Discover Financial Services (NYSE:DFS) Trading Down 4.4%

Discover Financial Services (NYSE:DFS)’s share price was down 4.4% during mid-day trading on Tuesday . The company traded as low as $133.48 and last traded at $133.99. Approximately 559,436 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 1,675,407 shares. The stock had previously closed at $140.20.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on DFS shares. JPMorgan Chase & Co. lifted their target price on Discover Financial Services from $132.00 to $135.00 and gave the company a “neutral” rating in a research report on Friday, July 19th. Jefferies Financial Group lifted their target price on Discover Financial Services from $145.00 to $150.00 and gave the company a “buy” rating in a research report on Tuesday, July 9th. BTIG Research started coverage on Discover Financial Services in a research report on Friday, June 7th. They issued a “neutral” rating on the stock. Royal Bank of Canada lifted their target price on Discover Financial Services from $140.00 to $148.00 and gave the company a “sector perform” rating in a research report on Friday, July 19th. Finally, BMO Capital Markets lifted their target price on Discover Financial Services from $115.00 to $119.00 and gave the company a “market perform” rating in a research report on Friday, July 19th. Thirteen investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat, Discover Financial Services has an average rating of “Hold” and an average price target of $132.94.

Discover Financial Services Price Performance

The company has a fifty day moving average of $134.84 and a 200 day moving average of $128.82. The firm has a market capitalization of $34.24 billion, a P/E ratio of 15.98, a PEG ratio of 0.86 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 announced its earnings results on Wednesday, July 17th. The financial services provider reported $6.06 EPS for the quarter, beating the consensus estimate of $3.06 by $3.00. Discover Financial Services had a return on equity of 20.92% and a net margin of 12.88%. The business had revenue of $4.54 billion for the quarter, compared to analysts’ expectations of $4.18 billion. During the same period in the prior year, the business posted $3.54 earnings per share. The firm’s revenue was up 17.0% on a year-over-year basis. Sell-side analysts predict that Discover Financial Services will post 12.87 earnings per share for the current year.

Discover Financial Services Dividend Announcement

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

Hedge Funds Weigh In On Discover Financial Services

Institutional investors have recently added to or reduced their stakes in the business. Axxcess Wealth Management LLC raised 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 worth $1,022,000 after purchasing an additional 4,478 shares during the period. Scotia Capital Inc. raised its position in shares of Discover Financial Services by 57.6% during the fourth quarter. Scotia Capital Inc. now owns 25,404 shares of the financial services provider’s stock worth $2,855,000 after purchasing an additional 9,287 shares during the period. Gabelli Funds LLC acquired a new position in shares of Discover Financial Services during the first quarter worth approximately $983,000. Brave Warrior Advisors LLC raised its position in shares of Discover Financial Services by 10.6% during the fourth quarter. Brave Warrior Advisors LLC now owns 2,633,167 shares of the financial services provider’s stock worth $295,968,000 after purchasing an additional 251,909 shares during the period. Finally, Janus Henderson Group PLC raised its position in shares of Discover Financial Services by 61.0% during the first quarter. Janus Henderson Group PLC now owns 62,529 shares of the financial services provider’s stock worth $8,197,000 after purchasing an additional 23,702 shares during the period. 86.94% of the stock is owned by institutional investors and hedge funds.

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.