StockNews.com Initiates Coverage on Discover Financial Services (NYSE:DFS)

StockNews.com began coverage on shares of Discover Financial Services (NYSE:DFS) in a note issued to investors on Tuesday. The brokerage set a “hold” rating on the financial services provider’s stock.

A number of other equities research analysts have also recently commented on the company. The Goldman Sachs Group decreased their price target on Discover Financial Services from $139.00 to $121.00 and set a “buy” rating for the company in a research note on Friday, January 19th. Evercore ISI lifted their price target on Discover Financial Services from $117.00 to $140.00 and gave the stock an “in-line” rating in a research note on Thursday, February 22nd. Wolfe Research restated a “peer perform” rating on shares of Discover Financial Services in a research report on Wednesday, February 21st. Citigroup boosted their price objective on Discover Financial Services from $127.00 to $168.00 and gave the company a “buy” rating in a report on Friday, February 23rd. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on Discover Financial Services from $140.00 to $111.00 and set a “hold” rating on the stock in a report on Friday, January 19th. Eleven investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $124.18.

Read Our Latest Research Report on Discover Financial Services

Discover Financial Services Trading Down 0.7 %

Shares of NYSE:DFS opened at $126.89 on Tuesday. The stock has a 50 day moving average of $117.53 and a 200 day moving average of $102.87. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.49. Discover Financial Services has a 12-month low of $79.04 and a 12-month high of $131.65. The company has a market cap of $31.79 billion, a PE ratio of 11.31, a price-to-earnings-growth ratio of 1.39 and a beta of 1.45.

Discover Financial Services (NYSE:DFSGet Free Report) last released its quarterly earnings results on Thursday, January 18th. The financial services provider reported $1.54 earnings per share for the quarter, missing the consensus estimate of $2.50 by ($0.96). The company had revenue of $4.20 billion for the quarter, compared to analysts’ expectations of $4.10 billion. Discover Financial Services had a net margin of 14.30% and a return on equity of 22.24%. The business’s quarterly revenue was up 12.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.77 EPS. As a group, equities research analysts expect that Discover Financial Services will post 11.44 EPS for the current year.

Insider Activity

In other news, CFO John Greene sold 35,191 shares of the business’s stock in a transaction that occurred on Friday, January 26th. The stock was sold at an average price of $106.51, for a total transaction of $3,748,193.41. Following the completion of the transaction, the chief financial officer now directly owns 18,592 shares in the company, valued at $1,980,233.92. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Discover Financial Services

Institutional investors and hedge funds have recently modified their holdings of the stock. Prudential PLC increased its stake in shares of Discover Financial Services by 127.4% in the first quarter. Prudential PLC now owns 16,749 shares of the financial services provider’s stock worth $1,846,000 after acquiring an additional 9,382 shares during the last quarter. Cetera Investment Advisers lifted its stake in shares of Discover Financial Services by 8.8% in the first quarter. Cetera Investment Advisers now owns 14,977 shares of the financial services provider’s stock valued at $1,650,000 after buying an additional 1,216 shares during the period. Sequoia Financial Advisors LLC lifted its stake in shares of Discover Financial Services by 33.8% in the first quarter. Sequoia Financial Advisors LLC now owns 4,372 shares of the financial services provider’s stock valued at $482,000 after buying an additional 1,104 shares during the period. Baird Financial Group Inc. raised its position in Discover Financial Services by 0.8% in the first quarter. Baird Financial Group Inc. now owns 27,565 shares of the financial services provider’s stock worth $3,038,000 after purchasing an additional 206 shares in the last quarter. Finally, Loomis Sayles & Co. L P raised its position in Discover Financial Services by 5.2% in the first quarter. Loomis Sayles & Co. L P now owns 2,961 shares of the financial services provider’s stock worth $326,000 after purchasing an additional 146 shares in the last quarter. Institutional investors and hedge funds own 86.94% of the company’s stock.

Discover Financial Services Company Profile

(Get Free Report)

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; private student loans, 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.

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Analyst Recommendations for Discover Financial Services (NYSE:DFS)

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