Discover Financial Services (NYSE:DFS) Receives Average Recommendation of “Hold” from Brokerages

Discover Financial Services (NYSE:DFS) has earned an average rating of “Hold” from the eighteen brokerages that are presently covering the company, Marketbeat Ratings reports. Twelve equities research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $140.33.

Several research firms have recently commented on DFS. StockNews.com downgraded Discover Financial Services from a “buy” rating to a “hold” rating in a report on Monday, November 4th. Royal Bank of Canada lifted their price target on Discover Financial Services from $148.00 to $161.00 and gave the stock a “sector perform” rating in a research note on Friday, October 18th. Wells Fargo & Company increased their price objective on Discover Financial Services from $152.00 to $160.00 and gave the company an “equal weight” rating in a research note on Friday, October 18th. Finally, Evercore ISI lifted their target price on shares of Discover Financial Services from $156.00 to $163.00 and gave the stock an “in-line” rating in a research note on Wednesday, October 30th.

Discover Financial Services Price Performance

DFS opened at $179.22 on Friday. The company has a current ratio of 1.08, a quick ratio of 1.04 and a debt-to-equity ratio of 1.28. The stock has a market capitalization of $45.00 billion, a P/E ratio of 14.46, a PEG ratio of 1.13 and a beta of 1.45. The stock has a 50-day moving average price of $160.69 and a 200-day moving average price of $141.63. Discover Financial Services has a 12-month low of $96.46 and a 12-month high of $188.26.

Discover Financial Services (NYSE:DFS) last issued its earnings results on Wednesday, October 16th. The financial services provider reported $3.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.28 by $0.41. The business had revenue of $5.91 billion during the quarter, compared to analyst estimates of $4.36 billion. Discover Financial Services had a return on equity of 21.38% and a net margin of 13.78%. During the same quarter in the prior year, the firm earned $2.59 earnings per share. Equities analysts predict that Discover Financial Services will post 13.34 earnings per share for the current fiscal year.

Discover Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, December 5th. Investors of record on Thursday, November 21st were given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 1.56%. The ex-dividend date of this dividend was Thursday, November 21st. Discover Financial Services’s dividend payout ratio (DPR) is presently 22.60%.

Institutional Investors Weigh In On Discover Financial Services

Hedge funds have recently added to or reduced their stakes in the stock. Opal Wealth Advisors LLC purchased a new position in shares of Discover Financial Services in the 2nd quarter worth about $26,000. DiNuzzo Private Wealth Inc. increased its stake in Discover Financial Services by 506.5% during the 3rd quarter. DiNuzzo Private Wealth Inc. now owns 188 shares of the financial services provider’s stock valued at $26,000 after purchasing an additional 157 shares in the last quarter. Y.D. More Investments Ltd raised its holdings in Discover Financial Services by 147.8% in the second quarter. Y.D. More Investments Ltd now owns 223 shares of the financial services provider’s stock worth $29,000 after buying an additional 133 shares during the last quarter. Whittier Trust Co. of Nevada Inc. lifted its stake in shares of Discover Financial Services by 72.5% in the second quarter. Whittier Trust Co. of Nevada Inc. now owns 226 shares of the financial services provider’s stock worth $30,000 after buying an additional 95 shares in the last quarter. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of Discover Financial Services during the third quarter valued at approximately $30,000. 86.94% of the stock is owned by institutional investors.

About Discover Financial Services

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.