StockNews.com Begins Coverage on Discover Financial Services (NYSE:DFS)

StockNews.com assumed coverage on shares of Discover Financial Services (NYSE:DFS) in a research report released on Thursday. The brokerage issued a hold rating on the financial services provider’s stock.

DFS has been the topic of several other research reports. Barclays boosted their target price on Discover Financial Services from $135.00 to $137.00 and gave the stock an equal weight rating in a research report on Friday, July 19th. BTIG Research assumed coverage on Discover Financial Services in a research report on Friday, June 7th. They issued a neutral rating for the company. Royal Bank of Canada boosted their target price on shares of Discover Financial Services from $140.00 to $148.00 and gave the stock a sector perform rating in a research report on Friday, July 19th. BMO Capital Markets increased their price target on shares of Discover Financial Services from $115.00 to $119.00 and gave the company a market perform rating in a report on Friday, July 19th. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Discover Financial Services from $145.00 to $160.00 and gave the company an outperform rating in a research note on Monday, July 8th. Thirteen research analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Discover Financial Services presently has a consensus rating of Hold and an average target price of $132.94.

Discover Financial Services Price Performance

Discover Financial Services stock opened at $144.89 on Thursday. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.12 and a quick ratio of 1.04. The stock has a market capitalization of $36.34 billion, a PE ratio of 16.52, a price-to-earnings-growth ratio of 0.94 and a beta of 1.41. The business has a 50 day simple moving average of $134.32 and a 200-day simple moving average of $129.81. Discover Financial Services has a 12 month low of $79.04 and a 12 month high of $147.61.

Discover Financial Services (NYSE:DFS) last issued its earnings results on Wednesday, July 17th. The financial services provider reported $6.06 earnings per share for the quarter, beating the consensus estimate of $3.06 by $3.00. The business had revenue of $4.54 billion for the quarter, compared to the consensus estimate of $4.18 billion. Discover Financial Services had a net margin of 12.88% and a return on equity of 20.92%. The business’s quarterly revenue was up 17.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.54 earnings per share. Equities analysts predict that Discover Financial Services will post 12.88 earnings per share for the current year.

Discover Financial Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were issued a $0.70 dividend. The ex-dividend date was Thursday, August 22nd. This represents a $2.80 dividend on an annualized basis and a yield of 1.93%. Discover Financial Services’s dividend payout ratio (DPR) is 31.93%.

Institutional Investors Weigh In On Discover Financial Services

A number of hedge funds and other institutional investors have recently modified their holdings of DFS. Handelsbanken Fonder AB boosted its position in Discover Financial Services by 4.5% during the third quarter. Handelsbanken Fonder AB now owns 73,845 shares of the financial services provider’s stock worth $10,360,000 after acquiring an additional 3,204 shares during the last quarter. Eldred Rock Partners LLC lifted its stake in shares of Discover Financial Services by 4.3% during the 3rd quarter. Eldred Rock Partners LLC now owns 80,044 shares of the financial services provider’s stock worth $11,229,000 after purchasing an additional 3,290 shares during the period. Park Avenue Securities LLC boosted its holdings in shares of Discover Financial Services by 13.9% during the third quarter. Park Avenue Securities LLC now owns 45,225 shares of the financial services provider’s stock worth $6,345,000 after purchasing an additional 5,515 shares during the last quarter. Czech National Bank grew its position in shares of Discover Financial Services by 7.1% in the third quarter. Czech National Bank now owns 51,146 shares of the financial services provider’s stock valued at $7,175,000 after purchasing an additional 3,392 shares during the period. Finally, University of Texas Texas AM Investment Management Co. increased its stake in Discover Financial Services by 1,973.4% in the second quarter. University of Texas Texas AM Investment Management Co. now owns 12,026 shares of the financial services provider’s stock valued at $1,573,000 after purchasing an additional 11,446 shares during the last quarter. 86.94% of the stock is currently owned by hedge funds and other 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; private student loans, 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.