Lincoln National Corp increased its position in Discover Financial Services (NYSE:DFS) by 13.0% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 10,276 shares of the financial services provider’s stock after purchasing an additional 1,186 shares during the quarter. Lincoln National Corp’s holdings in Discover Financial Services were worth $1,215,000 as of its most recent filing with the Securities & Exchange Commission.
Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in shares of Discover Financial Services by 1.8% in the 2nd quarter. Vanguard Group Inc. now owns 36,208,440 shares of the financial services provider’s stock valued at $4,283,097,000 after purchasing an additional 632,214 shares during the period. BlackRock Inc. lifted its stake in shares of Discover Financial Services by 1.0% in the 2nd quarter. BlackRock Inc. now owns 20,523,011 shares of the financial services provider’s stock valued at $2,427,667,000 after purchasing an additional 195,725 shares during the period. FMR LLC lifted its stake in shares of Discover Financial Services by 1.1% in the 2nd quarter. FMR LLC now owns 17,027,617 shares of the financial services provider’s stock valued at $2,014,197,000 after purchasing an additional 184,810 shares during the period. Capital International Investors raised its stake in Discover Financial Services by 121.9% during the first quarter. Capital International Investors now owns 16,797,500 shares of the financial services provider’s stock valued at $1,595,619,000 after buying an additional 9,226,724 shares during the last quarter. Finally, Geode Capital Management LLC raised its stake in Discover Financial Services by 1.8% during the second quarter. Geode Capital Management LLC now owns 5,221,454 shares of the financial services provider’s stock valued at $615,998,000 after buying an additional 91,242 shares during the last quarter. Institutional investors own 85.28% of the company’s stock.
In other news, Director Mary K. Bush sold 3,824 shares of the business’s stock in a transaction dated Wednesday, July 28th. The shares were sold at an average price of $123.21, for a total value of $471,155.04. Following the sale, the director now directly owns 53,366 shares in the company, valued at approximately $6,575,224.86. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Wanjiku Juanita Walcott sold 15,000 shares of the business’s stock in a transaction dated Wednesday, August 4th. The stock was sold at an average price of $127.00, for a total transaction of $1,905,000.00. Following the completion of the sale, the executive vice president now owns 60,977 shares in the company, valued at $7,744,079. The disclosure for this sale can be found here. Over the last quarter, insiders sold 19,624 shares of company stock worth $2,477,843. 0.54% of the stock is currently owned by insiders.
Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Tuesday, July 20th. The financial services provider reported $5.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.68 by $1.87. The company had revenue of $3.58 billion for the quarter, compared to the consensus estimate of $3.01 billion. Discover Financial Services had a net margin of 36.50% and a return on equity of 46.03%. Discover Financial Services’s revenue for the quarter was up 34.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($1.20) EPS. As a group, analysts forecast that Discover Financial Services will post 16.9 EPS for the current fiscal year.
Discover Financial Services announced that its board has authorized a share repurchase program on Wednesday, July 21st that allows the company to repurchase $2.40 billion in outstanding shares. This repurchase authorization allows the financial services provider to repurchase up to 6.4% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.
The business also recently declared a quarterly dividend, which was paid on Thursday, September 2nd. Shareholders of record on Thursday, August 19th were issued a $0.50 dividend. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.44. This represents a $2.00 dividend on an annualized basis and a yield of 1.63%. The ex-dividend date of this dividend was Wednesday, August 18th. Discover Financial Services’s payout ratio is currently 55.56%.
A number of brokerages have issued reports on DFS. Citigroup reiterated a “buy” rating and set a $154.00 price objective (up previously from $150.00) on shares of Discover Financial Services in a research note on Friday, July 23rd. Seaport Global Securities initiated coverage on Discover Financial Services in a research report on Monday, August 30th. They set a “neutral” rating on the stock. raised Discover Financial Services from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $101.00 to $150.00 in a research report on Friday, July 9th. Zacks Investment Research lowered Discover Financial Services from a “buy” rating to a “hold” rating and set a $124.00 target price for the company. in a research report on Wednesday, July 7th. Finally, Seaport Res Ptn reissued a “neutral” rating on shares of Discover Financial Services in a research report on Monday, August 30th. Ten investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat, Discover Financial Services currently has an average rating of “Hold” and a consensus target price of $127.06.
Discover Financial Services Profile
Discover Financial Services is a holding company, which engages in the provision of direct banking and payment services. It operates through the Direct Banking and Payment Services segments. The Direct Banking segment offers Discover-branded credit cards issued to individuals on the Discover Network and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending and deposit products.
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