Discover Financial Services (NYSE:DFS) Receives $126.29 Average Price Target from Analysts

Shares of Discover Financial Services (NYSE:DFS) have received an average recommendation of “Hold” from the eighteen brokerages that are currently covering the firm, MarketBeat Ratings reports. Eleven equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $126.29.

Several equities analysts have issued reports on DFS shares. StockNews.com started coverage on shares of Discover Financial Services in a research note on Friday, April 26th. They issued a “hold” rating for the company. Royal Bank of Canada restated a “sector perform” rating and issued a $140.00 price objective (up previously from $117.00) on shares of Discover Financial Services in a research note on Wednesday, February 21st. Wolfe Research restated a “peer perform” rating on shares of Discover Financial Services in a research note on Wednesday, February 21st. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Discover Financial Services from $140.00 to $111.00 and set a “hold” rating for the company in a research note on Friday, January 19th. Finally, Piper Sandler upped their price objective on shares of Discover Financial Services from $127.00 to $145.00 and gave the company an “overweight” rating in a research note on Friday, February 23rd.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Partnership Wealth Management LLC purchased a new position in Discover Financial Services during the fourth quarter worth about $25,000. Bruce G. Allen Investments LLC purchased a new position in Discover Financial Services in the fourth quarter valued at about $28,000. MeadowBrook Investment Advisors LLC purchased a new position in Discover Financial Services in the fourth quarter valued at about $31,000. Riverview Trust Co purchased a new position in Discover Financial Services in the first quarter valued at about $34,000. Finally, Turtle Creek Wealth Advisors LLC purchased a new position in Discover Financial Services in the fourth quarter valued at about $35,000. 86.94% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Stock Performance

NYSE:DFS opened at $123.58 on Friday. The firm has a market capitalization of $30.96 billion, a PE ratio of 14.09, a price-to-earnings-growth ratio of 0.77 and a beta of 1.45. The business’s fifty day moving average price is $124.25 and its 200 day moving average price is $108.13. The company has a debt-to-equity ratio of 1.49, a current ratio of 1.05 and a quick ratio of 1.13. Discover Financial Services has a 12 month low of $79.04 and a 12 month high of $131.65.

Discover Financial Services (NYSE:DFS) last posted its 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 16.74%. During the same period last year, the company earned $3.58 EPS. On average, sell-side analysts anticipate that Discover Financial Services will post 11.39 earnings per share for the current fiscal year.

Discover Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 6th. Investors of record on Thursday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date of this dividend is Wednesday, May 22nd. This represents a $2.80 annualized dividend and a yield of 2.27%. Discover Financial Services’s dividend payout ratio is currently 31.93%.

About Discover Financial Services

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.