a new stake in Discover Financial Services during the first quarter worth about $752,000. Tompkins Financial Corp boosted its stake in Discover Financial Services by 357.4% in the first quarter. Tompkins Financial Corp now owns 5,178 shares of the financial services provider’s stock worth $264,000 after buying an additional 4,046 shares during the last quarter. Fox Run Management L.L.C. purchased a new stake in Discover Financial Services during the first quarter worth about $789,000. BKD Wealth Advisors LLC boosted its stake in Discover Financial Services by 8.6% in the first quarter. BKD Wealth Advisors LLC now owns 5,002 shares of the financial services provider’s stock worth $342,000 after buying an additional 397 shares during the last quarter. Finally, Parametrica Management Ltd purchased a new stake in Discover Financial Services during the first quarter worth about $359,000. 84.14% of the stock is owned by hedge funds and other institutional investors.
Discover Financial Services Company Profile
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.