Short Interest in Discover Financial Services (NYSE:DFS) Rises By 5.5%

Discover Financial Services (NYSE:DFS) saw a large growth in short interest in June. As of June 15th, there was short interest totalling 2,310,000 shares, a growth of 5.5% from the May 31st total of 2,190,000 shares. Based on an average daily volume of 1,240,000 shares, the short-interest ratio is currently 1.9 days. Currently, 0.9% of the shares of the company are sold short.

Hedge Funds Weigh In On Discover Financial Services

Hedge funds and other institutional investors have recently modified their holdings of the company. Partnership Wealth Management LLC acquired a new position in shares of Discover Financial Services in the 4th quarter valued at about $25,000. Bruce G. Allen Investments LLC acquired a new position in Discover Financial Services during the 4th quarter worth approximately $28,000. Riverview Trust Co acquired a new position in Discover Financial Services during the 1st quarter worth approximately $34,000. New Covenant Trust Company N.A. acquired a new position in Discover Financial Services during the 1st quarter worth approximately $34,000. Finally, MeadowBrook Investment Advisors LLC acquired a new position in Discover Financial Services during the 4th quarter worth approximately $31,000. 86.94% of the stock is owned by institutional investors and hedge funds.

Discover Financial Services Trading Down 1.1 %

DFS traded down $1.48 during midday trading on Wednesday, hitting $132.06. The company’s stock had a trading volume of 897,552 shares, compared to its average volume of 1,874,883. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 1.50. The firm has a market cap of $33.12 billion, a P/E ratio of 15.08, a PEG ratio of 0.79 and a beta of 1.44. The firm has a 50-day moving average price of $125.02 and a two-hundred day moving average price of $119.23. Discover Financial Services has a 52-week low of $79.04 and a 52-week high of $133.78.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Thursday, April 18th. The financial services provider reported $1.10 EPS for the quarter, missing the consensus estimate of $2.98 by ($1.88). The business had revenue of $4.21 billion during the quarter, compared to analysts’ expectations of $4.07 billion. Discover Financial Services had a net margin of 10.56% and a return on equity of 17.07%. During the same quarter last year, the firm earned $3.58 EPS. On average, research analysts anticipate that Discover Financial Services will post 11.47 earnings per share for the current year.

Discover Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 6th. Stockholders of record on Thursday, May 23rd were paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 2.12%. The ex-dividend date of this dividend was Wednesday, May 22nd. Discover Financial Services’s dividend payout ratio is currently 31.93%.

Wall Street Analyst Weigh In

Several brokerages recently commented on DFS. BTIG Research initiated coverage on shares of Discover Financial Services in a report on Friday, June 7th. They issued a “neutral” rating for the company. JPMorgan Chase & Co. boosted their price target on shares of Discover Financial Services from $110.00 to $120.00 and gave the company a “neutral” rating in a research report on Wednesday, April 3rd. Jefferies Financial Group boosted their price target on shares of Discover Financial Services from $137.00 to $145.00 and gave the company a “buy” rating in a research report on Friday, April 19th. Seaport Res Ptn cut shares of Discover Financial Services from a “buy” rating to a “neutral” rating in a research report on Friday, March 15th. Finally, HSBC boosted their price target on shares of Discover Financial Services from $107.00 to $144.00 and gave the company a “hold” rating in a research report on Thursday, March 21st. Thirteen investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $126.29.

Discover Financial Services Company Profile

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; private student loans, personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.