Discover Financial Services (NYSE:DFS) had its price objective lowered by equities research analysts at Citigroup from $78.00 to $75.00 in a research note issued on Thursday. The brokerage currently has a “neutral” rating on the financial services provider’s stock. Citigroup’s price objective would suggest a potential upside of 9.11% from the company’s previous close.
DFS has been the topic of a number of other research reports. Sandler O’Neill reaffirmed a “buy” rating and issued a $87.00 price target on shares of Discover Financial Services in a report on Friday, July 27th. Bank of America lifted their price target on shares of Discover Financial Services from $86.00 to $92.00 and gave the stock a “buy” rating in a report on Friday, September 21st. JPMorgan Chase & Co. raised shares of Discover Financial Services from a “neutral” rating to an “overweight” rating in a report on Tuesday, October 2nd. Zacks Investment Research cut shares of Discover Financial Services from a “buy” rating to a “hold” rating in a report on Tuesday, October 16th. Finally, Wells Fargo & Co lowered their price target on shares of Discover Financial Services from $82.00 to $78.00 and set a “market perform” rating on the stock in a report on Friday, October 26th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $86.80.
Shares of NYSE:DFS traded down $1.37 during mid-day trading on Thursday, reaching $68.74. The company had a trading volume of 2,324,513 shares, compared to its average volume of 2,162,936. The company has a current ratio of 1.08, a quick ratio of 1.49 and a debt-to-equity ratio of 2.54. The stock has a market capitalization of $23.87 billion, a PE ratio of 11.49, a price-to-earnings-growth ratio of 0.71 and a beta of 1.50. Discover Financial Services has a one year low of $63.31 and a one year high of $81.93.
Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Thursday, October 25th. The financial services provider reported $2.05 EPS for the quarter, hitting analysts’ consensus estimates of $2.05. The company had revenue of $2.72 billion for the quarter, compared to analysts’ expectations of $2.69 billion. Discover Financial Services had a net margin of 19.51% and a return on equity of 25.15%. Research analysts predict that Discover Financial Services will post 7.83 earnings per share for the current year.
Discover Financial Services declared that its board has authorized a share repurchase plan on Thursday, July 19th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the financial services provider to purchase up to 11.9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its shares are undervalued.
In other news, insider David W. Nelms sold 30,000 shares of the business’s stock in a transaction on Thursday, November 1st. The shares were sold at an average price of $69.81, for a total transaction of $2,094,300.00. Following the completion of the transaction, the insider now directly owns 1,150,798 shares in the company, valued at approximately $80,337,208.38. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Edward W. Mcgrogan sold 850 shares of the business’s stock in a transaction on Thursday, November 1st. The shares were sold at an average price of $70.00, for a total transaction of $59,500.00. Following the transaction, the senior vice president now owns 12,075 shares of the company’s stock, valued at $845,250. The disclosure for this sale can be found here. Insiders sold a total of 102,100 shares of company stock valued at $7,656,625 over the last quarter. 0.81% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Adirondack Trust Co. grew its position in shares of Discover Financial Services by 204.5% during the 3rd quarter. Adirondack Trust Co. now owns 1,340 shares of the financial services provider’s stock valued at $102,000 after purchasing an additional 900 shares in the last quarter. Sandy Spring Bank grew its position in shares of Discover Financial Services by 181.5% during the 2nd quarter. Sandy Spring Bank now owns 1,689 shares of the financial services provider’s stock valued at $119,000 after purchasing an additional 1,089 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. grew its position in shares of Discover Financial Services by 8,341.7% during the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,026 shares of the financial services provider’s stock valued at $143,000 after purchasing an additional 2,002 shares in the last quarter. Truvestments Capital LLC purchased a new position in shares of Discover Financial Services during the 3rd quarter valued at $163,000. Finally, Edge Wealth Management LLC purchased a new position in Discover Financial Services in the second quarter worth $155,000. Hedge funds and other institutional investors own 85.53% of the company’s stock.
About Discover Financial Services
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.
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