University of Texas Texas AM Investment Management Co. Grows Position in Discover Financial Services (NYSE:DFS)

University of Texas Texas AM Investment Management Co. boosted its stake in shares of Discover Financial Services (NYSE:DFS) by 1,973.4% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 12,026 shares of the financial services provider’s stock after acquiring an additional 11,446 shares during the period. University of Texas Texas AM Investment Management Co.’s holdings in Discover Financial Services were worth $1,573,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the stock. Axxcess Wealth Management LLC grew its position in shares of Discover Financial Services by 135.1% during the first quarter. Axxcess Wealth Management LLC now owns 7,793 shares of the financial services provider’s stock valued at $1,022,000 after purchasing an additional 4,478 shares in the last quarter. Gabelli Funds LLC bought a new position in Discover Financial Services during the first quarter valued at approximately $983,000. Brave Warrior Advisors LLC grew its holdings in Discover Financial Services by 10.6% during the 4th quarter. Brave Warrior Advisors LLC now owns 2,633,167 shares of the financial services provider’s stock valued at $295,968,000 after buying an additional 251,909 shares in the last quarter. William B. Walkup & Associates Inc. bought a new stake in Discover Financial Services in the 2nd quarter worth approximately $4,835,000. Finally, Janus Henderson Group PLC raised its holdings in shares of Discover Financial Services by 61.0% during the 1st quarter. Janus Henderson Group PLC now owns 62,529 shares of the financial services provider’s stock worth $8,197,000 after acquiring an additional 23,702 shares in the last quarter. 86.94% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Trading Down 2.8 %

DFS stock opened at $136.42 on Wednesday. Discover Financial Services has a 12 month low of $79.04 and a 12 month high of $147.61. The firm’s 50-day moving average is $134.43 and its 200 day moving average is $129.45. The company has a market capitalization of $34.21 billion, a PE ratio of 15.56, a P/E/G ratio of 0.94 and a beta of 1.42. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.12 and a quick ratio of 1.04.

Discover Financial Services (NYSE:DFS) last issued its earnings results on Wednesday, July 17th. The financial services provider reported $6.06 EPS for the quarter, topping analysts’ consensus estimates of $3.06 by $3.00. The business had revenue of $4.54 billion for the quarter, compared to analyst estimates of $4.18 billion. Discover Financial Services had a net margin of 12.88% and a return on equity of 20.92%. The company’s quarterly revenue was up 17.0% compared to the same quarter last year. During the same period last year, the company posted $3.54 earnings per share. On average, research analysts anticipate that Discover Financial Services will post 12.88 EPS for the current year.

Discover Financial Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were issued a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 2.05%. The ex-dividend date of this dividend was Thursday, August 22nd. Discover Financial Services’s dividend payout ratio is 31.93%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on DFS. BMO Capital Markets upped their price target on shares of Discover Financial Services from $115.00 to $119.00 and gave the company a “market perform” rating in a research note on Friday, July 19th. Royal Bank of Canada lifted their price target on Discover Financial Services from $140.00 to $148.00 and gave the stock a “sector perform” rating in a research report on Friday, July 19th. StockNews.com initiated coverage on Discover Financial Services in a research report on Wednesday, September 25th. They set a “hold” rating on the stock. Jefferies Financial Group lifted their target price on Discover Financial Services from $145.00 to $150.00 and gave the stock a “buy” rating in a report on Tuesday, July 9th. Finally, Barclays boosted their target price on Discover Financial Services from $135.00 to $137.00 and gave the company an “equal weight” rating in a research report on Friday, July 19th. Thirteen research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $132.94.

Discover Financial Services Company Profile

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.