Discover Financial Services (NYSE:DFS) Cut to “Hold” at StockNews.com

StockNews.com downgraded shares of Discover Financial Services (NYSE:DFS) from a buy rating to a hold rating in a research note issued to investors on Friday.

Other analysts have also issued research reports about the company. Evercore ISI boosted their price target on Discover Financial Services from $156.00 to $163.00 and gave the company an “in-line” rating in a research note on Wednesday, October 30th. Royal Bank of Canada boosted their target price on shares of Discover Financial Services from $148.00 to $161.00 and gave the company a “sector perform” rating in a research note on Friday, October 18th. Wells Fargo & Company increased their target price on shares of Discover Financial Services from $160.00 to $185.00 and gave the stock an “equal weight” rating in a research report on Friday, January 3rd. Keefe, Bruyette & Woods boosted their price target on shares of Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a research report on Monday, December 9th. Finally, UBS Group raised shares of Discover Financial Services from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $150.00 to $239.00 in a report on Monday, January 13th. Ten equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, Discover Financial Services presently has a consensus rating of “Hold” and a consensus price target of $180.57.

Discover Financial Services Stock Performance

NYSE DFS opened at $201.59 on Friday. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.10 and a quick ratio of 1.03. The company’s fifty day moving average is $178.82 and its two-hundred day moving average is $154.68. Discover Financial Services has a 52-week low of $101.71 and a 52-week high of $204.93. The firm has a market capitalization of $50.66 billion, a price-to-earnings ratio of 12.63, a P/E/G ratio of 1.15 and a beta of 1.46.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a return on equity of 27.52% and a net margin of 17.29%. Equities research analysts forecast that Discover Financial Services will post 12.82 EPS for the current year.

Discover Financial Services Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be paid a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 1.39%. The ex-dividend date is Friday, May 23rd. Discover Financial Services’s payout ratio is 17.54%.

Institutional Investors Weigh In On Discover Financial Services

Several large investors have recently bought and sold shares of DFS. DiNuzzo Private Wealth Inc. raised its stake in Discover Financial Services by 506.5% during the 3rd quarter. DiNuzzo Private Wealth Inc. now owns 188 shares of the financial services provider’s stock worth $26,000 after buying an additional 157 shares during the period. Point72 Asia Singapore Pte. Ltd. bought a new position in Discover Financial Services in the third quarter valued at approximately $30,000. Grove Bank & Trust boosted its holdings in shares of Discover Financial Services by 78.1% in the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock valued at $35,000 after buying an additional 89 shares during the period. Hantz Financial Services Inc. acquired a new position in Discover Financial Services in the 4th quarter worth $37,000. Finally, Pinnacle Bancorp Inc. raised its stake in shares of Discover Financial Services by 37.1% in the 3rd quarter. Pinnacle Bancorp Inc. now owns 292 shares of the financial services provider’s stock valued at $41,000 after purchasing an additional 79 shares during the period. Institutional investors own 86.94% of the company’s stock.

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; 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.