Oppenheimer Lowers Discover Financial Services (DFS) to Market Perform

Oppenheimer cut shares of Discover Financial Services (NYSE:DFS) from an outperform rating to a market perform rating in a research note published on Tuesday, Briefing.com Automated Import reports. Oppenheimer also issued estimates for Discover Financial Services’ Q4 2019 earnings at $2.29 EPS and FY2020 earnings at $9.55 EPS.

A number of other research analysts have also recently issued reports on DFS. Zacks Investment Research raised shares of Discover Financial Services from a hold rating to a buy rating and set a $78.00 price objective on the stock in a research note on Wednesday, March 27th. Goldman Sachs Group raised shares of Discover Financial Services from a neutral rating to a buy rating and boosted their target price for the stock from $51.00 to $56.00 in a research note on Friday, May 3rd. Royal Bank of Canada initiated coverage on shares of Discover Financial Services in a research note on Friday, May 3rd. They set an outperform rating and a $96.00 target price on the stock. Compass Point set a $74.00 target price on shares of Discover Financial Services and gave the stock a hold rating in a research note on Friday, January 25th. Finally, BMO Capital Markets boosted their target price on shares of Discover Financial Services to $92.00 and gave the stock a market perform rating in a research note on Monday, April 29th. Eight research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Discover Financial Services presently has an average rating of Buy and a consensus target price of $81.81.

Shares of NYSE:DFS opened at $79.46 on Tuesday. The company has a market capitalization of $25.57 billion, a P/E ratio of 10.20, a PEG ratio of 1.20 and a beta of 1.64. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 2.46. Discover Financial Services has a 1 year low of $54.36 and a 1 year high of $82.51.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings data on Thursday, April 25th. The financial services provider reported $2.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.02 by $0.13. The business had revenue of $2.76 billion for the quarter, compared to analysts’ expectations of $2.76 billion. Discover Financial Services had a net margin of 20.98% and a return on equity of 26.34%. The firm’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same period last year, the firm posted $1.82 earnings per share. As a group, equities analysts predict that Discover Financial Services will post 8.76 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 6th. Stockholders of record on Friday, May 24th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, May 23rd. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.01%. Discover Financial Services’s dividend payout ratio (DPR) is presently 20.54%.

In other news, Director Michael H. Moskow sold 1,985 shares of Discover Financial Services stock in a transaction on Friday, May 3rd. The shares were sold at an average price of $81.53, for a total transaction of $161,837.05. Following the transaction, the director now owns 48,042 shares in the company, valued at $3,916,864.26. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider David W. Nelms sold 29,300 shares of Discover Financial Services stock in a transaction on Friday, March 1st. The stock was sold at an average price of $72.46, for a total transaction of $2,123,078.00. Following the transaction, the insider now owns 970,891 shares in the company, valued at approximately $70,350,761.86. The disclosure for this sale can be found here. In the last quarter, insiders have sold 84,673 shares of company stock worth $6,577,466. 0.81% of the stock is owned by company insiders.

Several large investors have recently modified their holdings of the company. Glassman Wealth Services lifted its holdings in shares of Discover Financial Services by 10.2% during the first quarter. Glassman Wealth Services now owns 3,873 shares of the financial services provider’s stock worth $276,000 after purchasing an additional 359 shares during the period. GAM Holding AG lifted its holdings in Discover Financial Services by 4.9% in the first quarter. GAM Holding AG now owns 15,498 shares of the financial services provider’s stock valued at $1,103,000 after buying an additional 722 shares during the period. MML Investors Services LLC lifted its holdings in Discover Financial Services by 17.7% in the first quarter. MML Investors Services LLC now owns 39,573 shares of the financial services provider’s stock valued at $2,816,000 after buying an additional 5,938 shares during the period. Intrust Bank NA lifted its holdings in Discover Financial Services by 2.5% in the first quarter. Intrust Bank NA now owns 18,832 shares of the financial services provider’s stock valued at $1,340,000 after buying an additional 454 shares during the period. Finally, Argent Capital Management LLC lifted its holdings in Discover Financial Services by 57.3% in the first quarter. Argent Capital Management LLC now owns 13,043 shares of the financial services provider’s stock valued at $928,000 after buying an additional 4,752 shares during the period. Institutional investors own 86.74% of the company’s stock.

About Discover Financial Services

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.

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Analyst Recommendations for Discover Financial Services (NYSE:DFS)

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