Q4 2017 EPS Estimates for Discover Financial Services (DFS) Increased by William Blair
Discover Financial Services (NYSE:DFS) – Equities research analysts at William Blair boosted their Q4 2017 earnings per share (EPS) estimates for shares of Discover Financial Services in a research report issued on Tuesday. William Blair analyst R. Napoli now forecasts that the financial services provider will post earnings per share of $1.52 for the quarter, up from their prior estimate of $1.50. William Blair has a “Outperform” rating on the stock. William Blair also issued estimates for Discover Financial Services’ Q1 2018 earnings at $1.52 EPS, Q2 2018 earnings at $1.58 EPS, Q3 2018 earnings at $1.74 EPS and Q4 2018 earnings at $1.71 EPS.
A number of other equities analysts also recently issued reports on the stock. Zacks Investment Research upgraded shares of Discover Financial Services from a “sell” rating to a “hold” rating in a research note on Tuesday, August 29th. Wells Fargo & Company reiterated an “outperform” rating and set a $70.00 price objective (down from $80.00) on shares of Discover Financial Services in a research note on Sunday, May 21st. ValuEngine downgraded shares of Discover Financial Services from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 2nd. Morgan Stanley reiterated an “overweight” rating and set a $75.00 price objective (down from $81.00) on shares of Discover Financial Services in a research note on Thursday, July 6th. Finally, Jefferies Group LLC reiterated a “buy” rating and set a $82.00 price objective on shares of Discover Financial Services in a research note on Friday, June 16th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and fifteen have given a buy rating to the stock. Discover Financial Services currently has a consensus rating of “Buy” and an average price target of $73.95.
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Discover Financial Services (NYSE DFS) opened at 59.29 on Thursday. The company has a 50-day moving average of $60.02 and a 200-day moving average of $62.84. Discover Financial Services has a one year low of $53.91 and a one year high of $74.33. The stock has a market capitalization of $22.08 billion, a price-to-earnings ratio of 10.23 and a beta of 1.45.
Discover Financial Services (NYSE:DFS) last announced its quarterly earnings data on Wednesday, July 26th. The financial services provider reported $1.40 earnings per share for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.05). Discover Financial Services had a return on equity of 21.28% and a net margin of 20.91%. The firm had revenue of $2.42 billion during the quarter, compared to analysts’ expectations of $2.40 billion. During the same quarter in the previous year, the firm earned $1.47 earnings per share. Discover Financial Services’s revenue was up 9.2% on a year-over-year basis.
Discover Financial Services declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, June 28th that permits the company to buyback $2.23 billion in shares. This buyback authorization permits the financial services provider to buy up to 9.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 7th. Shareholders of record on Thursday, August 24th were issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 2.36%. The ex-dividend date was Tuesday, August 22nd. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.30. Discover Financial Services’s payout ratio is currently 24.18%.
In other Discover Financial Services news, SVP Edward W. Mcgrogan sold 1,228 shares of Discover Financial Services stock in a transaction on Monday, July 31st. The shares were sold at an average price of $61.06, for a total value of $74,981.68. Following the completion of the transaction, the senior vice president now owns 13,085 shares of the company’s stock, valued at $798,970.10. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO David W. Nelms sold 30,000 shares of Discover Financial Services stock in a transaction on Monday, July 3rd. The stock was sold at an average price of $62.52, for a total transaction of $1,875,600.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 157,002 shares of company stock valued at $9,580,337. 0.96% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently added to or reduced their stakes in DFS. Advisors Asset Management Inc. boosted its holdings in Discover Financial Services by 0.7% in the first quarter. Advisors Asset Management Inc. now owns 19,133 shares of the financial services provider’s stock worth $1,309,000 after purchasing an additional 135 shares during the period. Maple Capital Management Inc. boosted its holdings in shares of Discover Financial Services by 14.6% during the first quarter. Maple Capital Management Inc. now owns 82,735 shares of the financial services provider’s stock valued at $5,658,000 after acquiring an additional 10,525 shares during the period. Elkfork Partners LLC boosted its holdings in shares of Discover Financial Services by 49.4% during the first quarter. Elkfork Partners LLC now owns 215,336 shares of the financial services provider’s stock valued at $14,727,000 after acquiring an additional 71,236 shares during the period. Dorsey Wright & Associates acquired a new position in shares of Discover Financial Services during the first quarter valued at $1,548,000. Finally, Xact Kapitalforvaltning AB boosted its holdings in shares of Discover Financial Services by 3.4% during the first quarter. Xact Kapitalforvaltning AB now owns 79,637 shares of the financial services provider’s stock valued at $5,446,000 after acquiring an additional 2,629 shares during the period. 86.21% of the stock is owned by hedge funds and other institutional investors.
Discover Financial Services Company Profile
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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