Discover Financial Services (DFS) Coverage Initiated at Wells Fargo & Company
Research analysts at Wells Fargo & Company assumed coverage on shares of Discover Financial Services (NYSE:DFS) in a research note issued to investors on Tuesday, The Fly reports. The firm set a “market perform” rating on the financial services provider’s stock.
Other research analysts have also recently issued research reports about the stock. BidaskClub cut shares of Discover Financial Services from a “hold” rating to a “sell” rating in a research report on Tuesday, August 1st. Zacks Investment Research cut shares of Discover Financial Services from a “hold” rating to a “sell” rating in a research report on Monday, July 31st. Jefferies Group LLC restated a “buy” rating and issued a $75.00 price objective (down previously from $82.00) on shares of Discover Financial Services in a research report on Thursday, July 27th. Barclays PLC restated an “equal weight” rating and issued a $70.00 price objective (down previously from $79.00) on shares of Discover Financial Services in a research report on Thursday, July 13th. Finally, Morgan Stanley dropped their price objective on shares of Discover Financial Services from $71.00 to $70.00 and set an “overweight” rating for the company in a research report on Friday, September 8th. Three research analysts have rated the stock with a sell rating, eight have given a hold rating and sixteen have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $73.63.
Shares of Discover Financial Services (NYSE:DFS) traded down 0.06% during trading on Tuesday, reaching $65.34. The company’s stock had a trading volume of 1,698,207 shares. The company has a market capitalization of $24.33 billion, a P/E ratio of 11.27 and a beta of 1.47. The company’s 50-day moving average is $60.94 and its 200-day moving average is $61.76. Discover Financial Services has a 12 month low of $53.91 and a 12 month high of $74.33.
Discover Financial Services (NYSE:DFS) last posted its quarterly earnings data on Wednesday, July 26th. The financial services provider reported $1.40 earnings per share for the quarter, missing the consensus estimate 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 company had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.40 billion. During the same quarter last year, the firm earned $1.47 EPS. The business’s revenue for the quarter was up 9.2% on a year-over-year basis. On average, analysts forecast that Discover Financial Services will post $5.91 EPS for the current fiscal year.
Discover Financial Services declared that its Board of Directors has authorized a share buyback program on Wednesday, June 28th that authorizes the company to repurchase $2.23 billion in shares. This repurchase authorization authorizes the financial services provider to purchase up to 9.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.
In related news, CEO David W. Nelms sold 30,000 shares of the company’s stock in a transaction on Friday, September 1st. The shares were sold at an average price of $59.10, for a total value of $1,773,000.00. Following the completion of the transaction, the chief executive officer now directly owns 1,529,912 shares of the company’s stock, valued at approximately $90,417,799.20. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Edward W. Mcgrogan sold 1,228 shares of the company’s stock in a transaction on Monday, July 31st. The stock was sold at an average price of $61.06, for a total transaction of $74,981.68. Following the completion of the transaction, the senior vice president now directly owns 13,085 shares of the company’s stock, valued at $798,970.10. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 157,002 shares of company stock valued at $9,694,424. Company insiders own 0.96% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in DFS. BlackRock Inc. boosted its stake in Discover Financial Services by 3,280.4% in the 1st quarter. BlackRock Inc. now owns 30,704,582 shares of the financial services provider’s stock worth $2,099,886,000 after purchasing an additional 29,796,268 shares during the period. Bank of Montreal Can bought a new stake in Discover Financial Services during the 2nd quarter worth about $287,715,000. Norges Bank bought a new stake in Discover Financial Services during the 4th quarter worth about $258,887,000. Diamond Hill Capital Management Inc. lifted its position in Discover Financial Services by 1,458.6% during the 2nd quarter. Diamond Hill Capital Management Inc. now owns 3,559,909 shares of the financial services provider’s stock worth $221,391,000 after buying an additional 3,331,498 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC bought a new stake in Discover Financial Services during the 2nd quarter worth about $199,350,000. 85.45% of the stock is owned by hedge funds and other institutional investors.
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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