Discover Financial Services (NYSE:DFS) Given Average Recommendation of “Buy” by Analysts

Discover Financial Services (NYSE:DFS) has been given a consensus recommendation of “Buy” by the nineteen ratings firms that are currently covering the firm, Marketbeat reports. Five analysts have rated the stock with a hold recommendation and eleven have issued a buy recommendation on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $141.53.

A number of equities research analysts recently commented on the company. JPMorgan Chase & Co. lowered their price target on Discover Financial Services from $150.00 to $142.00 and set an “overweight” rating for the company in a research report on Wednesday, January 19th. Wolfe Research decreased their target price on Discover Financial Services from $160.00 to $144.00 in a research report on Thursday, March 17th. Deutsche Bank Aktiengesellschaft raised their target price on Discover Financial Services from $145.00 to $150.00 in a research report on Friday. Credit Suisse Group raised their target price on Discover Financial Services from $142.00 to $148.00 and gave the company an “outperform” rating in a research report on Friday, January 21st. Finally, Evercore ISI assumed coverage on Discover Financial Services in a research report on Friday, January 21st. They set a “hold” rating and a $130.00 target price for the company.

NYSE DFS traded down $0.49 on Tuesday, reaching $112.79. The company had a trading volume of 5,685 shares, compared to its average volume of 1,335,706. The stock has a market capitalization of $32.13 billion, a P/E ratio of 6.68, a P/E/G ratio of 0.14 and a beta of 1.45. The company’s fifty day moving average is $112.57 and its 200 day moving average is $116.47. Discover Financial Services has a 52-week low of $100.07 and a 52-week high of $135.69. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.38.

Discover Financial Services (NYSE:DFSGet Rating) last released its quarterly earnings results on Wednesday, April 27th. The financial services provider reported $4.22 EPS for the quarter, beating analysts’ consensus estimates of $3.57 by $0.65. The business had revenue of $2.90 billion during the quarter, compared to analyst estimates of $2.99 billion. Discover Financial Services had a return on equity of 41.57% and a net margin of 38.42%. Discover Financial Services’s quarterly revenue was up 3.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $5.04 EPS. On average, research analysts expect that Discover Financial Services will post 14.26 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 9th. Shareholders of record on Thursday, May 26th will be issued a $0.60 dividend. The ex-dividend date of this dividend is Wednesday, May 25th. This represents a $2.40 annualized dividend and a dividend yield of 2.13%. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.50. Discover Financial Services’s dividend payout ratio (DPR) is presently 11.80%.

In related news, CAO Shifra Kolsky sold 800 shares of the firm’s stock in a transaction dated Tuesday, February 15th. The stock was sold at an average price of $127.00, for a total transaction of $101,600.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO John Greene sold 4,443 shares of the firm’s stock in a transaction dated Tuesday, February 15th. The shares were sold at an average price of $127.95, for a total value of $568,481.85. The disclosure for this sale can be found here. In the last ninety days, insiders sold 13,892 shares of company stock worth $1,747,661. Insiders own 0.59% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the business. BlackRock Inc. increased its stake in Discover Financial Services by 2.3% in the 4th quarter. BlackRock Inc. now owns 20,610,036 shares of the financial services provider’s stock worth $2,381,696,000 after purchasing an additional 457,067 shares during the period. State Street Corp increased its stake in Discover Financial Services by 2.1% in the 4th quarter. State Street Corp now owns 13,584,398 shares of the financial services provider’s stock worth $1,569,813,000 after purchasing an additional 275,094 shares during the period. Geode Capital Management LLC increased its stake in Discover Financial Services by 6.0% in the 4th quarter. Geode Capital Management LLC now owns 6,364,472 shares of the financial services provider’s stock worth $734,302,000 after purchasing an additional 360,707 shares during the period. Boston Partners increased its stake in Discover Financial Services by 13.0% in the 4th quarter. Boston Partners now owns 4,347,646 shares of the financial services provider’s stock worth $502,490,000 after purchasing an additional 501,073 shares during the period. Finally, Northern Trust Corp increased its stake in Discover Financial Services by 0.4% in the 4th quarter. Northern Trust Corp now owns 3,483,170 shares of the financial services provider’s stock worth $402,515,000 after purchasing an additional 12,843 shares during the period. 85.53% of the stock is currently owned by institutional investors and hedge funds.

Discover Financial Services Company Profile (Get Rating)

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.

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Analyst Recommendations for Discover Financial Services (NYSE:DFS)

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