Tower Research Capital LLC TRC bought a new position in Discover Financial Services (NYSE:DFS) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 17,738 shares of the financial services provider’s stock, valued at approximately $1,248,000.
Other hedge funds and other institutional investors have also made changes to their positions in the company. Sandy Spring Bank increased its stake in Discover Financial Services by 181.5% in the 2nd quarter. Sandy Spring Bank now owns 1,689 shares of the financial services provider’s stock worth $119,000 after acquiring an additional 1,089 shares during the last quarter. Signaturefd LLC bought a new position in Discover Financial Services in the 1st quarter worth about $143,000. Private Capital Group LLC increased its stake in Discover Financial Services by 8,258.3% in the 1st quarter. Private Capital Group LLC now owns 2,006 shares of the financial services provider’s stock worth $144,000 after acquiring an additional 1,982 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. increased its stake in Discover Financial Services by 8,341.7% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,026 shares of the financial services provider’s stock worth $143,000 after acquiring an additional 2,002 shares during the last quarter. Finally, Edge Wealth Management LLC bought a new position in Discover Financial Services in the 2nd quarter worth about $155,000. Institutional investors and hedge funds own 85.80% of the company’s stock.
In related news, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction dated Wednesday, August 1st. The stock was sold at an average price of $71.60, for a total transaction of $268,500.00. Following the completion of the sale, the executive vice president now directly owns 137,602 shares in the company, valued at approximately $9,852,303.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO David W. Nelms sold 30,000 shares of the stock in a transaction dated Tuesday, September 4th. The shares were sold at an average price of $78.11, for a total value of $2,343,300.00. Following the sale, the chief executive officer now owns 1,210,798 shares of the company’s stock, valued at $94,575,431.78. The disclosure for this sale can be found here. Insiders have sold a total of 101,250 shares of company stock valued at $7,663,313 over the last 90 days. 0.81% of the stock is currently owned by company insiders.
Discover Financial Services (NYSE:DFS) last issued its earnings results on Thursday, July 26th. The financial services provider reported $1.91 earnings per share for the quarter, beating the consensus estimate of $1.88 by $0.03. The company had revenue of $2.60 billion during the quarter, compared to analysts’ expectations of $2.63 billion. Discover Financial Services had a return on equity of 24.25% and a net margin of 19.07%. Discover Financial Services’s quarterly revenue was up 7.6% compared to the same quarter last year. During the same period in the prior year, the business posted $1.40 EPS. As a group, equities research analysts expect that Discover Financial Services will post 7.81 EPS for the current year.
Discover Financial Services announced that its board has authorized a stock repurchase program on Thursday, July 19th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the financial services provider to reacquire up to 11.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.
A number of equities analysts have weighed in on DFS shares. Zacks Investment Research upgraded Discover Financial Services from a “hold” rating to a “buy” rating and set a $80.00 target price on the stock in a research note on Tuesday, July 3rd. JPMorgan Chase & Co. upped their target price on Discover Financial Services from $78.00 to $81.00 and gave the stock a “neutral” rating in a research note on Friday, July 27th. Wells Fargo & Co upped their target price on Discover Financial Services from $76.00 to $82.00 and gave the stock a “market perform” rating in a research note on Monday, October 1st. Finally, Bank of America upped their target price on Discover Financial Services from $86.00 to $92.00 and gave the stock a “buy” rating in a research note on Friday, September 21st. Eight equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $86.76.
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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