Discover Financial Services (NYSE:DFS) CEO David W. Nelms sold 30,000 shares of the stock in a transaction that occurred on Tuesday, September 4th. The shares were sold at an average price of $78.11, for a total value of $2,343,300.00. Following the transaction, the chief executive officer now directly owns 1,210,798 shares of the company’s stock, valued at approximately $94,575,431.78. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.
NYSE:DFS opened at $77.46 on Friday. The company has a quick ratio of 1.49, a current ratio of 1.49 and a debt-to-equity ratio of 2.54. The company has a market capitalization of $26.91 billion, a P/E ratio of 12.97, a P/E/G ratio of 0.92 and a beta of 1.52. Discover Financial Services has a one year low of $57.50 and a one year high of $81.93.
Discover Financial Services (NYSE:DFS) last posted its 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 company had revenue of $2.60 billion during the quarter, compared to analysts’ expectations of $2.63 billion. Discover Financial Services had a return on equity of 24.25% and a net margin of 19.07%. The firm’s quarterly revenue was up 7.6% compared to the same quarter last year. During the same quarter last year, the firm earned $1.40 earnings per share. equities research analysts anticipate that Discover Financial Services will post 7.81 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 6th. Shareholders of record on Thursday, August 23rd were paid a dividend of $0.40 per share. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.35. The ex-dividend date was Wednesday, August 22nd. This represents a $1.60 annualized dividend and a yield of 2.07%. Discover Financial Services’s dividend payout ratio (DPR) is 26.76%.
Discover Financial Services announced that its board has initiated a stock repurchase program on Thursday, July 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the financial services provider to buy up to 11.9% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.
DFS has been the subject of a number of research analyst reports. Sandler O’Neill reissued a “buy” rating and set a $87.00 target price on shares of Discover Financial Services in a report on Friday, July 27th. JPMorgan Chase & Co. increased their price target on Discover Financial Services from $78.00 to $81.00 and gave the company a “neutral” rating in a report on Friday, July 27th. Finally, Zacks Investment Research raised Discover Financial Services from a “hold” rating to a “buy” rating and set a $79.00 price target for the company in a report on Tuesday, July 17th. Nine investment analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the company. Discover Financial Services currently has a consensus rating of “Buy” and a consensus target price of $85.27.
A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. increased its stake in Discover Financial Services by 1.2% during the first quarter. BlackRock Inc. now owns 24,203,881 shares of the financial services provider’s stock worth $1,740,986,000 after acquiring an additional 288,682 shares during the last quarter. Boston Partners increased its stake in Discover Financial Services by 0.8% during the second quarter. Boston Partners now owns 12,463,962 shares of the financial services provider’s stock worth $877,588,000 after acquiring an additional 95,312 shares during the last quarter. LSV Asset Management increased its stake in Discover Financial Services by 0.5% during the first quarter. LSV Asset Management now owns 6,935,251 shares of the financial services provider’s stock worth $498,852,000 after acquiring an additional 37,101 shares during the last quarter. Morgan Stanley increased its stake in Discover Financial Services by 11.0% during the second quarter. Morgan Stanley now owns 4,863,732 shares of the financial services provider’s stock worth $342,452,000 after acquiring an additional 482,980 shares during the last quarter. Finally, Amundi Pioneer Asset Management Inc. increased its stake in Discover Financial Services by 46.4% during the first quarter. Amundi Pioneer Asset Management Inc. now owns 3,674,623 shares of the financial services provider’s stock worth $264,318,000 after acquiring an additional 1,165,130 shares during the last quarter. 85.78% of the stock is owned by institutional investors.
About Discover Financial Services
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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