According to information provided by Stock Target Advisor, Credit Suisse Group raised its price target for Discover Financial Services (NYSE:DFS) in a report released on Thursday from $123.00 to $127,000. Currently, shares of the financial services company are given an “outperform” rating by the brokerage. Additionally, the price target provided by Credit Suisse Group indicates that there is an 18.60% upside potential from the company’s current price.
In recent months, several brokerages have released statements about DFS. The price target that Bank of America has set for Discover Financial Services has dropped from $128.00 to $120.00 due to a July 24 report. JPMorgan Chase & Co. lowered its price target on Discover Financial Services from $113.00 to $109.00 and assigned the stock a “neutral” rating in a report released Tuesday, October 18. Citigroup lowered its price target on Discover Financial Services from $115.00 to $103.00 and gave the stock a “neutral” rating in a research note released Thursday, October 13. Deutsche Bank Aktiengesellschaft lowered its price target on Discover Financial Services in a research note published Friday, July 22. The new price target is $140.00, down from the previous price target of $150.00. Finally, in a research note released Thursday, October 13, Barclays lowered Discover Financial Services’ price target from $133.00 to $115.00 while maintaining an “overweight” rating on the stock. A total of six equity research analysts recommend buying the stock, while five recommend sticking with it. According to information from Bloomberg.com, Discover Financial Services’ current rating is “Hold” and the consensus price target for the company is $118.08.
On Thursday, shares of NYSE:DFS rose $0.96 to a price of $107.08. The number of shares that changed hands was 27,914, against an average volume of 1,720,611. The stock now has a 50-day simple moving average of $98.19, and the simple moving average for the last 200 days is $101.54. The price/earnings ratio of Discover Financial Services is 6.99; the price to growth ratio for Discover Financial Services is 1.69 and the beta for Discover Financial Services is 1.41. There is a ratio of 1.53 debt to equity, a ratio of 1.25 to current assets and a ratio of 1.26 to fast assets.
On Monday, October 24, Discover Financial Services (NYSE: DFS) released its latest quarterly earnings report to the public. The financial services company reported earnings per share for the quarter at $3.54, $0.18 below the consensus estimate of $3.72 among market analysts. Compared to the consensus estimate of $3.40 billion among market experts, the company’s quarterly sales came in at $3.48 billion. Discover Financial Services’ net margin was 31.90% and the company’s return on equity was 34.94%. Additionally, the company’s annual quarterly sales growth rate was 25.3% higher than the previous year. The previous year, during the same period, the company had generated earnings of $3.54 per share. According to estimates provided by sell-side analysts, Discover Financial Services will earn 15.32 cents of earnings per share in the current fiscal year.
Recently, several major institutional investors have changed their stakes in DFS. In the first three months of the year, First Trust Advisors LP increased its holdings in Discover Financial Services by 489.5%. First Trust Advisors LP now owns a total of 1,999,341 shares of the financial services provider, which represents a total of $220,307,000 following the acquisition of 1,660,180 additional shares during the last quarter. Additionally, a 51.2% increase in Goldman Sachs Group Inc.’s ownership interest in Discover Financial Services was achieved during the company’s second fiscal quarter. Following the acquisition of an additional 554,438 shares during the last fiscal quarter, Goldman Sachs Group Inc. now owns a total of 1,636,711 shares held by the financial services provider, which have a value of $154,801,000. BlackRock Inc. increased its stake in Discover Financial Services by 1.7% during the first fiscal quarter. BlackRock Inc. now owns 20,961,715 shares of the financial services provider, which are worth $2,309,769,000 after the company made an additional purchase of 351,679 shares last quarter. Additionally, Discover Financial Services benefited from a 40.4% increase in Sumitomo Mitsui Trust Holdings Inc.’s investment in the company during the second quarter. After purchasing an additional 344,578 shares in the previous quarter, Sumitomo Mitsui Trust Holdings Inc. now owns 1,198,287 shares held by the financial services provider, with a total value of $113,334,000.
Last but not least, in the first three months of the year, Royal Bank of Canada increased its holdings in Discover Financial Services by 37.0%. Following the acquisition of an additional 302,853 shares in the last fiscal quarter, Royal Bank of Canada now has a total of 1,121,620 shares held by the financial services provider. The value of these assets is equal to $123,591,000. Currently, institutional investors hold 83.92% of the company’s shares.
Discover Financial Services subsidiaries in the United States offer a variety of digital banking payment processing products, services and options. It operates in digital banking and payment services, two distinct business segments. Through the digital banking segment, individuals can obtain Discover-branded credit cards, private student loans, personal loans, home loans, and other forms of consumer loans. In addition, individuals have access to direct-to-consumer deposit products including savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings and checking accounts, and transfer accounts.