Discover Financial Services (NYSE:DFS) Sets New 12-Month High Following Better-Than-Expected Earnings

Discover Financial Services (NYSE:DFS)’s share price hit a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $198.97 and last traded at $197.98, with a volume of 3349009 shares trading hands. The stock had previously closed at $189.26.

The financial services provider reported $5.11 EPS for the quarter, topping the consensus estimate of $3.13 by $1.98. Discover Financial Services had a net margin of 13.78% and a return on equity of 22.08%.

Discover Financial Services Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 6th. Investors of record on Thursday, February 20th will be paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 1.41%. Discover Financial Services’s payout ratio is currently 22.60%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Barclays raised Discover Financial Services from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $137.00 to $186.00 in a report on Monday, January 6th. Wells Fargo & Company increased their price objective on shares of Discover Financial Services from $160.00 to $185.00 and gave the company an “equal weight” rating in a research report on Friday, January 3rd. UBS Group raised shares of Discover Financial Services from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $150.00 to $239.00 in a report on Monday, January 13th. JPMorgan Chase & Co. cut their price target on shares of Discover Financial Services from $150.00 to $146.00 and set a “neutral” rating on the stock in a report on Tuesday, January 14th. Finally, Truist Financial started coverage on shares of Discover Financial Services in a report on Tuesday, January 7th. They issued a “buy” rating and a $233.00 price objective for the company. Nine analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $171.71.

Hedge Funds Weigh In On Discover Financial Services

Institutional investors and hedge funds have recently made changes to their positions in the business. UMB Bank n.a. boosted its stake in shares of Discover Financial Services by 0.6% during the 4th quarter. UMB Bank n.a. now owns 9,248 shares of the financial services provider’s stock worth $1,602,000 after acquiring an additional 56 shares during the last quarter. Invst LLC raised its holdings in Discover Financial Services by 0.9% in the 3rd quarter. Invst LLC now owns 7,253 shares of the financial services provider’s stock worth $1,018,000 after purchasing an additional 62 shares during the period. CTC Alternative Strategies Ltd. lifted its position in Discover Financial Services by 3.2% during the third quarter. CTC Alternative Strategies Ltd. now owns 2,047 shares of the financial services provider’s stock valued at $287,000 after purchasing an additional 63 shares in the last quarter. Eagle Bluffs Wealth Management LLC grew its holdings in Discover Financial Services by 0.5% during the third quarter. Eagle Bluffs Wealth Management LLC now owns 14,501 shares of the financial services provider’s stock valued at $2,034,000 after purchasing an additional 67 shares during the period. Finally, Perigon Wealth Management LLC grew its holdings in Discover Financial Services by 3.5% during the fourth quarter. Perigon Wealth Management LLC now owns 1,967 shares of the financial services provider’s stock valued at $364,000 after purchasing an additional 67 shares during the period. Hedge funds and other institutional investors own 86.94% of the company’s stock.

Discover Financial Services Stock Performance

The company has a debt-to-equity ratio of 1.09, a current ratio of 1.10 and a quick ratio of 1.03. The firm has a market cap of $49.75 billion, a PE ratio of 15.98, a PEG ratio of 1.09 and a beta of 1.46. The business has a 50-day simple moving average of $177.30 and a 200 day simple moving average of $153.37.

About Discover Financial Services

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; 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.