Municipal Employees Retirement System of Michigan decreased its position in shares of Discover Financial Services (NYSE:DFS) by 46.1% during the second quarter, Holdings Channel reports. The institutional investor owned 12,970 shares of the financial services provider’s stock after selling 11,080 shares during the period. Municipal Employees Retirement System of Michigan’s holdings in Discover Financial Services were worth $807,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Bank of Nova Scotia increased its stake in shares of Discover Financial Services by 171.5% in the first quarter. Bank of Nova Scotia now owns 88,397 shares of the financial services provider’s stock valued at $6,045,000 after buying an additional 55,840 shares during the last quarter. Pacer Advisors Inc. increased its stake in shares of Discover Financial Services by 3.2% in the first quarter. Pacer Advisors Inc. now owns 8,406 shares of the financial services provider’s stock valued at $575,000 after buying an additional 264 shares during the last quarter. Quantitative Investment Management LLC acquired a new stake in shares of Discover Financial Services during the first quarter valued at $868,000. Edge Asset Management Inc. increased its stake in shares of Discover Financial Services by 2.7% in the first quarter. Edge Asset Management Inc. now owns 2,561,054 shares of the financial services provider’s stock valued at $175,151,000 after buying an additional 67,475 shares during the last quarter. Finally, Lingohr & Partner Asset Management GmbH increased its stake in shares of Discover Financial Services by 0.8% in the first quarter. Lingohr & Partner Asset Management GmbH now owns 12,100 shares of the financial services provider’s stock valued at $828,000 after buying an additional 100 shares during the last quarter. 86.20% of the stock is currently owned by institutional investors and hedge funds.

Shares of Discover Financial Services (NYSE DFS) opened at 60.50 on Tuesday. Discover Financial Services has a 1-year low of $53.91 and a 1-year high of $74.33. The firm has a market capitalization of $22.53 billion, a PE ratio of 10.44 and a beta of 1.46. The stock has a 50 day moving average price of $61.29 and a 200 day moving average price of $64.38.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Wednesday, July 26th. The financial services provider reported $1.40 EPS for the quarter, missing the Zacks’ 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 firm had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.40 billion. During the same quarter in the previous year, the company posted $1.47 earnings per share. The firm’s revenue was up 9.2% on a year-over-year basis. Equities research analysts anticipate that Discover Financial Services will post $5.93 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 7th. Stockholders of record on Thursday, August 24th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.31%. 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. Discover Financial Services’s dividend payout ratio is presently 20.73%.

Discover Financial Services announced that its board has authorized a share buyback plan on Wednesday, June 28th that authorizes the company to repurchase $2.23 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 9.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

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DFS has been the subject of several recent analyst reports. Instinet restated a “buy” rating and set a $86.00 target price (down previously from $88.00) on shares of Discover Financial Services in a research note on Saturday, April 29th. Wells Fargo & Company restated an “outperform” rating and set a $70.00 target price (down previously from $80.00) on shares of Discover Financial Services in a research note on Sunday, May 21st. ValuEngine downgraded Discover Financial Services from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 2nd. Deutsche Bank AG downgraded Discover Financial Services from a “buy” rating to a “hold” rating and decreased their target price for the company from $87.00 to $71.00 in a research note on Monday, May 1st. Finally, Morgan Stanley restated an “overweight” rating and set a $75.00 target price (down previously from $81.00) on shares of Discover Financial Services in a research note on Thursday, July 6th. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and seventeen have issued a buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $74.21.

In related news, CEO David W. Nelms sold 30,000 shares of the stock in a transaction on Monday, July 3rd. The stock was sold at an average price of $62.52, for a total value of $1,875,600.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Roger C. Hochschild sold 15,258 shares of the 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 owns 814,999 shares of the company’s stock, valued at $49,747,538.96. The disclosure for this sale can be found here. Insiders sold a total of 107,744 shares of company stock valued at $6,658,830 over the last quarter. 0.96% of the stock is owned by corporate insiders.

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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Institutional Ownership by Quarter for Discover Financial Services (NYSE:DFS)

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