Discover Financial Services (DFS) Price Target Lowered to $70.00 at Morgan Stanley
Discover Financial Services (NYSE:DFS) had its price target reduced by Morgan Stanley from $71.00 to $70.00 in a report published on Friday. They currently have an overweight rating on the financial services provider’s stock.
DFS has been the topic of a number of other research reports. BidaskClub raised Discover Financial Services from a sell rating to a hold rating in a report on Tuesday, June 20th. Royal Bank Of Canada reaffirmed a buy rating and set a $82.00 target price on shares of Discover Financial Services in a report on Tuesday, May 16th. Oppenheimer Holdings, Inc. set a $69.00 target price on Discover Financial Services and gave the stock a buy rating in a report on Wednesday, July 26th. Barclays PLC reaffirmed an equal weight rating and set a $70.00 target price (down previously from $79.00) on shares of Discover Financial Services in a report on Thursday, July 13th. Finally, Zacks Investment Research raised Discover Financial Services from a sell rating to a hold rating in a report on Tuesday, August 29th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and sixteen have issued a buy rating to the company. The stock currently has a consensus rating of Buy and an average price target of $73.95.
Discover Financial Services (NYSE:DFS) traded down 0.74% on Friday, reaching $57.66. The company’s stock had a trading volume of 1,966,894 shares. The company has a market capitalization of $21.47 billion, a price-to-earnings ratio of 9.95 and a beta of 1.45. The firm’s 50 day moving average price is $60.27 and its 200-day moving average price is $63.15. Discover Financial Services has a 52 week low of $53.91 and a 52 week high of $74.33.
Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, July 26th. The financial services provider reported $1.40 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by $0.05. Discover Financial Services had a return on equity of 21.28% and a net margin of 20.91%. The firm had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same period in the prior year, the business earned $1.47 EPS. The company’s quarterly revenue was up 9.2% on a year-over-year basis. On average, equities analysts predict that Discover Financial Services will post $5.92 EPS for the current year.
Discover Financial Services announced that its board has approved a stock repurchase plan on Wednesday, June 28th that allows the company to repurchase $2.23 billion in outstanding shares. This repurchase authorization allows the financial services provider to repurchase up to 9.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 7th. Investors of record on Thursday, August 24th were given a $0.35 dividend. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a yield of 2.43%. The ex-dividend date was Tuesday, August 22nd. Discover Financial Services’s dividend payout ratio (DPR) is currently 24.18%.
In other news, COO Roger C. Hochschild sold 15,258 shares of Discover Financial Services stock in a transaction on Friday, September 1st. The stock was sold at an average price of $59.64, for a total transaction of $909,987.12. Following the transaction, the chief operating officer now directly owns 799,741 shares in the company, valued at approximately $47,696,553.24. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO David W. Nelms sold 30,000 shares of Discover Financial Services stock in a transaction on Friday, September 1st. The shares were sold at an average price of $59.10, for a total value of $1,773,000.00. Following the transaction, the chief executive officer now owns 1,529,912 shares in the company, valued at $90,417,799.20. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 157,002 shares of company stock worth $9,580,337. 0.96% of the stock is owned by insiders.
Hedge funds have recently modified their holdings of the company. V Wealth Management LLC acquired a new position in shares of Discover Financial Services during the 2nd quarter valued at $101,000. FNY Managed Accounts LLC acquired a new position in shares of Discover Financial Services during the 1st quarter valued at $124,000. Orrstown Financial Services Inc. increased its position in shares of Discover Financial Services by 16.7% during the 2nd quarter. Orrstown Financial Services Inc. now owns 2,002 shares of the financial services provider’s stock valued at $125,000 after purchasing an additional 286 shares during the period. Perigon Wealth Management LLC increased its position in shares of Discover Financial Services by 2.3% during the 1st quarter. Perigon Wealth Management LLC now owns 2,146 shares of the financial services provider’s stock valued at $147,000 after purchasing an additional 48 shares during the period. Finally, Chicago Partners Investment Group LLC acquired a new position in shares of Discover Financial Services during the 2nd quarter valued at $168,000. Institutional investors own 86.21% of the company’s stock.
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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