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

Shares of Discover Financial Services (NYSE:DFS) have received a consensus rating of “Hold” from the twenty ratings firms that are presently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, six have given a hold recommendation and eleven have issued a buy recommendation on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $64.71.

Several analysts have recently issued reports on the company. JMP Securities reduced their price objective on Discover Financial Services from $92.00 to $48.00 and set a “market outperform” rating on the stock in a research note on Monday, April 27th. Nomura Securities raised Discover Financial Services from a “neutral” rating to a “buy” rating and reduced their price target for the company from $82.00 to $59.00 in a research report on Friday, March 20th. Imperial Capital reissued an “outperform” rating and set a $32.00 price objective (down from $34.00) on shares of Discover Financial Services in a research report on Tuesday, March 17th. Piper Sandler raised their target price on shares of Discover Financial Services from $49.00 to $51.00 and gave the company a “neutral” rating in a report on Wednesday, May 20th. Finally, Wells Fargo & Co lowered their price target on shares of Discover Financial Services from $88.00 to $53.00 and set an “equal weight” rating for the company in a report on Wednesday, April 8th.

In other news, EVP Robert Andrew Eichfeld acquired 12,650 shares of the company’s stock in a transaction on Wednesday, May 6th. The shares were bought at an average price of $39.50 per share, with a total value of $499,675.00. Following the completion of the acquisition, the executive vice president now owns 33,454 shares in the company, valued at approximately $1,321,433. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 0.55% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Capital World Investors grew its position in shares of Discover Financial Services by 2.6% during the fourth quarter. Capital World Investors now owns 23,708,462 shares of the financial services provider’s stock worth $2,010,951,000 after acquiring an additional 595,190 shares during the last quarter. BlackRock Inc. grew its position in Discover Financial Services by 0.7% during the 1st quarter. BlackRock Inc. now owns 21,489,597 shares of the financial services provider’s stock worth $766,534,000 after purchasing an additional 142,220 shares during the last quarter. FMR LLC increased its stake in Discover Financial Services by 7.0% in the fourth quarter. FMR LLC now owns 9,134,032 shares of the financial services provider’s stock valued at $774,749,000 after purchasing an additional 594,038 shares during the period. JPMorgan Chase & Co. raised its holdings in shares of Discover Financial Services by 42.6% in the first quarter. JPMorgan Chase & Co. now owns 7,155,617 shares of the financial services provider’s stock valued at $255,242,000 after buying an additional 2,138,282 shares during the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of Discover Financial Services by 6.3% during the fourth quarter. Geode Capital Management LLC now owns 5,168,009 shares of the financial services provider’s stock worth $437,654,000 after buying an additional 304,935 shares during the period. Institutional investors own 82.82% of the company’s stock.

NYSE DFS traded up $2.55 during trading on Tuesday, hitting $52.39. The stock had a trading volume of 5,861,693 shares, compared to its average volume of 4,496,242. The company has a market capitalization of $14.55 billion, a PE ratio of 7.84, a PEG ratio of 4.66 and a beta of 1.87. Discover Financial Services has a twelve month low of $23.25 and a twelve month high of $92.98. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 2.87. The firm has a 50 day moving average price of $39.96 and a 200 day moving average price of $62.95.

Discover Financial Services (NYSE:DFS) last announced its earnings results on Wednesday, April 22nd. The financial services provider reported ($0.25) earnings per share for the quarter, missing the consensus estimate of $2.09 by ($2.34). Discover Financial Services had a return on equity of 20.38% and a net margin of 15.39%. The business had revenue of $2.89 billion for the quarter, compared to analysts’ expectations of $2.88 billion. During the same period in the previous year, the company earned $2.15 earnings per share. Discover Financial Services’s quarterly revenue was up 4.5% on a year-over-year basis. On average, sell-side analysts anticipate that Discover Financial Services will post 2 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Thursday, May 21st will be given a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a dividend yield of 3.36%. The ex-dividend date of this dividend is Wednesday, May 20th. Discover Financial Services’s dividend payout ratio (DPR) is 19.38%.

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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