Discover Financial Services (NYSE:DFS) Hits New 1-Year High on Earnings Beat

Discover Financial Services (NYSE:DFS) reached a new 52-week high during trading on Thursday following a stronger than expected earnings report. The company traded as high as $198.97 and last traded at $197.98, with a volume of 3349009 shares trading hands. The stock had previously closed at $189.26.

The financial services provider reported $5.11 EPS for the quarter, topping analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a net margin of 13.78% and a return on equity of 22.08%.

Discover Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Stockholders of record on Friday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date is Friday, May 23rd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.39%. Discover Financial Services’s dividend payout ratio is currently 17.54%.

Analyst Ratings Changes

A number of research analysts have recently weighed in on DFS shares. Keefe, Bruyette & Woods raised their price target on shares of Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a report on Monday, December 9th. Barclays upgraded shares of Discover Financial Services from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $137.00 to $186.00 in a research note on Monday, January 6th. Truist Financial initiated coverage on shares of Discover Financial Services in a research note on Tuesday, January 7th. They issued a “buy” rating and a $233.00 target price on the stock. Evercore ISI raised their target price on shares of Discover Financial Services from $156.00 to $163.00 and gave the company an “in-line” rating in a research note on Wednesday, October 30th. Finally, Royal Bank of Canada raised their price target on shares of Discover Financial Services from $148.00 to $161.00 and gave the stock a “sector perform” rating in a research report on Friday, October 18th. Nine investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $171.71.

Institutional Trading of Discover Financial Services

A number of hedge funds have recently modified their holdings of DFS. DiNuzzo Private Wealth Inc. increased its position in Discover Financial Services by 506.5% during the third quarter. DiNuzzo Private Wealth Inc. now owns 188 shares of the financial services provider’s stock worth $26,000 after acquiring an additional 157 shares during the period. Point72 Asia Singapore Pte. Ltd. bought a new position in Discover Financial Services during the third quarter worth about $30,000. Grove Bank & Trust increased its position in Discover Financial Services by 78.1% during the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock worth $35,000 after acquiring an additional 89 shares during the period. Hantz Financial Services Inc. bought a new position in Discover Financial Services during the fourth quarter worth about $37,000. Finally, Pinnacle Bancorp Inc. increased its position in Discover Financial Services by 37.1% during the third quarter. Pinnacle Bancorp Inc. now owns 292 shares of the financial services provider’s stock worth $41,000 after acquiring an additional 79 shares during the period. Institutional investors and hedge funds own 86.94% of the company’s stock.

Discover Financial Services Trading Up 1.7 %

The firm has a market capitalization of $50.49 billion, a P/E ratio of 16.21, a price-to-earnings-growth ratio of 1.10 and a beta of 1.46. The business’s 50-day moving average is $177.76 and its 200 day moving average is $153.68. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.10 and a quick ratio of 1.03.

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.