Discover Financial Services (NYSE:DFS) Lowered to “Neutral” at Bank of America Corporation
Discover Financial Services (NYSE:DFS) was downgraded by stock analysts at Bank of America Corporation from a “buy” rating to a “neutral” rating in a report released on Thursday, The Fly reports.
A number of other equities research analysts have also recently commented on DFS. Rafferty Capital Markets restated a “hold” rating and set a $70.00 target price on shares of Discover Financial Services in a research note on Wednesday, March 29th. Jefferies Group LLC reiterated a “buy” rating and set a $82.00 price objective on shares of Discover Financial Services in a research report on Friday, April 7th. Keefe, Bruyette & Woods reiterated a “buy” rating and set a $84.00 price objective on shares of Discover Financial Services in a research report on Monday, April 10th. BMO Capital Markets reiterated a “hold” rating and set a $68.00 price objective on shares of Discover Financial Services in a research report on Tuesday, April 11th. Finally, Evercore ISI reduced their price objective on shares of Discover Financial Services from $79.00 to $78.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 26th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and seventeen have issued a buy rating to the company. Discover Financial Services currently has a consensus rating of “Buy” and a consensus price target of $75.22.
Discover Financial Services (NYSE DFS) traded down 4.26% during mid-day trading on Thursday, reaching $60.44. 7,624,581 shares of the company were exchanged. The stock has a market capitalization of $22.98 billion, a price-to-earnings ratio of 10.32 and a beta of 1.47. Discover Financial Services has a one year low of $53.91 and a one year high of $74.33. The stock has a 50 day moving average of $61.22 and a 200-day moving average of $65.30.
Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, July 26th. The financial services provider reported $1.40 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by $0.05. Discover Financial Services had a return on equity of 21.86% and a net margin of 22.08%. The firm had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same quarter in the previous year, the business posted $1.47 EPS. Discover Financial Services’s revenue was up 9.2% on a year-over-year basis. On average, equities analysts expect that Discover Financial Services will post $5.98 earnings per share for the current fiscal year.
Discover Financial Services announced that its Board of Directors has approved a share buyback plan on Wednesday, June 28th that permits the company to repurchase $2.23 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 9.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.
In related news, EVP Julie A. Loeger sold 5,000 shares of the company’s stock in a transaction that occurred on Monday, May 1st. The stock was sold at an average price of $62.54, for a total value of $312,700.00. Following the sale, the executive vice president now owns 28,345 shares in the company, valued at $1,772,696.30. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO David W. Nelms sold 30,000 shares of the company’s stock in a transaction that occurred on Monday, July 3rd. The shares were sold at an average price of $62.52, for a total value of $1,875,600.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 103,516 shares of company stock worth $6,456,648. 0.96% of the stock is owned by insiders.
Large investors have recently modified their holdings of the stock. BlackRock Inc. raised its stake in shares of Discover Financial Services by 3,280.4% in the first quarter. BlackRock Inc. now owns 30,704,582 shares of the financial services provider’s stock worth $2,099,886,000 after buying an additional 29,796,268 shares in the last quarter. Bank of Montreal Can purchased a new stake in shares of Discover Financial Services during the second quarter worth approximately $287,715,000. Norges Bank bought a new stake in Discover Financial Services during the fourth quarter valued at approximately $258,887,000. Diamond Hill Capital Management Inc. raised its stake in Discover Financial Services by 1,458.6% in the second quarter. Diamond Hill Capital Management Inc. now owns 3,559,909 shares of the financial services provider’s stock valued at $221,391,000 after buying an additional 3,331,498 shares in the last quarter. Finally, NN Investment Partners Holdings N.V. bought a new stake in Discover Financial Services during the first quarter valued at approximately $133,324,000. Hedge funds and other institutional investors own 84.13% of the company’s stock.
About Discover Financial Services
Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.
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