StockNews.com Initiates Coverage on Discover Financial Services (NYSE:DFS)

StockNews.com assumed coverage on shares of Discover Financial Services (NYSE:DFS) in a research note issued to investors on Monday morning. The brokerage issued a hold rating on the financial services provider’s stock.

A number of other research analysts also recently issued reports on the stock. Keefe, Bruyette & Woods boosted their price target on shares of Discover Financial Services from $145.00 to $160.00 and gave the stock an outperform rating in a research report on Monday, July 8th. Barclays lifted their target price on shares of Discover Financial Services from $135.00 to $137.00 and gave the stock an equal weight rating in a research note on Friday, July 19th. Royal Bank of Canada upped their price target on shares of 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. BMO Capital Markets lifted their price objective on Discover Financial Services from $115.00 to $119.00 and gave the stock a market perform rating in a research report on Friday, July 19th. Finally, BTIG Research assumed coverage on Discover Financial Services in a research report on Friday, June 7th. They set a neutral rating on the stock. Thirteen investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of Hold and an average target price of $132.94.

Discover Financial Services Price Performance

Shares of NYSE:DFS opened at $129.34 on Monday. Discover Financial Services has a one year low of $79.04 and a one year high of $147.61. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.12 and a quick ratio of 1.04. The company has a market cap of $32.44 billion, a price-to-earnings ratio of 14.75, a PEG ratio of 0.86 and a beta of 1.42. The firm has a 50 day simple moving average of $133.87 and a 200 day simple moving average of $127.91.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Wednesday, July 17th. The financial services provider reported $6.06 EPS for the quarter, beating analysts’ consensus estimates of $3.06 by $3.00. The company had revenue of $4.54 billion during the quarter, compared to analysts’ expectations of $4.18 billion. Discover Financial Services had a return on equity of 20.92% and a net margin of 12.88%. Discover Financial Services’s revenue was up 17.0% compared to the same quarter last year. During the same period in the prior year, the company earned $3.54 EPS. Research analysts predict that Discover Financial Services will post 12.87 earnings per share for the current fiscal year.

Discover Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.16%. The ex-dividend date of this dividend was Thursday, August 22nd. Discover Financial Services’s payout ratio is 31.93%.

Institutional Trading of Discover Financial Services

A number of institutional investors have recently modified their holdings of the company. Apollon Wealth Management LLC purchased a new stake in Discover Financial Services in the 4th quarter worth approximately $387,000. Cary Street Partners Investment Advisory LLC raised its holdings in shares of Discover Financial Services by 116.0% during the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 3,722 shares of the financial services provider’s stock valued at $418,000 after acquiring an additional 1,999 shares in the last quarter. Johnson Investment Counsel Inc. lifted its stake in Discover Financial Services by 6.9% in the fourth quarter. Johnson Investment Counsel Inc. now owns 3,849 shares of the financial services provider’s stock worth $433,000 after acquiring an additional 250 shares during the period. QRG Capital Management Inc. boosted its holdings in Discover Financial Services by 8.2% in the fourth quarter. QRG Capital Management Inc. now owns 18,641 shares of the financial services provider’s stock valued at $2,095,000 after acquiring an additional 1,408 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. increased its position in Discover Financial Services by 5.0% during the 4th quarter. Envestnet Portfolio Solutions Inc. now owns 65,806 shares of the financial services provider’s stock valued at $7,397,000 after purchasing an additional 3,135 shares during the period. 86.94% of the stock is currently owned by hedge funds and other institutional investors.

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; 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.