Royal Bank of Canada Forecasts Strong Price Appreciation for Discover Financial Services (NYSE:DFS) Stock

Discover Financial Services (NYSE:DFS) had its price objective lifted by research analysts at Royal Bank of Canada from $193.00 to $210.00 in a report issued on Friday,Benzinga reports. The brokerage currently has a “sector perform” rating on the financial services provider’s stock. Royal Bank of Canada’s price objective points to a potential upside of 4.16% from the company’s current price.

Other equities research analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. raised their target price on shares of Discover Financial Services from $146.00 to $169.00 and gave the stock a “neutral” rating in a research note on Friday. Barclays raised their target price on shares of Discover Financial Services from $186.00 to $209.00 and gave the stock an “overweight” rating in a research note on Friday. Wells Fargo & Company raised their target price on shares of Discover Financial Services from $185.00 to $214.00 and gave the stock an “equal weight” rating in a research note on Friday. UBS Group upgraded shares of Discover Financial Services from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $150.00 to $239.00 in a research report on Monday, January 13th. Finally, Keefe, Bruyette & Woods lifted their price objective on shares of Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a research report on Monday, December 9th. Ten research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $180.57.

Discover Financial Services Stock Performance

Shares of DFS traded up $0.64 on Friday, reaching $201.60. The company’s stock had a trading volume of 740,543 shares, compared to its average volume of 1,514,864. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.10 and a quick ratio of 1.03. The stock has a market capitalization of $50.67 billion, a P/E ratio of 12.63, a PEG ratio of 1.15 and a beta of 1.46. The stock’s 50 day simple moving average is $178.30 and its two-hundred day simple moving average is $154.01. Discover Financial Services has a 12-month low of $101.71 and a 12-month high of $204.93.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 27.52%. Research analysts forecast that Discover Financial Services will post 12.82 earnings per share for the current fiscal year.

Institutional Trading of Discover Financial Services

A number of large investors have recently made changes to their positions in the stock. DiNuzzo Private Wealth Inc. raised its holdings in Discover Financial Services by 506.5% in the third quarter. DiNuzzo Private Wealth Inc. now owns 188 shares of the financial services provider’s stock worth $26,000 after purchasing an additional 157 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. bought a new position in Discover Financial Services in the third quarter worth about $30,000. Grove Bank & Trust raised its holdings in Discover Financial Services by 78.1% in the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock worth $35,000 after purchasing an additional 89 shares in the last quarter. Hantz Financial Services Inc. bought a new position in Discover Financial Services in the fourth quarter worth about $37,000. Finally, Pinnacle Bancorp Inc. increased its holdings in shares of Discover Financial Services by 37.1% during the third quarter. Pinnacle Bancorp Inc. now owns 292 shares of the financial services provider’s stock valued at $41,000 after acquiring an additional 79 shares in the last quarter. 86.94% of the stock is owned by hedge funds and other institutional investors.

About Discover Financial Services

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; 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.