Hsbc Holdings PLC Reduces Holdings in Discover Financial Services (NYSE:DFS)

Hsbc Holdings PLC lowered its position in Discover Financial Services (NYSE:DFS) by 20.8% in the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 1,167,867 shares of the financial services provider’s stock after selling 307,564 shares during the quarter. Hsbc Holdings PLC owned about 0.46% of Discover Financial Services worth $202,431,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Discover Financial Services during the 4th quarter valued at approximately $724,720,000. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors purchased a new stake in shares of Discover Financial Services during the fourth quarter worth $351,766,000. Invesco Ltd. grew its position in shares of Discover Financial Services by 38.5% in the fourth quarter. Invesco Ltd. now owns 2,974,471 shares of the financial services provider’s stock valued at $515,268,000 after purchasing an additional 826,287 shares in the last quarter. Bank of Nova Scotia raised its stake in shares of Discover Financial Services by 208.9% during the 4th quarter. Bank of Nova Scotia now owns 561,405 shares of the financial services provider’s stock valued at $97,252,000 after purchasing an additional 379,673 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in Discover Financial Services by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 31,045,208 shares of the financial services provider’s stock worth $5,377,961,000 after purchasing an additional 290,937 shares in the last quarter. 86.94% of the stock is currently owned by institutional investors.

Discover Financial Services Price Performance

Shares of Discover Financial Services stock opened at $172.47 on Wednesday. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.03 and a current ratio of 1.09. Discover Financial Services has a 52-week low of $119.95 and a 52-week high of $205.76. The company has a fifty day moving average of $170.61 and a 200-day moving average of $172.98. The stock has a market capitalization of $43.39 billion, a price-to-earnings ratio of 10.81, a price-to-earnings-growth ratio of 1.51 and a beta of 1.20.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a return on equity of 26.18% and a net margin of 17.29%. Equities research analysts expect 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. Shareholders of record on Friday, May 23rd will be paid a $0.70 dividend. The ex-dividend date of this dividend is Friday, May 23rd. This represents a $2.80 dividend on an annualized basis and a yield of 1.62%. Discover Financial Services’s dividend payout ratio (DPR) is currently 17.54%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Barclays upped their price target on Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a research report on Friday, January 24th. Truist Financial lowered their target price on shares of Discover Financial Services from $262.00 to $219.00 and set a “buy” rating on the stock in a research note on Friday, March 21st. StockNews.com cut shares of Discover Financial Services from a “buy” rating to a “hold” rating in a report on Tuesday, April 15th. Wells Fargo & Company lifted their price objective on Discover Financial Services from $185.00 to $214.00 and gave the company an “equal weight” rating in a research note on Friday, January 24th. Finally, JPMorgan Chase & Co. decreased their target price on Discover Financial Services from $169.00 to $129.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 8th. Seven analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $188.40.

Discover Financial Services Company Profile

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.