Investment Analysts’ Recent Ratings Updates for Discover Financial Services (DFS)

Several analysts have recently updated their ratings and price targets for Discover Financial Services (NYSE: DFS):

  • 1/27/2020 – Discover Financial Services had its “in-line” rating reaffirmed by analysts at BMO Capital Markets. They now have a $84.00 price target on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 1/27/2020 – Discover Financial Services had its “hold” rating reaffirmed by analysts at Nomura. They now have a $89.00 price target on the stock.
  • 1/24/2020 – Discover Financial Services was downgraded by analysts at Evercore ISI from an “in-line” rating to an “underperform” rating. They now have a $75.00 price target on the stock.
  • 1/24/2020 – Discover Financial Services had its “overweight” rating reaffirmed by analysts at Morgan Stanley. They now have a $94.00 price target on the stock, down previously from $101.00.
  • 1/24/2020 – Discover Financial Services was downgraded by analysts at Piper Sandler from an “overweight” rating to a “neutral” rating. They now have a $86.00 price target on the stock, down previously from $96.00.
  • 1/24/2020 – Discover Financial Services had its “hold” rating reaffirmed by analysts at Deutsche Bank AG. They now have a $95.00 price target on the stock, down previously from $97.00.
  • 1/24/2020 – Discover Financial Services had its price target lowered by analysts at Wells Fargo & Co from $90.00 to $88.00. They now have an “equal weight” rating on the stock.
  • 1/23/2020 – Discover Financial Services had its “hold” rating reaffirmed by analysts at Wells Fargo & Co.
  • 1/6/2020 – Discover Financial Services had its “neutral” rating reaffirmed by analysts at Wells Fargo & Co.
  • 1/3/2020 – Discover Financial Services was downgraded by analysts at ValuEngine from a “sell” rating to a “strong sell” rating.
  • 12/18/2019 – Discover Financial Services had its “outperform” rating reaffirmed by analysts at Wedbush.
  • 12/5/2019 – Discover Financial Services had its “neutral” rating reaffirmed by analysts at Nomura. They now have a $89.00 price target on the stock, down previously from $96.00.

Shares of NYSE DFS traded down $1.96 during midday trading on Monday, reaching $74.34. 2,502,070 shares of the stock traded hands, compared to its average volume of 2,055,518. The company has a debt-to-equity ratio of 2.19, a current ratio of 1.08 and a quick ratio of 1.28. The stock has a market capitalization of $23.91 billion, a PE ratio of 8.19, a P/E/G ratio of 1.10 and a beta of 1.61. Discover Financial Services has a one year low of $64.86 and a one year high of $92.98. The company’s 50 day moving average is $84.50 and its 200 day moving average is $82.79.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings results on Thursday, January 23rd. The financial services provider reported $2.25 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.24 by $0.01. Discover Financial Services had a return on equity of 26.25% and a net margin of 20.94%. The company had revenue of $2.94 billion for the quarter, compared to analyst estimates of $2.94 billion. During the same quarter in the prior year, the firm posted $2.03 EPS. Discover Financial Services’s quarterly revenue was up 4.9% compared to the same quarter last year. As a group, equities analysts forecast that Discover Financial Services will post 9.38 EPS for the current year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 5th. Investors of record on Thursday, February 20th will be issued a dividend of $0.44 per share. The ex-dividend date of this dividend is Wednesday, February 19th. This represents a $1.76 annualized dividend and a yield of 2.37%. Discover Financial Services’s payout ratio is presently 19.38%.

A number of hedge funds have recently added to or reduced their stakes in DFS. Deroy & Devereaux Private Investment Counsel Inc. boosted its holdings in Discover Financial Services by 2.2% in the fourth quarter. Deroy & Devereaux Private Investment Counsel Inc. now owns 234,249 shares of the financial services provider’s stock worth $19,869,000 after purchasing an additional 4,987 shares in the last quarter. Actinver Wealth Management Inc. boosted its position in shares of Discover Financial Services by 13.4% during the fourth quarter. Actinver Wealth Management Inc. now owns 3,061 shares of the financial services provider’s stock worth $260,000 after purchasing an additional 361 shares in the last quarter. Usca Ria LLC boosted its position in shares of Discover Financial Services by 3.0% during the fourth quarter. Usca Ria LLC now owns 38,043 shares of the financial services provider’s stock worth $3,227,000 after purchasing an additional 1,101 shares in the last quarter. Birch Capital Management LLC bought a new position in shares of Discover Financial Services during the fourth quarter worth $561,000. Finally, Transform Wealth LLC boosted its position in shares of Discover Financial Services by 74.3% during the fourth quarter. Transform Wealth LLC now owns 6,647 shares of the financial services provider’s stock worth $564,000 after purchasing an additional 2,834 shares in the last quarter. Institutional investors and hedge funds own 84.57% of the company’s stock.

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.

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