Mitsubishi UFJ Trust & Banking Corp reduced its holdings in Discover Financial Services (NYSE:DFS) by 12.1% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 235,380 shares of the financial services provider’s stock after selling 32,296 shares during the quarter. Mitsubishi UFJ Trust & Banking Corp’s holdings in Discover Financial Services were worth $27,844,000 at the end of the most recent reporting period.
Other institutional investors have also made changes to their positions in the company. Capital International Investors boosted its position in Discover Financial Services by 121.9% during the first quarter. Capital International Investors now owns 16,797,500 shares of the financial services provider’s stock valued at $1,595,619,000 after purchasing an additional 9,226,724 shares during the last quarter. Factorial Partners LLC increased its stake in shares of Discover Financial Services by 9,019.0% in the 1st quarter. Factorial Partners LLC now owns 3,191,664 shares of the financial services provider’s stock valued at $33,600,000 after purchasing an additional 3,156,664 shares during the last quarter. Capital Bank & Trust Co bought a new stake in Discover Financial Services during the 1st quarter worth $61,976,000. Morgan Stanley lifted its holdings in Discover Financial Services by 22.4% during the 1st quarter. Morgan Stanley now owns 3,105,771 shares of the financial services provider’s stock worth $295,018,000 after buying an additional 569,192 shares during the period. Finally, Nordea Investment Management AB lifted its holdings in Discover Financial Services by 96.2% during the 1st quarter. Nordea Investment Management AB now owns 1,139,219 shares of the financial services provider’s stock worth $108,955,000 after buying an additional 558,572 shares during the period. Institutional investors own 85.28% of the company’s stock.
DFS has been the subject of a number of recent research reports. Seaport Global Securities started coverage on Discover Financial Services in a report on Monday, August 30th. They set a “neutral” rating for the company. Piper Sandler reduced their price objective on Discover Financial Services from $122.00 to $118.00 and set a “neutral” rating on the stock in a research note on Friday, July 2nd. Barclays raised their price objective on shares of Discover Financial Services from $132.00 to $146.00 and gave the stock an “overweight” rating in a report on Friday, July 9th. Credit Suisse Group lifted their target price on shares of Discover Financial Services from $128.00 to $140.00 and gave the company an “outperform” rating in a report on Friday, July 2nd. Finally, Zacks Investment Research cut Discover Financial Services from a “buy” rating to a “hold” rating and set a $124.00 price target for the company. in a research note on Wednesday, July 7th. Ten equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, Discover Financial Services presently has a consensus rating of “Hold” and an average price target of $123.53.
NYSE DFS opened at $130.01 on Monday. The stock has a market capitalization of $38.93 billion, a P/E ratio of 8.32, a P/E/G ratio of 0.13 and a beta of 1.84. Discover Financial Services has a 52-week low of $52.61 and a 52-week high of $135.69. The firm has a 50-day moving average price of $126.07 and a 200 day moving average price of $116.51. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.60.
Discover Financial Services (NYSE:DFS) last released its quarterly earnings results on Tuesday, July 20th. The financial services provider reported $5.55 EPS for the quarter, beating the consensus estimate of $3.68 by $1.87. Discover Financial Services had a net margin of 36.50% and a return on equity of 46.03%. The business had revenue of $3.58 billion for the quarter, compared to analyst estimates of $3.01 billion. During the same period in the prior year, the business earned ($1.20) earnings per share. The company’s quarterly revenue was up 34.4% on a year-over-year basis. On average, equities research analysts expect that Discover Financial Services will post 16.9 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Thursday, September 2nd. Shareholders of record on Thursday, August 19th were paid a dividend of $0.50 per share. The ex-dividend date of this dividend was Wednesday, August 18th. This represents a $2.00 dividend on an annualized basis and a yield of 1.54%. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.44. Discover Financial Services’s dividend payout ratio (DPR) is currently 55.56%.
Discover Financial Services announced that its Board of Directors has authorized a share buyback program on Wednesday, July 21st that permits the company to repurchase $2.40 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 6.4% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.
About Discover Financial Services
Discover Financial Services is a holding company, which engages in the provision of direct banking and payment services. It operates through the Direct Banking and Payment Services segments. The Direct Banking segment offers Discover-branded credit cards issued to individuals on the Discover Network and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending and deposit products.
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