Analysts Set Expectations for Discover Financial Services’ FY2017 Earnings (DFS)
Discover Financial Services (NYSE:DFS) – Analysts at Oppenheimer Holdings lifted their FY2017 EPS estimates for Discover Financial Services in a research note issued to investors on Monday. Oppenheimer Holdings analyst B. Chittenden now anticipates that the financial services provider will post earnings per share of $5.93 for the year, up from their previous forecast of $5.92. Oppenheimer Holdings currently has a “Buy” rating and a $69.00 price target on the stock.
Other research analysts also recently issued reports about the company. Jefferies Group LLC reissued a “buy” rating and issued a $75.00 price objective (down from $82.00) on shares of Discover Financial Services in a research note on Thursday, July 27th. ValuEngine downgraded Discover Financial Services from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 2nd. Instinet reissued a “buy” rating and issued a $81.00 price objective (down from $86.00) on shares of Discover Financial Services in a research note on Wednesday, July 12th. Barclays PLC reissued an “equal weight” rating and issued a $70.00 price objective (down from $79.00) on shares of Discover Financial Services in a research note on Thursday, July 13th. Finally, BMO Capital Markets reissued a “hold” rating and issued a $70.00 price objective on shares of Discover Financial Services in a research note on Thursday, June 1st. Three research analysts have rated the stock with a sell rating, seven have given a hold rating and sixteen have issued a buy rating to the company. The company has an average rating of “Buy” and a consensus target price of $73.95.
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Shares of Discover Financial Services (NYSE:DFS) opened at 64.06 on Wednesday. The company has a market cap of $23.85 billion, a P/E ratio of 11.05 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 company has a 50-day moving average price of $59.72 and a 200-day moving average price of $62.41.
Discover Financial Services (NYSE:DFS) last released its quarterly earnings data 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 company had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.40 billion. Discover Financial Services had a net margin of 20.91% and a return on equity of 21.28%. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.47 EPS.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 7th. Shareholders of record on Thursday, August 24th were issued a dividend of $0.35 per share. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.30. This represents a $1.40 dividend on an annualized basis and a yield of 2.21%. The ex-dividend date was Tuesday, August 22nd. Discover Financial Services’s payout ratio is currently 24.18%.
Discover Financial Services declared that its board has initiated a stock repurchase plan on Wednesday, June 28th that allows the company to repurchase $2.23 billion in shares. This repurchase authorization allows the financial services provider to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.
In other Discover Financial Services news, SVP Edward W. Mcgrogan sold 1,228 shares of the business’s stock in a transaction that occurred on Monday, July 31st. The stock was sold at an average price of $61.06, for a total transaction of $74,981.68. Following the completion of the sale, the senior vice president now directly owns 13,085 shares of the company’s stock, valued at approximately $798,970.10. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO David W. Nelms sold 30,000 shares of the business’s stock in a transaction that occurred 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 disclosure for this sale can be found here. Insiders have sold a total of 157,002 shares of company stock valued at $9,580,337 over the last three months. Corporate insiders own 0.96% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. grew its holdings in shares of 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 valued at $2,099,886,000 after acquiring an additional 29,796,268 shares in the last quarter. Diamond Hill Capital Management Inc. grew its holdings in shares of 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 valued at $221,391,000 after acquiring an additional 3,331,498 shares in the last quarter. Hotchkis & Wiley Capital Management LLC bought a new position in shares of Discover Financial Services in the second quarter valued at approximately $199,350,000. Principal Financial Group Inc. grew its holdings in shares of 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 valued at $217,914,000 after acquiring an additional 2,912,742 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of Discover Financial Services by 320.9% in the second quarter. Arrowstreet Capital Limited Partnership now owns 2,672,385 shares of the financial services provider’s stock valued at $166,196,000 after acquiring an additional 2,037,515 shares in the last quarter. 85.45% of the stock is owned by hedge funds and other institutional investors.
Discover Financial Services Company Profile
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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