Capital World Investors Sells 1,389,431 Shares of Discover Financial Services (NYSE:DFS)

Capital World Investors lessened its stake in Discover Financial Services (NYSE:DFS) by 6.7% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 19,503,948 shares of the financial services provider’s stock after selling 1,389,431 shares during the period. Capital World Investors owned about 7.76% of Discover Financial Services worth $3,378,579,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. SBI Securities Co. Ltd. acquired a new position in shares of Discover Financial Services in the 4th quarter valued at about $33,000. Flagship Wealth Advisors LLC bought a new stake in Discover Financial Services in the fourth quarter worth approximately $34,000. Grove Bank & Trust lifted its stake in Discover Financial Services by 78.1% in the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock valued at $35,000 after buying an additional 89 shares during the period. Bfsg LLC bought a new position in shares of Discover Financial Services during the 4th quarter worth approximately $35,000. Finally, Hantz Financial Services Inc. acquired a new stake in shares of Discover Financial Services during the 4th quarter worth approximately $37,000. Institutional investors and hedge funds own 86.94% of the company’s stock.

Discover Financial Services Trading Up 2.3 %

Shares of DFS stock opened at $159.91 on Friday. Discover Financial Services has a 12-month low of $119.95 and a 12-month high of $205.76. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09. The company has a 50 day moving average of $171.42 and a 200-day moving average of $172.34. The firm has a market cap of $40.23 billion, a P/E ratio of 10.02, a PEG ratio of 1.51 and a beta of 1.20.

Discover Financial Services (NYSE:DFS) last issued its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 EPS for the quarter, beating analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a return on equity of 26.18% and a net margin of 17.29%. Sell-side analysts anticipate that Discover Financial Services will post 13.88 earnings per share for the current year.

Discover Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.75%. The ex-dividend date is Friday, May 23rd. Discover Financial Services’s payout ratio is currently 17.54%.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. JPMorgan Chase & Co. decreased their price target on shares of Discover Financial Services from $169.00 to $129.00 and set a “neutral” rating for the company in a research note on Tuesday, April 8th. Royal Bank of Canada raised their price objective on Discover Financial Services from $193.00 to $210.00 and gave the company a “sector perform” rating in a research note on Friday, January 24th. Truist Financial cut their target price on Discover Financial Services from $262.00 to $219.00 and set a “buy” rating on the stock in a report on Friday, March 21st. Barclays raised their price target on shares of Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a research report on Friday, January 24th. Finally, StockNews.com lowered Discover Financial Services from a “buy” rating to a “hold” rating in a report on Tuesday. Seven analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, Discover Financial Services currently has a consensus rating of “Hold” and an average target price of $188.40.

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.