Discover Financial Services (DFS) Downgraded by ValuEngine to Hold

ValuEngine cut shares of Discover Financial Services (NYSE:DFS) from a buy rating to a hold rating in a research report report published on Monday.

Several other equities analysts have also recently issued reports on DFS. Jefferies Group LLC reiterated a buy rating and set a $75.00 price target (down from $82.00) on shares of Discover Financial Services in a research report on Thursday, July 27th. Zacks Investment Research cut Discover Financial Services from a hold rating to a sell rating in a research report on Monday, July 31st. BidaskClub cut Discover Financial Services from a hold rating to a sell rating in a research report on Tuesday, August 1st. Barclays PLC reiterated an equal weight rating and set a $70.00 price target (down from $79.00) on shares of Discover Financial Services in a research report on Thursday, July 13th. Finally, Wells Fargo & Company cut Discover Financial Services to a buy rating and set a $70.00 price target on the stock. in a research report on Friday, May 19th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and fifteen have given a buy rating to the company. Discover Financial Services presently has a consensus rating of Buy and an average target price of $73.95.

Discover Financial Services (NYSE DFS) traded up 0.725% during mid-day trading on Monday, reaching $59.075. The company’s stock had a trading volume of 634,738 shares. The firm’s 50 day moving average price is $59.77 and its 200 day moving average price is $62.79. The firm has a market capitalization of $22.00 billion, a P/E ratio of 10.192 and a beta of 1.45. Discover Financial Services has a 52 week low of $53.91 and a 52 week high of $74.33.

Discover Financial Services (NYSE:DFS) last posted its earnings results on Wednesday, July 26th. The financial services provider reported $1.40 EPS for the quarter, missing the consensus estimate of $1.45 by ($0.05). Discover Financial Services had a net margin of 20.91% and a return on equity of 21.28%. The business had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same quarter in the prior year, the business earned $1.47 earnings per share. The firm’s revenue was up 9.2% compared to the same quarter last year. On average, analysts anticipate that Discover Financial Services will post $5.92 EPS for the current fiscal year.

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The firm also recently announced a quarterly dividend, which was paid on Thursday, September 7th. Stockholders of record on Thursday, August 24th were given a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 2.39%. The ex-dividend date was Tuesday, August 22nd. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.30. Discover Financial Services’s dividend payout ratio (DPR) is 24.18%.

Discover Financial Services announced that its Board of Directors has approved a stock buyback program on Wednesday, June 28th that allows the company to repurchase $2.23 billion in shares. This repurchase authorization allows the financial services provider to buy up to 9.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

In other news, EVP Carlos Minetti sold 8,000 shares of the firm’s stock in a transaction on Monday, July 3rd. The stock was sold at an average price of $62.42, for a total value of $499,360.00. Following the completion of the sale, the executive vice president now owns 205,149 shares of the company’s stock, valued at $12,805,400.58. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO David W. Nelms sold 30,000 shares of the firm’s stock in a transaction on Monday, July 3rd. The stock was sold at an average price of $62.52, for a total value of $1,875,600.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 157,002 shares of company stock valued at $9,580,337. 0.96% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. V Wealth Management LLC acquired a new stake in Discover Financial Services during the second quarter valued at $101,000. FNY Managed Accounts LLC acquired a new stake in Discover Financial Services during the first quarter valued at $124,000. Orrstown Financial Services Inc. boosted its position in Discover Financial Services by 16.7% during the second quarter. Orrstown Financial Services Inc. now owns 2,002 shares of the financial services provider’s stock valued at $125,000 after purchasing an additional 286 shares during the last quarter. Perigon Wealth Management LLC boosted its position in Discover Financial Services by 2.3% during the first quarter. Perigon Wealth Management LLC now owns 2,146 shares of the financial services provider’s stock valued at $147,000 after purchasing an additional 48 shares during the last quarter. Finally, Capstone Investment Advisors Netherlands B.V. acquired a new stake in Discover Financial Services during the second quarter valued at $157,000. 86.21% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Company Profile

Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.

To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Discover Financial Services (NYSE:DFS)

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