Discover Financial Services (NYSE:DFS) had its target price cut by Morgan Stanley from $71.00 to $70.00 in a research report issued on Friday. The firm presently has an “overweight” rating on the financial services provider’s stock. Morgan Stanley’s price objective would suggest a potential upside of 21.40% from the company’s current price.
A number of other equities research analysts have also recently issued reports on DFS. Wells Fargo & Company cut shares of Discover Financial Services to a “buy” rating and set a $70.00 price objective for the company. in a report on Friday, May 19th. Royal Bank Of Canada reiterated a “buy” rating and issued a $82.00 price objective on shares of Discover Financial Services in a report on Tuesday, May 16th. Keefe, Bruyette & Woods reiterated a “buy” rating on shares of Discover Financial Services in a report on Friday, May 12th. Jefferies Group LLC reiterated a “buy” rating and issued a $82.00 price objective on shares of Discover Financial Services in a report on Friday, May 12th. Finally, ValuEngine cut shares of Discover Financial Services from a “strong-buy” rating to a “buy” rating in a report on Friday, June 2nd. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and sixteen have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $73.95.
Discover Financial Services (DFS) traded down 0.74% on Friday, reaching $57.66. The company’s stock had a trading volume of 1,966,894 shares. The stock has a 50 day moving average price of $60.27 and a 200-day moving average price of $63.15. Discover Financial Services has a 1-year low of $53.91 and a 1-year high of $74.33. The company has a market capitalization of $21.47 billion, a price-to-earnings ratio of 9.95 and a beta of 1.45.
Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Wednesday, July 26th. The financial services provider reported $1.40 EPS for the quarter, missing the consensus estimate of $1.45 by $0.05. Discover Financial Services had a net margin of 20.91% and a return on equity of 21.28%. The company had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.40 billion. During the same quarter in the prior year, the firm earned $1.47 earnings per share. The company’s revenue was up 9.2% on a year-over-year basis. Equities analysts predict that Discover Financial Services will post $5.92 earnings per share for the current fiscal year.
Discover Financial Services declared that its Board of Directors has approved a share buyback plan on Wednesday, June 28th that authorizes the company to buyback $2.23 billion in shares. This buyback authorization authorizes the financial services provider to reacquire up to 9.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.
In related news, COO Roger C. Hochschild sold 15,258 shares of the stock in a transaction dated Friday, September 1st. The shares were sold at an average price of $59.64, for a total value of $909,987.12. Following the completion of the transaction, the chief operating officer now owns 799,741 shares of the company’s stock, valued at $47,696,553.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO David W. Nelms sold 30,000 shares of the stock in a transaction dated Monday, July 3rd. The stock was sold at an average price of $62.52, for a total transaction of $1,875,600.00. The disclosure for this sale can be found here. Insiders have sold 157,002 shares of company stock valued at $9,580,337 in the last ninety days. 0.96% of the stock is owned by company insiders.
A number of large investors have recently bought and sold shares of DFS. BlackRock Inc. raised its position in Discover Financial Services by 3,280.4% in the first quarter. BlackRock Inc. now owns 30,704,582 shares of the financial services provider’s stock worth $2,099,886,000 after purchasing an additional 29,796,268 shares in the last quarter. Diamond Hill Capital Management Inc. raised its position in Discover Financial Services by 1,458.6% in the second quarter. Diamond Hill Capital Management Inc. now owns 3,559,909 shares of the financial services provider’s stock worth $221,391,000 after purchasing an additional 3,331,498 shares in the last quarter. Hotchkis & Wiley Capital Management LLC acquired a new position in Discover Financial Services in the second quarter worth about $199,350,000. Principal Financial Group Inc. raised its position in Discover Financial Services by 492.6% in the second quarter. Principal Financial Group Inc. now owns 3,504,010 shares of the financial services provider’s stock worth $217,914,000 after purchasing an additional 2,912,742 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in Discover Financial Services by 320.9% in the second quarter. Arrowstreet Capital Limited Partnership now owns 2,672,385 shares of the financial services provider’s stock worth $166,196,000 after purchasing an additional 2,037,515 shares in the last quarter. 86.21% 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.
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