Fmr LLC reduced its stake in Discover Financial Services (NYSE:DFS) by 21.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 11,126,352 shares of the financial services provider’s stock after selling 3,127,225 shares during the quarter. Fmr LLC’s holdings in Discover Financial Services were worth $783,407,000 at the end of the most recent reporting period.

Other institutional investors also recently added to or reduced their stakes in the company. Bbva Compass Bancshares Inc. raised its holdings in Discover Financial Services by 13.5% in the 1st quarter. Bbva Compass Bancshares Inc. now owns 99,494 shares of the financial services provider’s stock valued at $7,157,000 after acquiring an additional 11,810 shares during the period. Piedmont Investment Advisors LLC raised its holdings in Discover Financial Services by 19.8% in the 2nd quarter. Piedmont Investment Advisors LLC now owns 53,782 shares of the financial services provider’s stock valued at $3,787,000 after acquiring an additional 8,873 shares during the period. Victory Capital Management Inc. grew its position in shares of Discover Financial Services by 11.5% during the 2nd quarter. Victory Capital Management Inc. now owns 49,836 shares of the financial services provider’s stock worth $3,509,000 after purchasing an additional 5,124 shares in the last quarter. Seven Eight Capital LP acquired a new position in shares of Discover Financial Services during the 1st quarter worth approximately $303,000. Finally, Cubist Systematic Strategies LLC grew its position in shares of Discover Financial Services by 21.1% during the 1st quarter. Cubist Systematic Strategies LLC now owns 26,498 shares of the financial services provider’s stock worth $1,906,000 after purchasing an additional 4,612 shares in the last quarter. 85.78% of the stock is currently owned by hedge funds and other institutional investors.

NYSE DFS opened at $77.85 on Friday. The company has a current ratio of 1.49, a quick ratio of 1.49 and a debt-to-equity ratio of 2.54. The company has a market cap of $26.90 billion, a P/E ratio of 11.43, a PEG ratio of 0.92 and a beta of 1.49. Discover Financial Services has a 1 year low of $57.50 and a 1 year high of $81.93.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Thursday, July 26th. The financial services provider reported $1.91 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.88 by $0.03. The business had revenue of $2.60 billion for the quarter, compared to analyst estimates of $2.63 billion. Discover Financial Services had a net margin of 19.07% and a return on equity of 24.25%. The firm’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same quarter last year, the business posted $1.40 EPS. equities analysts expect that Discover Financial Services will post 7.81 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 6th. Investors of record on Thursday, August 23rd will be given a dividend of $0.40 per share. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.35. The ex-dividend date is Wednesday, August 22nd. This represents a $1.60 annualized dividend and a dividend yield of 2.06%. Discover Financial Services’s dividend payout ratio (DPR) is currently 26.76%.

Discover Financial Services announced that its board has initiated a stock buyback program on Thursday, July 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 11.9% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

A number of research analysts have issued reports on DFS shares. JPMorgan Chase & Co. increased their target price on shares of Discover Financial Services from $78.00 to $81.00 and gave the stock a “neutral” rating in a research report on Friday, July 27th. Zacks Investment Research upgraded shares of Discover Financial Services from a “hold” rating to a “buy” rating and set a $80.00 target price on the stock in a research report on Tuesday, July 3rd. Sandler O’Neill restated a “buy” rating and set a $87.00 target price on shares of Discover Financial Services in a research report on Friday, July 27th. Finally, UBS Group upgraded shares of Discover Financial Services from a “sell” rating to a “neutral” rating and set a $81.93 target price on the stock in a research report on Monday, May 7th. Nine investment analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus target price of $85.27.

In related news, CEO David W. Nelms sold 30,000 shares of the stock in a transaction that occurred on Monday, July 2nd. The shares were sold at an average price of $69.93, for a total transaction of $2,097,900.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction that occurred on Wednesday, August 1st. The stock was sold at an average price of $71.60, for a total transaction of $268,500.00. Following the sale, the executive vice president now owns 137,602 shares in the company, valued at approximately $9,852,303.20. The disclosure for this sale can be found here. Insiders have sold a total of 67,500 shares of company stock worth $4,782,225 in the last quarter. 0.81% of the stock is currently owned by company insiders.

Discover Financial Services Company Profile

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.

Further Reading: Tariff

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Institutional Ownership by Quarter for Discover Financial Services (NYSE:DFS)

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