Discover Financial Services (NYSE:DFS) Short Interest Update

Discover Financial Services (NYSE:DFS) was the target of a large growth in short interest during the month of August. As of August 31st, there was short interest totalling 6,515,900 shares, a growth of 13.5% from the July 31st total of 5,738,600 shares. Approximately 2.1% of the shares of the stock are sold short. Based on an average trading volume of 1,940,000 shares, the days-to-cover ratio is presently 3.4 days.

A number of equities analysts have weighed in on DFS shares. Wells Fargo & Co upped their target price on Discover Financial Services from $82.00 to $88.00 and gave the stock a “market perform” rating in a research note on Wednesday, July 24th. Deutsche Bank reiterated a “hold” rating and set a $87.00 price objective on shares of Discover Financial Services in a research report on Monday, July 8th. Zacks Investment Research upgraded Discover Financial Services from a “hold” rating to a “buy” rating and set a $86.00 price objective on the stock in a research report on Monday. JMP Securities upgraded Discover Financial Services from an “outperform” rating to a “buy” rating in a research report on Thursday, July 25th. Finally, Nomura increased their price objective on Discover Financial Services from $86.00 to $96.00 and gave the company a “buy” rating in a research report on Wednesday, July 24th. Eleven analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Discover Financial Services currently has a consensus rating of “Hold” and an average price target of $85.53.

In other Discover Financial Services news, Director Mary K. Bush sold 993 shares of the company’s stock in a transaction dated Tuesday, August 6th. The stock was sold at an average price of $83.27, for a total value of $82,687.11. Following the transaction, the director now directly owns 52,075 shares in the company, valued at approximately $4,336,285.25. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Edward W. Mcgrogan sold 1,894 shares of the company’s stock in a transaction dated Thursday, July 25th. The stock was sold at an average price of $92.35, for a total value of $174,910.90. Following the completion of the transaction, the senior vice president now owns 11,272 shares in the company, valued at $1,040,969.20. The disclosure for this sale can be found here. Insiders sold a total of 27,663 shares of company stock worth $2,534,291 over the last 90 days. Corporate insiders own 0.81% of the company’s stock.



Several institutional investors have recently bought and sold shares of the company. Icon Wealth Partners LLC bought a new position in Discover Financial Services during the 1st quarter valued at approximately $26,000. Virtus ETF Advisers LLC bought a new position in shares of Discover Financial Services in the 2nd quarter worth approximately $27,000. Weaver Consulting Group bought a new position in shares of Discover Financial Services in the 1st quarter worth approximately $28,000. IMA Wealth Inc. raised its position in shares of Discover Financial Services by 1,448.3% in the 1st quarter. IMA Wealth Inc. now owns 449 shares of the financial services provider’s stock worth $32,000 after acquiring an additional 420 shares in the last quarter. Finally, Semmax Financial Advisors Inc. raised its position in shares of Discover Financial Services by 75.6% in the 2nd quarter. Semmax Financial Advisors Inc. now owns 418 shares of the financial services provider’s stock worth $32,000 after acquiring an additional 180 shares in the last quarter. Institutional investors own 85.04% of the company’s stock.

Shares of NYSE DFS traded up $0.67 during mid-day trading on Friday, hitting $85.17. The stock had a trading volume of 52,401 shares, compared to its average volume of 1,578,364. The company has a debt-to-equity ratio of 2.30, a quick ratio of 1.33 and a current ratio of 1.33. Discover Financial Services has a 1 year low of $54.36 and a 1 year high of $92.98. The business has a 50 day moving average price of $83.20 and a two-hundred day moving average price of $78.19. The firm has a market cap of $27.14 billion, a P/E ratio of 10.92, a price-to-earnings-growth ratio of 1.23 and a beta of 1.60.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Tuesday, July 23rd. The financial services provider reported $2.32 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.11 by $0.21. Discover Financial Services had a net margin of 21.00% and a return on equity of 26.76%. The business had revenue of $2.98 billion during the quarter, compared to analysts’ expectations of $2.81 billion. During the same quarter in the prior year, the company posted $1.91 EPS. The firm’s revenue for the quarter was up 12.9% compared to the same quarter last year. Equities research analysts predict that Discover Financial Services will post 9.02 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Stockholders of record on Thursday, August 22nd were issued a dividend of $0.44 per share. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.40. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.07%. The ex-dividend date of this dividend was Wednesday, August 21st. Discover Financial Services’s dividend payout ratio is currently 22.59%.

Discover Financial Services Company Profile

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.

Further Reading: What is the return on assets (ROA) ratio?

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