Discover Financial Services (NYSE:DFS) Given Consensus Rating of “Hold” by Analysts

Shares of Discover Financial Services (NYSE:DFS) have been assigned an average recommendation of “Hold” from the twenty ratings firms that are currently covering the firm, Marketbeat.com reports. Twelve analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $132.94.

A number of research analysts have commented on DFS shares. Barclays increased their target price on Discover Financial Services from $135.00 to $137.00 and gave the stock an “equal weight” rating in a report on Friday, July 19th. JPMorgan Chase & Co. lifted their price objective on shares of Discover Financial Services from $132.00 to $135.00 and gave the stock a “neutral” rating in a report on Friday, July 19th. StockNews.com began coverage on shares of Discover Financial Services in a report on Wednesday, September 25th. They set a “hold” rating on the stock. Royal Bank of Canada raised their price target on shares of Discover Financial Services from $140.00 to $148.00 and gave the stock a “sector perform” rating in a research report on Friday, July 19th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of Discover Financial Services from $145.00 to $160.00 and gave the company an “outperform” rating in a research report on Monday, July 8th.

Discover Financial Services Stock Performance

Shares of DFS opened at $140.32 on Tuesday. The firm has a market cap of $35.19 billion, a price-to-earnings ratio of 16.00, a PEG ratio of 0.94 and a beta of 1.42. 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 business’s 50 day moving average is $134.50 and its two-hundred day moving average is $129.33. Discover Financial Services has a 52-week low of $79.04 and a 52-week high of $147.61.

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

Discover Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were given a dividend of $0.70 per share. The ex-dividend date of this dividend was Thursday, August 22nd. This represents a $2.80 dividend on an annualized basis and a yield of 2.00%. Discover Financial Services’s dividend payout ratio (DPR) is presently 31.93%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Opal Wealth Advisors LLC bought a new position in Discover Financial Services in the 2nd quarter valued at about $26,000. Y.D. More Investments Ltd boosted its holdings in shares of Discover Financial Services by 147.8% in the second quarter. Y.D. More Investments Ltd now owns 223 shares of the financial services provider’s stock valued at $29,000 after acquiring an additional 133 shares in the last quarter. Whittier Trust Co. of Nevada Inc. increased its stake in shares of Discover Financial Services by 72.5% during the second quarter. Whittier Trust Co. of Nevada Inc. now owns 226 shares of the financial services provider’s stock valued at $30,000 after acquiring an additional 95 shares during the period. Larson Financial Group LLC raised its holdings in Discover Financial Services by 348.2% during the second quarter. Larson Financial Group LLC now owns 251 shares of the financial services provider’s stock worth $33,000 after purchasing an additional 195 shares in the last quarter. Finally, Riverview Trust Co acquired a new stake in Discover Financial Services in the first quarter worth approximately $34,000. 86.94% of the stock is owned by institutional investors and hedge funds.

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.