Discover Financial Services (NYSE:DFS) – William Blair upped their Q1 2019 earnings estimates for Discover Financial Services in a note issued to investors on Tuesday, February 19th. William Blair analyst R. Napoli now anticipates that the financial services provider will post earnings of $1.89 per share for the quarter, up from their prior forecast of $1.82. William Blair also issued estimates for Discover Financial Services’ Q2 2019 earnings at $2.05 EPS, Q3 2019 earnings at $2.28 EPS, Q4 2019 earnings at $2.45 EPS, FY2019 earnings at $8.65 EPS and FY2020 earnings at $9.55 EPS.
A number of other research analysts have also weighed in on the company. Bank of America set a $80.00 price target on Discover Financial Services and gave the stock a “buy” rating in a research note on Friday, January 25th. Compass Point set a $74.00 price target on Discover Financial Services and gave the stock a “hold” rating in a research note on Friday, January 25th. BMO Capital Markets reduced their price target on Discover Financial Services to $85.00 and set a “market perform” rating on the stock in a research note on Friday, January 25th. Zacks Investment Research lowered Discover Financial Services from a “hold” rating to a “sell” rating in a research note on Friday, January 25th. Finally, Stephens reissued a “hold” rating and set a $80.00 price target on shares of Discover Financial Services in a research note on Sunday, January 6th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and seven have assigned a buy rating to the company. The stock has an average rating of “Hold” and an average price target of $81.57.
Discover Financial Services (NYSE:DFS) last announced its earnings results on Thursday, January 24th. The financial services provider reported $2.03 EPS for the quarter, missing analysts’ consensus estimates of $2.09 by ($0.06). Discover Financial Services had a net margin of 21.25% and a return on equity of 25.87%. The company had revenue of $2.81 billion for the quarter, compared to analyst estimates of $2.81 billion. During the same quarter last year, the company posted $1.51 EPS. Discover Financial Services’s quarterly revenue was up 7.4% compared to the same quarter last year.
Several institutional investors and hedge funds have recently modified their holdings of the stock. B.S. Pension Fund Trustee Ltd acting for the British Steel Pension Fund acquired a new stake in Discover Financial Services in the 4th quarter valued at $486,000. Nordea Investment Management AB increased its holdings in Discover Financial Services by 0.5% in the 4th quarter. Nordea Investment Management AB now owns 3,409,349 shares of the financial services provider’s stock valued at $201,083,000 after purchasing an additional 18,590 shares in the last quarter. APG Asset Management N.V. increased its holdings in Discover Financial Services by 11.6% in the 4th quarter. APG Asset Management N.V. now owns 2,720,632 shares of the financial services provider’s stock valued at $140,369,000 after purchasing an additional 281,800 shares in the last quarter. HRT Financial LLC increased its holdings in Discover Financial Services by 123.8% in the 4th quarter. HRT Financial LLC now owns 8,353 shares of the financial services provider’s stock valued at $492,000 after purchasing an additional 4,620 shares in the last quarter. Finally, Millennium Management LLC increased its holdings in Discover Financial Services by 18.4% in the 4th quarter. Millennium Management LLC now owns 634,458 shares of the financial services provider’s stock valued at $37,420,000 after purchasing an additional 98,727 shares in the last quarter. 84.42% of the stock is currently owned by institutional investors and hedge funds.
In related news, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction on Monday, December 3rd. The stock was sold at an average price of $71.98, for a total value of $269,925.00. Following the transaction, the executive vice president now directly owns 122,602 shares of the company’s stock, valued at approximately $8,824,891.96. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Roger C. Hochschild bought 30,000 shares of the business’s stock in a transaction that occurred on Monday, January 28th. The stock was purchased at an average cost of $66.67 per share, for a total transaction of $2,000,100.00. Following the completion of the transaction, the chief executive officer now directly owns 834,457 shares in the company, valued at approximately $55,633,248.19. The disclosure for this purchase can be found here. Insiders sold a total of 114,012 shares of company stock worth $7,893,863 over the last ninety days. Corporate insiders own 0.81% of the company’s stock.
The company also recently announced a quarterly dividend, which will be paid on Thursday, March 7th. Investors of record on Thursday, February 21st will be given a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.25%. The ex-dividend date of this dividend is Wednesday, February 20th. Discover Financial Services’s dividend payout ratio (DPR) is currently 20.54%.
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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