Discover Financial Services (NYSE:DFS) Reaches New 12-Month High – What’s Next?

Shares of Discover Financial Services (NYSE:DFS) reached a new 52-week high on Tuesday . The stock traded as high as $148.49 and last traded at $148.49, with a volume of 772 shares trading hands. The stock had previously closed at $147.31.

Analyst Ratings Changes

Several brokerages recently issued reports on DFS. Barclays boosted their price target on Discover Financial Services from $135.00 to $137.00 and gave the company an “equal weight” rating in a research report on Friday, July 19th. Jefferies Financial Group upped their price target on Discover Financial Services from $145.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, July 9th. StockNews.com started coverage on shares of Discover Financial Services in a research note on Friday. They issued a “hold” rating on the stock. Royal Bank of Canada boosted their target price on Discover Financial Services from $140.00 to $148.00 and gave the stock a “sector perform” rating in a research report on Friday, July 19th. Finally, JPMorgan Chase & Co. upped their price objective on Discover Financial Services from $132.00 to $135.00 and gave the stock a “neutral” rating in a report on Friday, July 19th. Thirteen 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, the stock currently has an average rating of “Hold” and an average price target of $133.88.

Discover Financial Services Stock Performance

The company has a market capitalization of $37.00 billion, a price-to-earnings ratio of 16.80, a P/E/G ratio of 0.94 and a beta of 1.41. The stock has a 50 day simple moving average of $135.20 and a 200 day simple moving average of $130.52. The company has a quick ratio of 1.04, a current ratio of 1.12 and a debt-to-equity ratio of 1.28.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Wednesday, July 17th. The financial services provider reported $6.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.06 by $3.00. The company had revenue of $4.54 billion during the quarter, compared to analyst estimates of $4.18 billion. Discover Financial Services had a return on equity of 20.92% and a net margin of 12.88%. The firm’s quarterly revenue was up 17.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.54 EPS. As a group, analysts anticipate that Discover Financial Services will post 13.15 earnings per share for the current fiscal year.

Discover Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 5th. Investors of record on Thursday, August 22nd were given a $0.70 dividend. The ex-dividend date was Thursday, August 22nd. This represents a $2.80 annualized dividend and a dividend yield of 1.90%. Discover Financial Services’s dividend payout ratio (DPR) is presently 31.93%.

Hedge Funds Weigh In On Discover Financial Services

Institutional investors and hedge funds have recently bought and sold shares of the business. Syon Capital LLC boosted its stake in Discover Financial Services by 8.4% during the 4th quarter. Syon Capital LLC now owns 3,180 shares of the financial services provider’s stock valued at $357,000 after purchasing an additional 246 shares during the period. SageView Advisory Group LLC bought a new position in Discover Financial Services during the fourth quarter worth $250,000. HighPoint Advisor Group LLC acquired a new position in Discover Financial Services during the 4th quarter valued at $1,301,000. Nomura Holdings Inc. acquired a new stake in Discover Financial Services in the 4th quarter worth $6,825,000. Finally, Park National Corp OH grew its position in Discover Financial Services by 7.5% in the 1st quarter. Park National Corp OH now owns 3,198 shares of the financial services provider’s stock worth $419,000 after purchasing an additional 222 shares during the last quarter. Hedge funds and other institutional investors own 86.94% of the company’s stock.

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.