Discover Financial Services (NYSE:DFS) – Investment analysts at William Blair lifted their Q2 2018 earnings estimates for Discover Financial Services in a report issued on Wednesday, Zacks Investment Research reports. William Blair analyst R. Napoli now forecasts that the financial services provider will post earnings of $1.59 per share for the quarter, up from their previous estimate of $1.58. William Blair has a “Outperform” rating on the stock. William Blair also issued estimates for Discover Financial Services’ Q4 2018 earnings at $1.73 EPS.
A number of other equities analysts have also commented on the company. Royal Bank Of Canada reiterated a “buy” rating and issued a $86.00 price objective on shares of Discover Financial Services in a research note on Wednesday, October 25th. Barclays PLC set a $73.00 price objective on Discover Financial Services and gave the stock a “hold” rating in a research note on Wednesday, October 25th. BMO Capital Markets lowered their price target on Discover Financial Services from $69.00 to $67.00 and set a “market perform” rating on the stock in a research note on Wednesday, October 25th. Bank of America Corporation boosted their price target on Discover Financial Services from $67.00 to $69.00 and gave the company a “neutral” rating in a research note on Wednesday, October 25th. Finally, Nomura lowered their price target on Discover Financial Services from $81.00 to $79.00 and set a “buy” rating on the stock in a research note on Wednesday, October 25th. Three investment analysts have rated the stock with a sell rating, nine have issued a hold rating and sixteen have assigned a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $74.45.
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Shares of Discover Financial Services (NYSE:DFS) opened at $64.76 on Thursday. Discover Financial Services has a 12-month low of $57.50 and a 12-month high of $74.33. The firm has a market capitalization of $23,532.55, a PE ratio of 11.13, a price-to-earnings-growth ratio of 1.71 and a beta of 1.52. The company has a debt-to-equity ratio of 2.52, a current ratio of 1.55 and a quick ratio of 1.55.
Discover Financial Services declared that its Board of Directors has approved a stock buyback program on Tuesday, July 25th that allows the company to buyback $2.75 billion in outstanding shares. This buyback authorization allows the financial services provider to purchase up to 11.3% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.
The company also recently announced a quarterly dividend, which will be paid on Thursday, December 7th. Investors of record on Wednesday, November 22nd will be paid a $0.35 dividend. The ex-dividend date is Tuesday, November 21st. This represents a $1.40 annualized dividend and a yield of 2.16%. Discover Financial Services’s dividend payout ratio (DPR) is currently 24.05%.
In other Discover Financial Services news, EVP Kathryn Mcnamara Corley sold 4,000 shares of the firm’s stock in a transaction that occurred on Friday, September 1st. The shares were sold at an average price of $59.63, for a total transaction of $238,520.00. Following the completion of the sale, the executive vice president now directly owns 150,744 shares in the company, valued at $8,988,864.72. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Roger C. Hochschild sold 15,258 shares of the firm’s stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $59.64, for a total transaction of $909,987.12. Following the sale, the chief operating officer now owns 799,741 shares of the company’s stock, valued at $47,696,553.24. 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 over the last quarter. 0.96% of the stock is currently owned by company insiders.
Hedge funds have recently modified their holdings of the business. Prudential Financial Inc. lifted its position in Discover Financial Services by 6.5% during the second quarter. Prudential Financial Inc. now owns 921,150 shares of the financial services provider’s stock worth $57,286,000 after acquiring an additional 56,046 shares during the last quarter. Calamos Advisors LLC increased its holdings in shares of Discover Financial Services by 120.3% during the second quarter. Calamos Advisors LLC now owns 634,391 shares of the financial services provider’s stock worth $39,453,000 after purchasing an additional 346,406 shares during the period. Annex Advisory Services LLC increased its holdings in shares of Discover Financial Services by 23.9% during the second quarter. Annex Advisory Services LLC now owns 15,686 shares of the financial services provider’s stock worth $975,000 after purchasing an additional 3,027 shares during the period. Bank of Nova Scotia increased its holdings in shares of Discover Financial Services by 171.5% during the first quarter. Bank of Nova Scotia now owns 88,397 shares of the financial services provider’s stock worth $6,045,000 after purchasing an additional 55,840 shares during the period. Finally, NorthCoast Asset Management LLC bought a new position in shares of Discover Financial Services during the second quarter worth approximately $1,535,000. Hedge funds and other institutional investors own 87.86% of the company’s stock.
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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