Discover Financial Services (NYSE:DFS) – William Blair decreased their Q3 2017 earnings per share (EPS) estimates for shares of Discover Financial Services in a research report issued to clients and investors on Tuesday. William Blair analyst R. Napoli now anticipates that the financial services provider will earn $1.56 per share for the quarter, down from their prior forecast of $1.58. William Blair has a “Outperform” rating on the stock.

Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, July 26th. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 business had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same quarter in the previous year, the company posted $1.47 earnings per share. The business’s revenue for the quarter was up 9.2% on a year-over-year basis.

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A number of other brokerages have also issued reports on DFS. Zacks Investment Research lowered shares of Discover Financial Services from a “hold” rating to a “sell” rating in a research note on Monday, July 31st. Instinet reiterated a “buy” rating and set a $81.00 price target (down from $86.00) on shares of Discover Financial Services in a research note on Wednesday, July 12th. Jefferies Group LLC reiterated a “buy” rating and set a $75.00 price target (down from $82.00) on shares of Discover Financial Services in a research note on Thursday, July 27th. BidaskClub lowered shares of Discover Financial Services from a “hold” rating to a “sell” rating in a research note on Tuesday, August 1st. Finally, Morgan Stanley reiterated an “overweight” rating and set a $75.00 price target (down from $81.00) on shares of Discover Financial Services in a research note on Thursday, July 6th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and fifteen have given a buy rating to the company. The stock has an average rating of “Buy” and an average target price of $73.95.

Discover Financial Services (DFS) opened at 59.43 on Friday. The firm’s 50-day moving average is $59.74 and its 200-day moving average is $62.70. Discover Financial Services has a 52-week low of $53.91 and a 52-week high of $74.33. The firm has a market capitalization of $22.13 billion, a P/E ratio of 10.25 and a beta of 1.45.

Institutional investors and hedge funds have recently made changes to their positions in the stock. V Wealth Management LLC purchased a new position in shares of Discover Financial Services during the second quarter valued at approximately $101,000. FNY Managed Accounts LLC purchased a new position in shares of Discover Financial Services during the first quarter valued at approximately $124,000. Orrstown Financial Services Inc. lifted its stake in shares of Discover Financial Services by 16.7% during the second quarter. Orrstown Financial Services Inc. now owns 2,002 shares of the financial services provider’s stock valued at $125,000 after buying an additional 286 shares during the period. Perigon Wealth Management LLC lifted its stake in shares of Discover Financial Services by 2.3% during the first quarter. Perigon Wealth Management LLC now owns 2,146 shares of the financial services provider’s stock valued at $147,000 after buying an additional 48 shares during the period. Finally, Chicago Partners Investment Group LLC purchased a new position in shares of Discover Financial Services during the second quarter valued at approximately $168,000. 86.21% of the stock is currently owned by institutional investors and hedge funds.

In related news, CEO David W. Nelms sold 30,000 shares of the company’s stock in a transaction that occurred on Monday, July 3rd. The shares were sold at an average price of $62.52, for a total transaction of $1,875,600.00. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Carlos Minetti sold 8,000 shares of the company’s stock in a transaction that occurred on Monday, July 3rd. The shares were sold at an average price of $62.42, for a total transaction of $499,360.00. Following the transaction, the executive vice president now directly owns 205,149 shares in the company, valued at approximately $12,805,400.58. The disclosure for this sale can be found here. Insiders have sold 157,002 shares of company stock worth $9,580,337 in the last three months. Insiders own 0.96% of the company’s stock.

The company also recently disclosed 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. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.30. The ex-dividend date was Tuesday, August 22nd. This represents a $1.40 annualized dividend and a dividend yield of 2.36%. Discover Financial Services’s dividend payout ratio is presently 24.18%.

Discover Financial Services declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, June 28th that permits the company to buyback $2.23 billion in outstanding 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 board believes its stock is undervalued.

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.

Earnings History and Estimates for Discover Financial Services (NYSE:DFS)

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