Cambridge Investment Research Advisors Inc. Has $2.78 Million Position in Discover Financial Services (NYSE:DFS)

Cambridge Investment Research Advisors Inc. reduced its holdings in shares of Discover Financial Services (NYSE:DFS) by 26.1% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 28,378 shares of the financial services provider’s stock after selling 10,010 shares during the period. Cambridge Investment Research Advisors Inc.’s holdings in Discover Financial Services were worth $2,776,000 at the end of the most recent reporting period.

Other institutional investors have also made changes to their positions in the company. Cullen Frost Bankers Inc. boosted its position in Discover Financial Services by 155.1% in the third quarter. Cullen Frost Bankers Inc. now owns 301 shares of the financial services provider’s stock valued at $27,000 after buying an additional 183 shares in the last quarter. Tsfg LLC boosted its position in Discover Financial Services by 151.2% in the fourth quarter. Tsfg LLC now owns 309 shares of the financial services provider’s stock valued at $30,000 after buying an additional 186 shares in the last quarter. CI Investments Inc. raised its stake in shares of Discover Financial Services by 982.4% in the third quarter. CI Investments Inc. now owns 368 shares of the financial services provider’s stock worth $33,000 after acquiring an additional 334 shares during the last quarter. Armstrong Advisory Group Inc. bought a new position in shares of Discover Financial Services in the fourth quarter worth about $38,000. Finally, Old North State Trust LLC bought a new position in shares of Discover Financial Services in the third quarter worth about $39,000. 81.74% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, EVP Robert Andrew Eichfeld sold 13,477 shares of the stock in a transaction on Friday, March 3rd. The shares were sold at an average price of $114.18, for a total transaction of $1,538,803.86. Following the completion of the transaction, the executive vice president now owns 31,509 shares in the company, valued at $3,597,697.62. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.69% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Credit Suisse Group reaffirmed an “outperform” rating and issued a $120.00 target price on shares of Discover Financial Services in a research note on Friday, April 21st. Citigroup boosted their target price on shares of Discover Financial Services from $113.00 to $118.00 in a research note on Tuesday, January 24th. JPMorgan Chase & Co. dropped their price target on shares of Discover Financial Services from $111.00 to $102.00 and set a “neutral” rating for the company in a research note on Monday, April 17th. Morgan Stanley dropped their price target on shares of Discover Financial Services from $115.00 to $112.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 5th. Finally, Royal Bank of Canada reissued an “outperform” rating and set a $125.00 price target on shares of Discover Financial Services in a research note on Friday, April 21st. Ten equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $119.00.

Discover Financial Services Stock Down 0.6 %

Discover Financial Services stock opened at $95.23 on Monday. The stock has a market capitalization of $24.18 billion, a PE ratio of 6.41, a price-to-earnings-growth ratio of 1.27 and a beta of 1.43. Discover Financial Services has a twelve month low of $87.64 and a twelve month high of $119.91. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.37. The company has a 50 day moving average of $99.32 and a 200-day moving average of $104.07.

Discover Financial Services (NYSE:DFS – Get Rating) last released its quarterly earnings results on Wednesday, April 19th. The financial services provider reported $3.58 earnings per share for the quarter, missing the consensus estimate of $3.84 by ($0.26). The company had revenue of $3.75 billion during the quarter, compared to analyst estimates of $3.71 billion. Discover Financial Services had a net margin of 24.65% and a return on equity of 31.30%. The firm’s quarterly revenue was up 29.3% compared to the same quarter last year. During the same quarter last year, the company earned $4.22 EPS. On average, equities research analysts anticipate that Discover Financial Services will post 13.43 EPS for the current fiscal year.

Discover Financial Services declared that its Board of Directors has approved a stock buyback program on Wednesday, April 19th that allows the company to buyback $2.70 billion in shares. This buyback authorization allows the financial services provider to reacquire up to 9.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Discover Financial Services Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 8th. Stockholders of record on Thursday, May 25th will be issued a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 2.94%. The ex-dividend date is Wednesday, May 24th. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.60. Discover Financial Services’s dividend payout ratio is 18.86%.

About Discover Financial Services

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Discover Financial Services is a holding company. It operates under the Digital Banking and Payment Services segments. The Digital Banking segment focuses on consumer banking and lending products, specifically Discover-branded credit cards issued to individuals on the Discover Network and other consumer banking products and services including private student loans, personal loans, home loans, and deposit products.