Discover Financial Services (DFS) Receives Average Rating of “Hold” from Analysts
Discover Financial Services (NYSE:DFS) has earned a consensus rating of “Hold” from the twenty-eight analysts that are covering the company, MarketBeat.com reports. Three investment analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation and sixteen have given a buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $73.95.
Several equities research analysts have weighed in on DFS shares. Zacks Investment Research raised Discover Financial Services from a “sell” rating to a “hold” rating in a research report on Tuesday, August 29th. Morgan Stanley dropped their target price on Discover Financial Services from $71.00 to $70.00 and set an “overweight” rating on the stock in a research report on Friday, September 8th. BMO Capital Markets dropped their target price on Discover Financial Services from $69.00 to $67.00 and set a “market perform” rating on the stock in a research report on Wednesday, October 25th. William Blair reaffirmed an “outperform” rating on shares of Discover Financial Services in a research report on Tuesday, July 18th. Finally, Bank of America Corporation increased their target price on Discover Financial Services from $67.00 to $69.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 25th.
Shares of Discover Financial Services (NYSE:DFS) traded down $0.71 during midday trading on Monday, reaching $64.76. The company’s stock had a trading volume of 1,630,800 shares, compared to its average volume of 2,670,307. Discover Financial Services has a 1 year low of $57.50 and a 1 year high of $74.33. The company has a debt-to-equity ratio of 2.52, a current ratio of 1.55 and a quick ratio of 1.55. The firm has a market capitalization of $23,532.53, a price-to-earnings ratio of 11.13, a PEG ratio of 1.71 and a beta of 1.52.
Discover Financial Services declared that its board has authorized a share buyback plan on Tuesday, July 25th that authorizes the company to repurchase $2.75 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 11.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.
The business also recently declared a quarterly dividend, which will be paid on Thursday, December 7th. Investors of record on Wednesday, November 22nd will be given a $0.35 dividend. The ex-dividend date of this dividend is Tuesday, November 21st. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.16%. Discover Financial Services’s dividend payout ratio (DPR) is 24.05%.
In related news, EVP Carlos Minetti sold 8,000 shares of the stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $66.68, for a total value of $533,440.00. Following the completion of the transaction, the executive vice president now owns 173,149 shares in the company, valued at approximately $11,545,575.32. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO David W. Nelms sold 30,000 shares of the 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 completion of the transaction, the chief executive officer now 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 sold a total of 172,277 shares of company stock valued at $11,020,650 in the last quarter. 0.96% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in DFS. Diamond Hill Capital Management Inc. boosted its position in Discover Financial Services by 97.6% during the 3rd quarter. Diamond Hill Capital Management Inc. now owns 7,035,035 shares of the financial services provider’s stock worth $453,619,000 after acquiring an additional 3,475,126 shares during the period. Hotchkis & Wiley Capital Management LLC acquired a new stake in Discover Financial Services during the 2nd quarter worth about $199,350,000. Principal Financial Group Inc. boosted its position in Discover Financial Services by 492.6% during the 2nd 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 period. Arrowstreet Capital Limited Partnership boosted its position in Discover Financial Services by 320.9% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,672,385 shares of the financial services provider’s stock worth $166,196,000 after acquiring an additional 2,037,515 shares during the period. Finally, Capital World Investors boosted its position in Discover Financial Services by 18.3% during the 2nd quarter. Capital World Investors now owns 10,578,342 shares of the financial services provider’s stock worth $657,867,000 after acquiring an additional 1,638,334 shares during the period. Hedge funds and other institutional investors own 88.02% 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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