Discover Financial Services (NYSE:DFS) – William Blair decreased their Q3 2017 earnings per share estimates for Discover Financial Services in a report released on Tuesday. William Blair analyst R. Napoli now expects that the financial services provider will post earnings of $1.56 per share for the quarter, down from their prior estimate of $1.58. William Blair has a “Outperform” rating on the stock.
Discover Financial Services (NYSE:DFS) last issued its quarterly earnings results on Wednesday, July 26th. The financial services provider reported $1.40 EPS for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.40 billion. During the same period in the prior year, the company earned $1.47 EPS. The firm’s quarterly revenue was up 9.2% on a year-over-year basis.
Several other analysts have also commented on DFS. Zacks Investment Research raised Discover Financial Services from a “sell” rating to a “hold” rating in a report on Tuesday. ValuEngine lowered Discover Financial Services from a “buy” rating to a “hold” rating in a report on Monday, September 11th. Barclays PLC reaffirmed an “equal weight” rating and issued a $70.00 price objective (down previously from $79.00) on shares of Discover Financial Services in a report on Thursday, July 13th. Oppenheimer Holdings, Inc. set a $69.00 price objective on Discover Financial Services and gave the stock a “buy” rating in a report on Wednesday, July 26th. Finally, BidaskClub raised Discover Financial Services from a “strong sell” rating to a “sell” rating in a report on Saturday, June 10th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and fifteen have assigned a buy rating to the company. The stock has an average rating of “Buy” and an average price target of $73.95.
Discover Financial Services (NYSE DFS) opened at 59.43 on Friday. The stock has a market cap of $22.13 billion, a PE ratio of 10.25 and a beta of 1.45. The stock’s 50 day moving average price is $59.74 and its 200-day moving average price is $62.70. Discover Financial Services has a 12 month low of $53.91 and a 12 month high of $74.33.
Discover Financial Services announced that its Board of Directors has initiated a share repurchase plan on Wednesday, June 28th that authorizes the company to buyback $2.23 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 9.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 7th. Investors of record on Thursday, August 24th were given a $0.35 dividend. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.30. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.36%. The ex-dividend date of this dividend was Tuesday, August 22nd. Discover Financial Services’s payout ratio is currently 24.18%.
In related news, CEO David W. Nelms sold 30,000 shares of the business’s stock in a transaction dated Friday, September 1st. The stock was sold at an average price of $59.10, for a total value of $1,773,000.00. Following the sale, the chief executive officer now directly owns 1,529,912 shares in the company, valued at $90,417,799.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Roger C. Hochschild sold 15,258 shares of the business’s stock in a transaction dated Friday, September 1st. The stock was sold at an average price of $59.64, for a total value of $909,987.12. Following the completion of the sale, the chief operating officer now owns 799,741 shares in the company, valued at $47,696,553.24. The disclosure for this sale can be found here. Insiders sold 157,002 shares of company stock worth $9,580,337 over the last quarter. 0.96% of the stock is owned by company insiders.
Several large investors have recently bought and sold shares of DFS. V Wealth Management LLC purchased a new stake in Discover Financial Services during the second quarter valued at approximately $101,000. FNY Managed Accounts LLC purchased a new stake in Discover Financial Services during the first quarter valued at approximately $124,000. Orrstown Financial Services Inc. raised 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 period. Perigon Wealth Management LLC raised 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 period. Finally, Chicago Partners Investment Group LLC purchased a new stake in Discover Financial Services during the second quarter valued at approximately $168,000. Institutional investors own 86.21% of the company’s stock.
About Discover Financial Services
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.
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