Seven Eight Capital LP Purchases 92,100 Shares of Discover Financial Services (DFS)
Seven Eight Capital LP raised its position in Discover Financial Services (NYSE:DFS) by 14,878.8% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 92,719 shares of the financial services provider’s stock after acquiring an additional 92,100 shares during the quarter. Discover Financial Services makes up about 0.8% of Seven Eight Capital LP’s holdings, making the stock its 20th biggest holding. Seven Eight Capital LP’s holdings in Discover Financial Services were worth $5,766,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently modified their holdings of DFS. BlackRock Inc. lifted its stake 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 acquiring an additional 29,796,268 shares during the last quarter. Diamond Hill Capital Management Inc. lifted its stake 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 acquiring an additional 3,331,498 shares during the last quarter. Principal Financial Group Inc. lifted its stake 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 acquiring an additional 2,912,742 shares during the last quarter. Primecap Management Co. CA lifted its stake in Discover Financial Services by 19.5% in the first quarter. Primecap Management Co. CA now owns 6,681,700 shares of the financial services provider’s stock worth $456,961,000 after acquiring an additional 1,088,500 shares during the last quarter. Finally, AQR Capital Management LLC lifted its stake in Discover Financial Services by 42.9% in the first quarter. AQR Capital Management LLC now owns 3,539,440 shares of the financial services provider’s stock worth $242,063,000 after acquiring an additional 1,062,007 shares during the last quarter. Institutional investors own 86.21% of the company’s stock.
Discover Financial Services (NYSE DFS) traded down 0.72% during midday trading on Tuesday, hitting $57.77. 1,309,136 shares of the company traded hands. The stock has a market cap of $21.51 billion, a P/E ratio of 9.97 and a beta of 1.45. Discover Financial Services has a 12-month low of $53.91 and a 12-month high of $74.33. The stock has a 50 day moving average of $60.21 and a 200 day moving average of $62.97.
Discover Financial Services (NYSE:DFS) last issued its quarterly 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). The business had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.40 billion. Discover Financial Services had a net margin of 20.91% and a return on equity of 21.28%. Discover Financial Services’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same period last year, the business posted $1.47 earnings per share. Equities research analysts predict that Discover Financial Services will post $5.92 EPS for the current fiscal year.
Discover Financial Services declared that its Board of Directors has authorized a stock buyback plan on Wednesday, June 28th that permits the company to buyback $2.23 billion in shares. This buyback authorization permits 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 leadership believes its stock is undervalued.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 7th. Investors of record on Thursday, August 24th were paid a dividend of $0.35 per share. The ex-dividend date of this dividend was Tuesday, August 22nd. This represents a $1.40 annualized dividend and a yield of 2.41%. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.30. Discover Financial Services’s dividend payout ratio (DPR) is currently 24.18%.
A number of research analysts recently issued reports on the stock. ValuEngine downgraded shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research note on Monday. Barclays PLC reissued an “equal weight” rating and set a $70.00 price objective (down previously from $79.00) on shares of Discover Financial Services in a report on Thursday, July 13th. Oppenheimer Holdings, Inc. set a $69.00 price objective on shares of Discover Financial Services and gave the stock a “buy” rating in a report on Wednesday, July 26th. Morgan Stanley cut their price objective on shares of Discover Financial Services from $71.00 to $70.00 and set an “overweight” rating on the stock in a report on Friday. Finally, Zacks Investment Research cut shares of Discover Financial Services from a “hold” rating to a “sell” rating in a report on Monday, July 31st. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and fifteen have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $73.95.
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In related news, COO Roger C. Hochschild sold 15,258 shares of the firm’s stock in a transaction dated Monday, July 3rd. The stock was sold at an average price of $62.48, for a total transaction of $953,319.84. Following the completion of the transaction, the chief operating officer now owns 830,257 shares of the company’s stock, valued at $51,874,457.36. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO David W. Nelms sold 30,000 shares of the firm’s stock in a transaction dated 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 directly owns 1,529,912 shares of the company’s stock, valued at approximately $90,417,799.20. 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. Company insiders own 0.96% 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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