Discover Financial Services (DFS) Shares Bought by Bank of America Corp DE

Bank of America Corp DE raised its stake in Discover Financial Services (NYSE:DFS) by 7.5% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,844,422 shares of the financial services provider’s stock after acquiring an additional 129,286 shares during the period. Bank of America Corp DE owned 0.54% of Discover Financial Services worth $129,865,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Sandy Spring Bank raised its holdings in shares of Discover Financial Services by 181.5% in the second quarter. Sandy Spring Bank now owns 1,689 shares of the financial services provider’s stock valued at $119,000 after buying an additional 1,089 shares during the last quarter. Signaturefd LLC purchased a new stake in shares of Discover Financial Services in the first quarter valued at about $143,000. Migdal Insurance & Financial Holdings Ltd. raised its holdings in shares of Discover Financial Services by 8,341.7% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,026 shares of the financial services provider’s stock valued at $143,000 after buying an additional 2,002 shares during the last quarter. Private Capital Group LLC raised its holdings in shares of Discover Financial Services by 8,258.3% in the first quarter. Private Capital Group LLC now owns 2,006 shares of the financial services provider’s stock valued at $144,000 after buying an additional 1,982 shares during the last quarter. Finally, Edge Wealth Management LLC purchased a new stake in shares of Discover Financial Services in the second quarter valued at about $155,000. Institutional investors own 85.79% of the company’s stock.

DFS has been the subject of a number of research reports. JPMorgan Chase & Co. upped their target price on shares of Discover Financial Services from $78.00 to $81.00 and gave the company a “neutral” rating in a report on Friday, July 27th. Zacks Investment Research raised shares of Discover Financial Services from a “hold” rating to a “buy” rating and set a $80.00 target price for the company in a report on Tuesday, July 3rd. Finally, Sandler O’Neill reaffirmed a “buy” rating and issued a $87.00 target price on shares of Discover Financial Services in a report on Friday, July 27th. Nine equities research analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the stock. Discover Financial Services has an average rating of “Buy” and an average price target of $85.27.

In related news, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction dated Tuesday, September 4th. The shares were sold at an average price of $78.21, for a total transaction of $293,287.50. Following the completion of the transaction, the executive vice president now directly owns 133,852 shares of the company’s stock, valued at $10,468,564.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO David W. Nelms sold 30,000 shares of the stock in a transaction dated Monday, July 2nd. The stock was sold at an average price of $69.93, for a total transaction of $2,097,900.00. The disclosure for this sale can be found here. Insiders have sold 101,250 shares of company stock valued at $7,418,813 over the last three months. 0.81% of the stock is currently owned by corporate insiders.

NYSE DFS opened at $77.84 on Friday. The stock has a market cap of $26.58 billion, a P/E ratio of 13.02, a PEG ratio of 0.91 and a beta of 1.52. Discover Financial Services has a 52-week low of $58.48 and a 52-week high of $81.93. The company has a debt-to-equity ratio of 2.54, a current ratio of 1.49 and a quick ratio of 1.49.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Thursday, July 26th. The financial services provider reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.88 by $0.03. The firm had revenue of $2.60 billion during the quarter, compared to analysts’ expectations of $2.63 billion. Discover Financial Services had a net margin of 19.07% and a return on equity of 24.25%. The firm’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.40 earnings per share. sell-side analysts predict that Discover Financial Services will post 7.8 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Thursday, September 6th. Investors of record on Thursday, August 23rd were issued a dividend of $0.40 per share. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.35. This represents a $1.60 annualized dividend and a yield of 2.06%. The ex-dividend date was Wednesday, August 22nd. Discover Financial Services’s dividend payout ratio is currently 26.76%.

Discover Financial Services declared that its board has initiated a stock repurchase program on Thursday, July 19th that permits the company to buyback $3.00 billion in shares. This buyback authorization permits the financial services provider to purchase up to 11.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

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

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