Discover Financial Services (NYSE:DFS) Given Consensus Recommendation of “Hold” by Brokerages

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Shares of Discover Financial Services (NYSE:DFS) have earned a consensus recommendation of “Hold” from the nineteen ratings firms that are covering the company, Marketbeat Ratings reports. Eleven investment analysts have rated the stock with a hold recommendation and eight have issued a buy recommendation on the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $85.93.

A number of brokerages have issued reports on DFS. Morgan Stanley set a $97.00 price target on shares of Discover Financial Services and gave the company a “buy” rating in a report on Friday, August 9th. Zacks Investment Research raised shares of Discover Financial Services from a “hold” rating to a “buy” rating and set a $86.00 price objective for the company in a research note on Monday, September 9th. Nomura lifted their price objective on shares of Discover Financial Services from $86.00 to $96.00 and gave the stock a “buy” rating in a research note on Wednesday, July 24th. UBS Group lifted their price objective on shares of Discover Financial Services from $83.00 to $92.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 30th. Finally, Deutsche Bank reissued a “hold” rating and issued a $87.00 price objective on shares of Discover Financial Services in a research note on Monday, July 8th.

NYSE DFS traded up $0.08 on Thursday, reaching $84.39. The company had a trading volume of 51,257 shares, compared to its average volume of 1,577,656. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 2.30. The stock has a market capitalization of $26.60 billion, a PE ratio of 10.83, a price-to-earnings-growth ratio of 1.22 and a beta of 1.60. The firm’s 50 day moving average price is $82.24 and its 200 day moving average price is $78.58. Discover Financial Services has a 12 month low of $54.36 and a 12 month high of $92.98.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Tuesday, July 23rd. The financial services provider reported $2.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.11 by $0.21. The company had revenue of $2.98 billion for the quarter, compared to the consensus estimate of $2.81 billion. Discover Financial Services had a net margin of 21.00% and a return on equity of 26.76%. Discover Financial Services’s revenue for the quarter was up 12.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.91 EPS. On average, research analysts expect that Discover Financial Services will post 9.02 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were paid a $0.44 dividend. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.40. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.09%. The ex-dividend date was Wednesday, August 21st. Discover Financial Services’s dividend payout ratio (DPR) is presently 22.59%.

In related news, Director Mary K. Bush sold 993 shares of Discover Financial Services stock in a transaction dated Tuesday, August 6th. The shares were sold at an average price of $83.27, for a total transaction of $82,687.11. Following the completion of the transaction, the director now directly owns 52,075 shares of the company’s stock, valued at approximately $4,336,285.25. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Diane E. Offereins sold 20,000 shares of Discover Financial Services stock in a transaction dated Friday, July 26th. The stock was sold at an average price of $91.76, for a total transaction of $1,835,200.00. Following the transaction, the executive vice president now directly owns 120,874 shares of the company’s stock, valued at $11,091,398.24. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 27,663 shares of company stock valued at $2,534,291. 0.81% of the stock is owned by corporate insiders.

Hedge funds have recently added to or reduced their stakes in the stock. Nuveen Asset Management LLC boosted its position in Discover Financial Services by 707.0% in the 2nd quarter. Nuveen Asset Management LLC now owns 2,719,868 shares of the financial services provider’s stock valued at $211,035,000 after buying an additional 2,382,825 shares during the period. BlackRock Inc. boosted its position in Discover Financial Services by 6.2% in the 1st quarter. BlackRock Inc. now owns 23,825,935 shares of the financial services provider’s stock valued at $1,695,456,000 after buying an additional 1,399,427 shares during the period. AQR Capital Management LLC boosted its position in Discover Financial Services by 151.1% in the 2nd quarter. AQR Capital Management LLC now owns 2,080,467 shares of the financial services provider’s stock valued at $161,424,000 after buying an additional 1,251,827 shares during the period. Schroder Investment Management Group boosted its position in Discover Financial Services by 72.4% in the 2nd quarter. Schroder Investment Management Group now owns 1,722,219 shares of the financial services provider’s stock valued at $133,627,000 after buying an additional 723,471 shares during the period. Finally, JPMorgan Chase & Co. boosted its position in Discover Financial Services by 12.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 4,489,949 shares of the financial services provider’s stock valued at $348,376,000 after buying an additional 503,411 shares during the period. 85.02% 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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