Brokerages Set Discover Financial Services (NYSE:DFS) Target Price at $126.29

Discover Financial Services (NYSE:DFS) has been given an average rating of “Hold” by the eighteen research firms that are covering the stock, MarketBeat reports. Eleven equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $126.29.

Several analysts have weighed in on DFS shares. The Goldman Sachs Group lowered their price objective on Discover Financial Services from $139.00 to $121.00 and set a “buy” rating for the company in a research report on Friday, January 19th. BMO Capital Markets dropped their price objective on Discover Financial Services from $116.00 to $104.00 and set a “market perform” rating for the company in a report on Monday, January 22nd. Wolfe Research restated a “peer perform” rating on shares of Discover Financial Services in a report on Wednesday, February 21st. HSBC raised their target price on shares of Discover Financial Services from $107.00 to $144.00 and gave the stock a “hold” rating in a research report on Thursday, March 21st. Finally, Seaport Res Ptn downgraded Discover Financial Services from a “buy” rating to a “neutral” rating in a report on Friday, March 15th.

Institutional Investors Weigh In On Discover Financial Services

Several hedge funds and other institutional investors have recently modified their holdings of DFS. Partnership Wealth Management LLC bought a new position in Discover Financial Services in the fourth quarter worth about $25,000. Bruce G. Allen Investments LLC purchased a new position in shares of Discover Financial Services during the 4th quarter valued at about $28,000. MeadowBrook Investment Advisors LLC acquired a new position in shares of Discover Financial Services in the 4th quarter valued at about $31,000. Riverview Trust Co acquired a new stake in Discover Financial Services during the first quarter worth about $34,000. Finally, Turtle Creek Wealth Advisors LLC purchased a new position in Discover Financial Services during the fourth quarter valued at approximately $35,000. 86.94% of the stock is currently owned by hedge funds and other institutional investors.

Discover Financial Services Stock Performance

Discover Financial Services stock opened at $127.99 on Friday. The firm has a market capitalization of $32.07 billion, a PE ratio of 14.59, a price-to-earnings-growth ratio of 0.77 and a beta of 1.45. Discover Financial Services has a 1-year low of $79.04 and a 1-year high of $131.65. The firm’s 50 day simple moving average is $124.15 and its 200 day simple moving average is $107.76. The company has a current ratio of 1.05, a quick ratio of 1.13 and a debt-to-equity ratio of 1.49.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings data on Thursday, April 18th. The financial services provider reported $1.10 earnings per share for the quarter, missing the consensus estimate of $2.98 by ($1.88). The company had revenue of $4.21 billion during the quarter, compared to the consensus estimate of $4.07 billion. Discover Financial Services had a return on equity of 16.74% and a net margin of 10.56%. During the same quarter last year, the company posted $3.58 earnings per share. As a group, analysts expect that Discover Financial Services will post 11.39 earnings per share for the current fiscal year.

Discover Financial Services Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 6th. Stockholders of record on Thursday, May 23rd will be given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 2.19%. The ex-dividend date of this dividend is Wednesday, May 22nd. Discover Financial Services’s dividend payout ratio is currently 31.93%.

Discover Financial Services Company Profile

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.