Discover Financial Services (NYSE:DFS) Hits New 1-Year High – Here’s Why

Discover Financial Services (NYSE:DFS) shares reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $184.88 and last traded at $180.35, with a volume of 55959 shares traded. The stock had previously closed at $151.85.

Wall Street Analysts Forecast Growth

Several analysts have commented on DFS shares. JPMorgan Chase & Co. lifted their price objective on shares of Discover Financial Services from $132.00 to $135.00 and gave the company a “neutral” rating in a research note on Friday, July 19th. BMO Capital Markets upped their price target on shares of Discover Financial Services from $115.00 to $119.00 and gave the company a “market perform” rating in a report on Friday, July 19th. StockNews.com downgraded Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Monday. Evercore ISI boosted their price objective on Discover Financial Services from $156.00 to $163.00 and gave the company an “in-line” rating in a report on Wednesday, October 30th. Finally, Royal Bank of Canada upped their target price on Discover Financial Services from $148.00 to $161.00 and gave the stock a “sector perform” rating in a research note on Friday, October 18th. Thirteen equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Discover Financial Services currently has an average rating of “Hold” and a consensus target price of $138.81.

Discover Financial Services Stock Performance

The company has a market cap of $43.99 billion, a PE ratio of 14.12, a PEG ratio of 0.96 and a beta of 1.41. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.04 and a current ratio of 1.08. The firm’s 50 day moving average is $142.21 and its 200-day moving average is $133.60.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Wednesday, October 16th. The financial services provider reported $3.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.28 by $0.41. Discover Financial Services had a return on equity of 21.38% and a net margin of 13.78%. The business had revenue of $5.91 billion during the quarter, compared to analyst estimates of $4.36 billion. During the same period in the prior year, the business earned $2.59 earnings per share. On average, research analysts anticipate that Discover Financial Services will post 13.35 earnings per share for the current fiscal year.

Discover Financial Services Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 5th. Shareholders of record on Thursday, November 21st will be paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.60%. The ex-dividend date is Thursday, November 21st. Discover Financial Services’s dividend payout ratio (DPR) is presently 22.60%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Elser Financial Planning Inc purchased a new position in Discover Financial Services during the second quarter worth about $91,044,000. Magnetar Financial LLC purchased a new stake in shares of Discover Financial Services during the 1st quarter valued at approximately $71,693,000. Samlyn Capital LLC lifted its holdings in Discover Financial Services by 368.0% in the second quarter. Samlyn Capital LLC now owns 646,691 shares of the financial services provider’s stock valued at $84,594,000 after acquiring an additional 508,504 shares during the last quarter. M&G Plc purchased a new position in Discover Financial Services in the first quarter worth approximately $62,829,000. Finally, National Bank of Canada FI increased its stake in Discover Financial Services by 430.5% during the first quarter. National Bank of Canada FI now owns 443,707 shares of the financial services provider’s stock worth $54,752,000 after acquiring an additional 360,074 shares during the last quarter. Institutional investors and hedge funds own 86.94% of the company’s stock.

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; 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.