Discover Financial Services (NYSE:DFS) Receives Consensus Rating of “Hold” from Brokerages

Shares of Discover Financial Services (NYSE:DFS) have been given a consensus rating of “Hold” by the nineteen brokerages that are covering the stock, Marketbeat.com reports. Twelve analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $84.21.

A number of research analysts have recently commented on DFS shares. Royal Bank of Canada started coverage on shares of Discover Financial Services in a research note on Friday, May 3rd. They set an “outperform” rating and a $96.00 price objective for the company. UBS Group upped their price objective on shares of Discover Financial Services from $83.00 to $92.00 and gave the company a “neutral” rating in a research note on Tuesday, July 30th. Nomura upped their price objective on shares of Discover Financial Services from $86.00 to $96.00 and gave the company a “buy” rating in a research note on Wednesday, July 24th. Barclays increased their target price on shares of Discover Financial Services from $87.00 to $91.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 24th. Finally, Bank of America started coverage on shares of Discover Financial Services in a research report on Wednesday, June 19th. They set a “neutral” rating for the company.

Shares of NYSE DFS traded down $2.08 on Wednesday, reaching $84.60. 3,186 shares of the company traded hands, compared to its average volume of 2,335,228. Discover Financial Services has a fifty-two week low of $54.36 and a fifty-two week high of $92.98. The firm’s 50 day moving average is $81.80. The company has a quick ratio of 1.38, a current ratio of 1.08 and a debt-to-equity ratio of 2.46. The company has a market capitalization of $28.06 billion, a PE ratio of 10.80, a PEG ratio of 1.27 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 Zacks’ consensus estimate of $2.11 by $0.21. Discover Financial Services had a net margin of 21.00% and a return on equity of 26.41%. The company had revenue of $2.98 billion during the quarter, compared to the consensus estimate of $2.81 billion. During the same quarter in the prior year, the company posted $1.91 EPS. The company’s quarterly revenue was up 12.9% compared to the same quarter last year. As a group, analysts anticipate that Discover Financial Services will post 9 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Thursday, August 22nd will be given a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a yield of 2.08%. The ex-dividend date is Wednesday, August 21st. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.40. Discover Financial Services’s dividend payout ratio is 20.54%.

In other Discover Financial Services news, EVP Diane E. Offereins sold 20,000 shares of the stock in a transaction that occurred on Friday, July 26th. The shares were sold at an average price of $91.76, for a total value of $1,835,200.00. Following the completion of the sale, the executive vice president now owns 120,874 shares of the company’s stock, valued at $11,091,398.24. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Edward W. Mcgrogan sold 1,894 shares of the stock in a transaction that occurred on Thursday, July 25th. The shares were sold at an average price of $92.35, for a total transaction 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 disclosure for this sale can be found here. In the last three months, insiders have sold 27,166 shares of company stock valued at $2,490,059. Corporate insiders own 0.81% of the company’s stock.

Large investors have recently modified their holdings of the business. Weaver Consulting Group acquired a new stake in Discover Financial Services in the first quarter valued at approximately $28,000. Icon Wealth Partners LLC purchased a new position in shares of Discover Financial Services during the 1st quarter valued at approximately $26,000. Next Capital Management LLC purchased a new position in shares of Discover Financial Services during the 2nd quarter valued at approximately $34,000. IMA Wealth Inc. boosted its stake in shares of Discover Financial Services by 1,448.3% during the 1st quarter. IMA Wealth Inc. now owns 449 shares of the financial services provider’s stock valued at $32,000 after buying an additional 420 shares during the last quarter. Finally, Essex Savings Bank boosted its stake in shares of Discover Financial Services by 66.7% during the 1st quarter. Essex Savings Bank now owns 500 shares of the financial services provider’s stock valued at $36,000 after buying an additional 200 shares during the last quarter. 84.93% of the stock is owned by institutional investors.

Discover Financial Services Company 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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Analyst Recommendations for Discover Financial Services (NYSE:DFS)

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