Discover Financial Services (NYSE:DFS) Sets New 1-Year High – Time to Buy?

Shares of Discover Financial Services (NYSE:DFS) hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $205.76 and last traded at $204.72, with a volume of 306886 shares trading hands. The stock had previously closed at $201.03.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. StockNews.com downgraded Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Friday, January 24th. Royal Bank of Canada boosted their target price on shares of Discover Financial Services from $193.00 to $210.00 and gave the company a “sector perform” rating in a research report on Friday, January 24th. UBS Group upgraded Discover Financial Services from a “neutral” rating to a “buy” rating and lifted their price target for the company from $150.00 to $239.00 in a research note on Monday, January 13th. JPMorgan Chase & Co. upped their price objective on Discover Financial Services from $146.00 to $169.00 and gave the stock a “neutral” rating in a research report on Friday, January 24th. Finally, Truist Financial lifted their target price on Discover Financial Services from $233.00 to $262.00 and gave the company a “buy” rating in a research report on Monday. Ten equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $182.64.

Discover Financial Services Stock Performance

The company has a 50-day moving average of $180.47 and a 200-day moving average of $156.15. The firm has a market capitalization of $50.87 billion, a P/E ratio of 12.68, a price-to-earnings-growth ratio of 1.15 and a beta of 1.46. The company has a current ratio of 1.10, a quick ratio of 1.03 and a debt-to-equity ratio of 1.09.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 EPS for the quarter, topping analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a return on equity of 27.52% and a net margin of 17.29%. On average, equities analysts anticipate that Discover Financial Services will post 12.82 earnings per share for the current fiscal year.

Discover Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date of this dividend is Friday, May 23rd. This represents a $2.80 dividend on an annualized basis and a yield of 1.38%. Discover Financial Services’s payout ratio is currently 17.54%.

Institutional Investors Weigh In On Discover Financial Services

A number of hedge funds have recently added to or reduced their stakes in the business. Hemington Wealth Management grew its position in shares of Discover Financial Services by 11.0% during the 4th quarter. Hemington Wealth Management now owns 503 shares of the financial services provider’s stock worth $87,000 after buying an additional 50 shares during the period. UMB Bank n.a. boosted its stake in Discover Financial Services by 0.6% during the fourth quarter. UMB Bank n.a. now owns 9,248 shares of the financial services provider’s stock worth $1,602,000 after acquiring an additional 56 shares in the last quarter. Stratos Wealth Partners LTD. grew its holdings in Discover Financial Services by 0.9% in the fourth quarter. Stratos Wealth Partners LTD. now owns 6,158 shares of the financial services provider’s stock worth $1,067,000 after purchasing an additional 57 shares during the period. Invst LLC increased its stake in Discover Financial Services by 0.9% in the third quarter. Invst LLC now owns 7,253 shares of the financial services provider’s stock valued at $1,018,000 after purchasing an additional 62 shares in the last quarter. Finally, CTC Alternative Strategies Ltd. raised its holdings in shares of Discover Financial Services by 3.2% during the third quarter. CTC Alternative Strategies Ltd. now owns 2,047 shares of the financial services provider’s stock valued at $287,000 after purchasing an additional 63 shares during the period. 86.94% of the stock is currently owned by institutional investors.

Discover Financial Services Company Profile

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.