Discover Financial Services (NYSE:DFS) Stock Price Up 3.9% – Here’s Why

Discover Financial Services (NYSE:DFS) shot up 3.9% during trading on Tuesday . The stock traded as high as $159.04 and last traded at $159.00. 2,779,607 shares changed hands during trading, an increase of 99% from the average session volume of 1,398,552 shares. The stock had previously closed at $152.99.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on DFS shares. Royal Bank of Canada lifted their price target on shares of Discover Financial Services from $193.00 to $210.00 and gave the company a “sector perform” rating in a research report on Friday, January 24th. Keefe, Bruyette & Woods boosted their target price on Discover Financial Services from $170.00 to $232.00 and gave the stock an “outperform” rating in a research report on Monday, December 9th. JPMorgan Chase & Co. raised their price target on Discover Financial Services from $146.00 to $169.00 and gave the company a “neutral” rating in a research report on Friday, January 24th. Wells Fargo & Company lifted their price target on Discover Financial Services from $185.00 to $214.00 and gave the stock an “equal weight” rating in a research note on Friday, January 24th. Finally, Truist Financial increased their price objective on shares of Discover Financial Services from $233.00 to $262.00 and gave the company a “buy” rating in a research note on Monday, January 27th. Eight equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $191.91.

Discover Financial Services Stock Up 3.9 %

The firm has a market cap of $39.98 billion, a price-to-earnings ratio of 9.96, a PEG ratio of 1.51 and a beta of 1.45. The firm has a fifty day moving average price of $187.16 and a 200-day moving average price of $168.39. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09.

Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%. As a group, sell-side analysts forecast that Discover Financial Services will post 13.88 EPS for the current year.

Discover Financial Services Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 1.76%. The ex-dividend date is Friday, May 23rd. Discover Financial Services’s dividend payout ratio (DPR) is presently 17.54%.

Hedge Funds Weigh In On Discover Financial Services

Several institutional investors and hedge funds have recently made changes to their positions in the business. OneDigital Investment Advisors LLC boosted its holdings in Discover Financial Services by 10.5% in the third quarter. OneDigital Investment Advisors LLC now owns 5,492 shares of the financial services provider’s stock worth $771,000 after purchasing an additional 523 shares during the period. CIBC Asset Management Inc raised its stake in Discover Financial Services by 8.5% during the third quarter. CIBC Asset Management Inc now owns 36,896 shares of the financial services provider’s stock worth $5,176,000 after acquiring an additional 2,880 shares during the period. Natixis Advisors LLC raised its stake in Discover Financial Services by 3.9% during the third quarter. Natixis Advisors LLC now owns 170,825 shares of the financial services provider’s stock worth $23,965,000 after acquiring an additional 6,364 shares during the period. TrinityPoint Wealth LLC boosted its stake in Discover Financial Services by 14.4% in the third quarter. TrinityPoint Wealth LLC now owns 3,440 shares of the financial services provider’s stock valued at $483,000 after acquiring an additional 432 shares during the period. Finally, Quest Partners LLC grew its holdings in shares of Discover Financial Services by 56.8% during the third quarter. Quest Partners LLC now owns 6,792 shares of the financial services provider’s stock valued at $953,000 after purchasing an additional 2,459 shares during the last quarter. 86.94% of the stock is currently owned by hedge funds and other institutional investors.

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; 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.