Discover Financial Services (DFS) Price Target Cut to $75.00 by Analysts at Citigroup

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Discover Financial Services (NYSE:DFS) had its price objective decreased by equities research analysts at Citigroup from $78.00 to $75.00 in a research report issued to clients and investors on Thursday. The brokerage currently has a “neutral” rating on the financial services provider’s stock. Citigroup’s price objective suggests a potential upside of 7.57% from the stock’s current price.

Other analysts also recently issued research reports about the stock. Zacks Investment Research upgraded shares of Discover Financial Services from a “hold” rating to a “buy” rating and set a $82.00 price objective for the company in a report on Tuesday, July 24th. Sandler O’Neill reiterated a “buy” rating and issued a $87.00 price objective on shares of Discover Financial Services in a report on Friday, July 27th. Wells Fargo & Co cut their price objective on shares of Discover Financial Services from $82.00 to $78.00 and set a “market perform” rating for the company in a report on Friday, October 26th. Bank of America increased their price objective on shares of Discover Financial Services from $86.00 to $92.00 and gave the company a “buy” rating in a report on Friday, September 21st. Finally, JPMorgan Chase & Co. upgraded shares of Discover Financial Services from a “neutral” rating to an “overweight” rating in a report on Tuesday, October 2nd. Eight analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Discover Financial Services has an average rating of “Buy” and a consensus price target of $86.80.

DFS stock traded up $0.05 during mid-day trading on Thursday, reaching $69.72. The company’s stock had a trading volume of 17,125 shares, compared to its average volume of 2,111,368. The company has a market cap of $23.71 billion, a price-to-earnings ratio of 11.66, a PEG ratio of 0.71 and a beta of 1.51. The company has a current ratio of 1.08, a quick ratio of 1.49 and a debt-to-equity ratio of 2.54. Discover Financial Services has a fifty-two week low of $63.31 and a fifty-two week high of $81.93.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Thursday, October 25th. The financial services provider reported $2.05 EPS for the quarter, meeting the Zacks’ consensus estimate of $2.05. The company had revenue of $2.72 billion during the quarter, compared to the consensus estimate of $2.69 billion. Discover Financial Services had a net margin of 19.51% and a return on equity of 25.15%. As a group, equities analysts forecast that Discover Financial Services will post 7.83 earnings per share for the current year.

Discover Financial Services announced that its Board of Directors has initiated a share buyback program on Thursday, July 19th that permits the company to buyback $3.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 11.9% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

In related news, Chairman David W. Nelms sold 30,000 shares of the stock in a transaction that occurred on Monday, October 1st. The shares were sold at an average price of $77.16, for a total transaction of $2,314,800.00. Following the completion of the transaction, the chairman now owns 1,180,798 shares of the company’s stock, valued at approximately $91,110,373.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction that occurred on Tuesday, September 4th. The stock was sold at an average price of $78.21, for a total transaction of $293,287.50. Following the transaction, the executive vice president now directly owns 133,852 shares of the company’s stock, valued at approximately $10,468,564.92. The disclosure for this sale can be found here. Insiders have sold a total of 67,500 shares of company stock valued at $5,241,113 in the last 90 days. Insiders own 0.81% of the company’s stock.

Several large investors have recently bought and sold shares of the stock. Boston Partners boosted its position in shares of Discover Financial Services by 0.8% during the 2nd quarter. Boston Partners now owns 12,463,962 shares of the financial services provider’s stock worth $877,588,000 after purchasing an additional 95,312 shares during the period. Morgan Stanley boosted its position in shares of Discover Financial Services by 11.0% during the 2nd quarter. Morgan Stanley now owns 4,863,732 shares of the financial services provider’s stock worth $342,452,000 after purchasing an additional 482,980 shares during the period. Bank of Montreal Can boosted its position in shares of Discover Financial Services by 3.8% during the 3rd quarter. Bank of Montreal Can now owns 2,315,912 shares of the financial services provider’s stock worth $177,053,000 after purchasing an additional 85,508 shares during the period. Schroder Investment Management Group boosted its position in shares of Discover Financial Services by 2.1% during the 2nd quarter. Schroder Investment Management Group now owns 2,216,009 shares of the financial services provider’s stock worth $155,475,000 after purchasing an additional 45,603 shares during the period. Finally, Bank of America Corp DE boosted its position in shares of Discover Financial Services by 7.5% during the 2nd quarter. Bank of America Corp DE now owns 1,844,422 shares of the financial services provider’s stock worth $129,865,000 after purchasing an additional 129,286 shares during the period. 85.53% of the stock is owned by hedge funds and other institutional investors.

About Discover Financial Services

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.

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Analyst Recommendations for Discover Financial Services (NYSE:DFS)

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