Discover Financial Services (NYSE:DFS) Now Covered by Analysts at UBS Group

UBS Group started coverage on shares of Discover Financial Services (NYSE:DFS) in a research report sent to investors on Monday morning, The Fly reports. The firm issued a neutral rating and a $120.00 target price on the financial services provider’s stock.

DFS has been the subject of several other research reports. Morgan Stanley raised shares of Discover Financial Services from an equal weight rating to an overweight rating and raised their price target for the company from $104.00 to $116.00 in a research note on Wednesday, October 26th. Citigroup lowered their target price on shares of Discover Financial Services from $115.00 to $103.00 and set a neutral rating for the company in a research note on Thursday, October 13th. Stephens lifted their target price on shares of Discover Financial Services to $107.00 in a research note on Tuesday, September 20th. StockNews.com began coverage on shares of Discover Financial Services in a research note on Wednesday, October 12th. They issued a hold rating for the company. Finally, JPMorgan Chase & Co. decreased their price target on shares of Discover Financial Services from $113.00 to $109.00 and set a neutral rating for the company in a research note on Tuesday, October 18th. Seven equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of Hold and a consensus price target of $118.21.

Discover Financial Services Price Performance

DFS stock opened at $108.14 on Monday. The company has a fifty day moving average price of $98.50 and a 200-day moving average price of $101.25. The company has a market capitalization of $29.55 billion, a P/E ratio of 7.04, a PEG ratio of 1.75 and a beta of 1.41. Discover Financial Services has a 52-week low of $87.64 and a 52-week high of $130.81. The company has a debt-to-equity ratio of 1.53, a quick ratio of 1.26 and a current ratio of 1.25.

Discover Financial Services (NYSE:DFSGet Rating) last released its quarterly earnings results on Monday, October 24th. The financial services provider reported $3.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.72 by ($0.18). The business had revenue of $3.48 billion for the quarter, compared to the consensus estimate of $3.40 billion. Discover Financial Services had a net margin of 31.90% and a return on equity of 34.94%. Discover Financial Services’s revenue was up 25.3% on a year-over-year basis. During the same period in the previous year, the business posted $3.54 EPS. As a group, equities analysts expect that Discover Financial Services will post 15.32 EPS for the current year.

Discover Financial Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 8th. Stockholders of record on Wednesday, November 23rd will be issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.22%. The ex-dividend date of this dividend is Tuesday, November 22nd. Discover Financial Services’s dividend payout ratio is currently 15.63%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DFS. First Trust Advisors LP boosted its holdings in Discover Financial Services by 489.5% during the first quarter. First Trust Advisors LP now owns 1,999,341 shares of the financial services provider’s stock worth $220,307,000 after purchasing an additional 1,660,180 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in Discover Financial Services by 51.2% during the second quarter. Goldman Sachs Group Inc. now owns 1,636,711 shares of the financial services provider’s stock worth $154,801,000 after purchasing an additional 554,438 shares during the last quarter. BlackRock Inc. boosted its holdings in Discover Financial Services by 1.7% during the first quarter. BlackRock Inc. now owns 20,961,715 shares of the financial services provider’s stock worth $2,309,769,000 after purchasing an additional 351,679 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. boosted its holdings in Discover Financial Services by 40.4% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,198,287 shares of the financial services provider’s stock worth $113,334,000 after purchasing an additional 344,578 shares during the last quarter. Finally, Royal Bank of Canada boosted its holdings in Discover Financial Services by 37.0% during the first quarter. Royal Bank of Canada now owns 1,121,620 shares of the financial services provider’s stock worth $123,591,000 after purchasing an additional 302,853 shares during the last quarter. 83.92% of the stock is currently owned by hedge funds and other institutional investors.

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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