Short Interest in Discover Financial Services (NYSE:DFS) Increases By 9.0%

Discover Financial Services (NYSE:DFS) saw a large increase in short interest in the month of May. As of May 31st, there was short interest totalling 2,190,000 shares, an increase of 9.0% from the May 15th total of 2,010,000 shares. Based on an average trading volume of 1,300,000 shares, the short-interest ratio is currently 1.7 days. Approximately 0.9% of the company’s stock are sold short.

Discover Financial Services Price Performance

DFS traded up $1.24 during trading on Tuesday, reaching $126.95. 995,026 shares of the company traded hands, compared to its average volume of 1,899,569. The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.12 and a current ratio of 1.12. The firm has a fifty day simple moving average of $124.04 and a 200 day simple moving average of $117.43. 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 $31.81 billion, a P/E ratio of 14.48, a PEG ratio of 0.74 and a beta of 1.41.

Discover Financial Services (NYSE:DFSGet Free Report) last issued its quarterly earnings data on Thursday, April 18th. The financial services provider reported $1.10 earnings per share for the quarter, missing analysts’ consensus estimates of $2.98 by ($1.88). Discover Financial Services had a net margin of 10.56% and a return on equity of 17.07%. The firm had revenue of $4.21 billion for the quarter, compared to analysts’ expectations of $4.07 billion. During the same quarter in the previous year, the business earned $3.58 EPS. On average, equities analysts forecast that Discover Financial Services will post 11.48 EPS for the current year.

Discover Financial Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 6th. Stockholders of record on Thursday, May 23rd were given a dividend of $0.70 per share. The ex-dividend date was Wednesday, May 22nd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.21%. Discover Financial Services’s dividend payout ratio is currently 31.93%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Partnership Wealth Management LLC purchased a new stake in Discover Financial Services in the 4th quarter worth about $25,000. Bruce G. Allen Investments LLC acquired a new stake in shares of Discover Financial Services in the fourth quarter worth $28,000. Riverview Trust Co acquired a new position in shares of Discover Financial Services in the 1st quarter valued at $34,000. New Covenant Trust Company N.A. acquired a new position in shares of Discover Financial Services during the 1st quarter worth approximately $34,000. Finally, MeadowBrook Investment Advisors LLC acquired a new position in shares of Discover Financial Services during the fourth quarter valued at approximately $31,000. 86.94% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on DFS shares. Royal Bank of Canada reiterated a “sector perform” rating and issued a $140.00 price target (up previously from $117.00) on shares of Discover Financial Services in a research note on Wednesday, February 21st. Barclays raised their price target on shares of Discover Financial Services from $120.00 to $123.00 and gave the company an “equal weight” rating in a research report on Friday, April 19th. StockNews.com initiated coverage on Discover Financial Services in a research report on Thursday, June 13th. They issued a “hold” rating on the stock. HSBC boosted their price target on Discover Financial Services from $107.00 to $144.00 and gave the stock a “hold” rating in a research note on Thursday, March 21st. Finally, Jefferies Financial Group increased their price objective on Discover Financial Services from $137.00 to $145.00 and gave the company a “buy” rating in a research report on Friday, April 19th. Thirteen analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $126.29.

View Our Latest Stock Report on Discover Financial Services

About Discover Financial Services

(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.

Further Reading

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