Calamos Wealth Management LLC acquired a new stake in shares of Discover Financial Services (NYSE:DFS) in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 11,831 shares of the financial services provider’s stock, valued at approximately $763,000.
A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. BlackRock Inc. grew its holdings in Discover Financial Services by 3,280.4% during the first quarter. BlackRock Inc. now owns 30,704,582 shares of the financial services provider’s stock valued at $2,099,886,000 after purchasing an additional 29,796,268 shares during the period. Vanguard Group Inc. grew its holdings in Discover Financial Services by 0.9% during the second quarter. Vanguard Group Inc. now owns 25,748,479 shares of the financial services provider’s stock valued at $1,601,297,000 after purchasing an additional 217,535 shares during the period. Capital World Investors grew its holdings in Discover Financial Services by 18.3% during the second quarter. Capital World Investors now owns 10,578,342 shares of the financial services provider’s stock valued at $657,867,000 after purchasing an additional 1,638,334 shares during the period. FMR LLC grew its holdings in Discover Financial Services by 17.4% during the second quarter. FMR LLC now owns 10,374,397 shares of the financial services provider’s stock valued at $645,184,000 after purchasing an additional 1,534,882 shares during the period. Finally, Diamond Hill Capital Management Inc. grew its holdings in Discover Financial Services by 97.6% during the third quarter. Diamond Hill Capital Management Inc. now owns 7,035,035 shares of the financial services provider’s stock valued at $453,619,000 after purchasing an additional 3,475,126 shares during the period. 88.02% of the stock is owned by institutional investors and hedge funds.
Discover Financial Services (NYSE:DFS) traded up $0.24 on Tuesday, hitting $65.00. The stock had a trading volume of 2,186,100 shares, compared to its average volume of 2,668,096. The stock has a market capitalization of $23,290.00, a P/E ratio of 11.13, a P/E/G ratio of 1.71 and a beta of 1.51. The company has a debt-to-equity ratio of 2.52, a quick ratio of 1.55 and a current ratio of 1.55. Discover Financial Services has a 1 year low of $57.50 and a 1 year high of $74.33.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 7th. Stockholders of record on Wednesday, November 22nd will be issued a $0.35 dividend. The ex-dividend date is Tuesday, November 21st. This represents a $1.40 annualized dividend and a dividend yield of 2.15%. Discover Financial Services’s dividend payout ratio is currently 24.10%.
Discover Financial Services announced that its board has authorized a stock buyback plan on Tuesday, July 25th that permits the company to buyback $2.75 billion in outstanding shares. This buyback authorization permits the financial services provider to repurchase up to 11.3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board believes its stock is undervalued.
In related news, EVP Kathryn Mcnamara Corley sold 4,000 shares of the business’s stock in a transaction dated Friday, September 1st. The stock was sold at an average price of $59.63, for a total transaction of $238,520.00. Following the transaction, the executive vice president now owns 150,744 shares in the company, valued at approximately $8,988,864.72. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO David W. Nelms sold 30,000 shares of the business’s stock in a transaction dated Friday, September 1st. The shares were sold at an average price of $59.10, for a total value of $1,773,000.00. Following the transaction, the chief executive officer now owns 1,529,912 shares in the company, valued at approximately $90,417,799.20. The disclosure for this sale can be found here. In the last quarter, insiders sold 172,277 shares of company stock worth $11,020,650. Company insiders own 0.96% of the company’s stock.
A number of research firms have recently commented on DFS. BidaskClub lowered Discover Financial Services from a “hold” rating to a “sell” rating in a report on Tuesday, August 1st. Zacks Investment Research lowered Discover Financial Services from a “hold” rating to a “sell” rating in a report on Monday, July 31st. Jefferies Group LLC reaffirmed a “buy” rating and issued a $75.00 price target (down from $82.00) on shares of Discover Financial Services in a report on Thursday, July 27th. ValuEngine lowered Discover Financial Services from a “buy” rating to a “hold” rating in a report on Monday, September 11th. Finally, Morgan Stanley cut their price target on Discover Financial Services from $71.00 to $70.00 and set an “overweight” rating for the company in a report on Friday, September 8th. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and sixteen have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $74.45.
About Discover Financial Services
Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.
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