First Business Financial Services Inc. Reduces Stake in Discover Financial Services (NYSE:DFS)

First Business Financial Services Inc. lowered its position in Discover Financial Services (NYSE:DFS) by 2.2% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 12,376 shares of the financial services provider’s stock after selling 277 shares during the period. Discover Financial Services makes up approximately 0.2% of First Business Financial Services Inc.’s investment portfolio, making the stock its 29th largest holding. First Business Financial Services Inc.’s holdings in Discover Financial Services were worth $960,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Convergence Investment Partners LLC boosted its position in Discover Financial Services by 104.3% in the 2nd quarter. Convergence Investment Partners LLC now owns 44,486 shares of the financial services provider’s stock worth $3,452,000 after purchasing an additional 22,708 shares in the last quarter. Arden Trust Co purchased a new stake in Discover Financial Services in the 2nd quarter worth approximately $397,000. WBI Investments Inc. acquired a new position in shares of Discover Financial Services during the 2nd quarter worth approximately $1,997,000. CHICAGO TRUST Co NA raised its stake in shares of Discover Financial Services by 1.4% during the 2nd quarter. CHICAGO TRUST Co NA now owns 35,031 shares of the financial services provider’s stock worth $2,718,000 after buying an additional 484 shares during the period. Finally, AE Wealth Management LLC acquired a new position in shares of Discover Financial Services during the 2nd quarter worth approximately $343,000. Hedge funds and other institutional investors own 84.95% of the company’s stock.

In other Discover Financial Services news, SVP Edward W. Mcgrogan sold 1,894 shares of the firm’s stock in a transaction on Thursday, July 25th. The stock was sold at an average price of $92.35, for a total value of $174,910.90. Following the completion of the sale, the senior vice president now directly owns 11,272 shares of the company’s stock, valued at approximately $1,040,969.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Mary K. Bush sold 496 shares of the firm’s stock in a transaction on Wednesday, May 15th. The stock was sold at an average price of $77.53, for a total value of $38,454.88. Following the completion of the sale, the director now directly owns 53,564 shares of the company’s stock, valued at $4,152,816.92. The disclosure for this sale can be found here. Over the last three months, insiders sold 27,166 shares of company stock valued at $2,490,059. 0.81% of the stock is owned by corporate insiders.

Several brokerages have recently weighed in on DFS. Nomura upped their target price on Discover Financial Services from $86.00 to $96.00 and gave the stock a “buy” rating in a research note on Wednesday, July 24th. Morgan Stanley upped their target price on Discover Financial Services from $91.00 to $93.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 24th. Bank of America began coverage on Discover Financial Services in a research note on Wednesday, June 19th. They set a “neutral” rating for the company. Deutsche Bank reaffirmed a “hold” rating and set a $87.00 target price on shares of Discover Financial Services in a research note on Monday, July 8th. Finally, Barclays upped their target price on Discover Financial Services from $87.00 to $91.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 24th. Twelve research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. Discover Financial Services currently has an average rating of “Hold” and a consensus price target of $84.12.

NYSE DFS opened at $86.68 on Friday. The company has a fifty day moving average price of $81.80. Discover Financial Services has a one year low of $54.36 and a one year high of $92.98. The company has a current ratio of 1.08, a quick ratio of 1.38 and a debt-to-equity ratio of 2.46. The firm has a market cap of $28.06 billion, a P/E ratio of 11.13, a P/E/G ratio of 1.31 and a beta of 1.55.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings data on Tuesday, July 23rd. The financial services provider reported $2.32 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.11 by $0.21. Discover Financial Services had a return on equity of 26.41% and a net margin of 21.00%. The firm had revenue of $2.98 billion during the quarter, compared to the consensus estimate of $2.81 billion. During the same period in the prior year, the company earned $1.91 EPS. The firm’s revenue was up 12.9% compared to the same quarter last year. On average, research analysts predict that Discover Financial Services will post 9 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Thursday, August 22nd will be paid a $0.44 dividend. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.40. This represents a $1.76 annualized dividend and a yield of 2.03%. The ex-dividend date of this dividend is Wednesday, August 21st. Discover Financial Services’s dividend payout ratio is currently 20.54%.

Discover Financial Services Profile

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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Institutional Ownership by Quarter for Discover Financial Services (NYSE:DFS)

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