Discover Financial Services (NYSE:DFS) Earns Hold Rating from Analysts at StockNews.com

StockNews.com assumed coverage on shares of Discover Financial Services (NYSE:DFS) in a research note released on Wednesday. The firm issued a hold rating on the financial services provider’s stock.

A number of other research firms have also commented on DFS. Royal Bank of Canada raised their price target on Discover Financial Services from $140.00 to $148.00 and gave the stock a sector perform rating in a report on Friday, July 19th. JPMorgan Chase & Co. upped their price target on Discover Financial Services from $132.00 to $135.00 and gave the company a neutral rating in a research report on Friday, July 19th. BTIG Research started coverage on shares of Discover Financial Services in a report on Friday, June 7th. They issued a neutral rating on the stock. Barclays boosted their price objective on shares of Discover Financial Services from $135.00 to $137.00 and gave the company an equal weight rating in a research note on Friday, July 19th. Finally, Jefferies Financial Group increased their target price on shares of Discover Financial Services from $145.00 to $150.00 and gave the stock a buy rating in a research note on Tuesday, July 9th. Thirteen research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, Discover Financial Services presently has a consensus rating of Hold and an average target price of $132.94.

Discover Financial Services Price Performance

NYSE DFS opened at $139.25 on Wednesday. The company has a quick ratio of 1.04, a current ratio of 1.12 and a debt-to-equity ratio of 1.28. The company has a market cap of $34.92 billion, a PE ratio of 15.87, a price-to-earnings-growth ratio of 0.94 and a beta of 1.42. Discover Financial Services has a 52 week low of $79.04 and a 52 week high of $147.61. The firm’s 50-day simple moving average is $134.48 and its two-hundred day simple moving average is $129.16.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Wednesday, July 17th. The financial services provider reported $6.06 EPS for the quarter, beating analysts’ consensus estimates of $3.06 by $3.00. Discover Financial Services had a net margin of 12.88% and a return on equity of 20.92%. The company had revenue of $4.54 billion for the quarter, compared to analysts’ expectations of $4.18 billion. During the same period in the prior year, the company posted $3.54 EPS. Discover Financial Services’s revenue was up 17.0% compared to the same quarter last year. Research analysts predict that Discover Financial Services will post 12.88 earnings per share for the current year.

Discover Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 5th. Investors of record on Thursday, August 22nd were issued a dividend of $0.70 per share. The ex-dividend date was Thursday, August 22nd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.01%. Discover Financial Services’s dividend payout ratio is 31.93%.

Institutional Investors Weigh In On Discover Financial Services

A number of hedge funds have recently made changes to their positions in the business. Envestnet Asset Management Inc. boosted its holdings in Discover Financial Services by 60.9% during the 4th quarter. Envestnet Asset Management Inc. now owns 2,122,824 shares of the financial services provider’s stock valued at $238,605,000 after acquiring an additional 803,738 shares during the period. Elser Financial Planning Inc purchased a new stake in shares of Discover Financial Services during the second quarter valued at approximately $91,044,000. Magnetar Financial LLC bought a new position in shares of Discover Financial Services in the first quarter worth approximately $71,693,000. Samlyn Capital LLC increased its stake in shares of Discover Financial Services by 368.0% in the second quarter. Samlyn Capital LLC now owns 646,691 shares of the financial services provider’s stock worth $84,594,000 after buying an additional 508,504 shares during the period. Finally, Price T Rowe Associates Inc. MD raised its holdings in Discover Financial Services by 67.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,257,086 shares of the financial services provider’s stock valued at $141,297,000 after buying an additional 506,801 shares during the last quarter. 86.94% of the stock is currently owned by institutional investors.

Discover Financial Services Company Profile

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; private student loans, personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.