Cibc World Market Inc. Acquires 1,314 Shares of Discover Financial Services (NYSE:DFS)

06 Dec 2023, 14:06 by Kim Johansen · The Markets Daily

Cibc World Market Inc. boosted its position in Discover Financial Services (NYSE:DFS) by 25.8% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 6,406 shares of the financial services provider’s stock after purchasing an additional 1,314 shares during the period. Cibc World Market Inc.’s holdings in Discover Financial Services were worth $749,000 as of its most recent SEC filing.

Several other institutional investors have also bought and sold shares of the company. Boston Partners lifted its stake in Discover Financial Services by 35.2% in the first quarter. Boston Partners now owns 5,577,851 shares of the financial services provider’s stock valued at $551,386,000 after purchasing an additional 1,452,811 shares during the last quarter. Morgan Stanley lifted its stake in Discover Financial Services by 35.6% in the fourth quarter. Morgan Stanley now owns 4,927,342 shares of the financial services provider’s stock valued at $482,042,000 after purchasing an additional 1,293,260 shares during the last quarter. Capital Research Global Investors purchased a new position in Discover Financial Services in the second quarter valued at approximately $495,973,000. Norges Bank purchased a new position in Discover Financial Services in the fourth quarter valued at approximately $340,672,000. Finally, Dimensional Fund Advisors LP lifted its stake in Discover Financial Services by 12.8% in the second quarter. Dimensional Fund Advisors LP now owns 3,323,219 shares of the financial services provider’s stock valued at $388,352,000 after purchasing an additional 377,737 shares during the last quarter. Hedge funds and other institutional investors own 83.63% of the company’s stock.

Analyst Upgrades and Downgrades

DFS has been the topic of several research analyst reports. HSBC began coverage on Discover Financial Services in a research note on Friday, October 13th. They issued a “buy” rating and a $104.00 price objective on the stock. JPMorgan Chase & Co. cut their price target on Discover Financial Services from $112.00 to $99.00 and set a “neutral” rating for the company in a report on Tuesday, October 17th. Barclays initiated coverage on Discover Financial Services in a report on Wednesday, November 15th. They issued an “equal weight” rating and a $99.00 price target for the company. The Goldman Sachs Group cut their price target on Discover Financial Services from $109.00 to $103.00 in a report on Monday, October 2nd. Finally, Piper Sandler cut their price target on Discover Financial Services from $100.00 to $96.00 and set a “neutral” rating for the company in a report on Friday, October 20th. Ten equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $103.56.

View Our Latest Analysis on Discover Financial Services

Discover Financial Services Trading Up 4.6 %

NYSE DFS opened at $99.08 on Wednesday. The stock’s 50-day simple moving average is $86.84 and its two-hundred day simple moving average is $97.79. Discover Financial Services has a twelve month low of $79.04 and a twelve month high of $122.50. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 1.48. The company has a market capitalization of $24.78 billion, a price-to-earnings ratio of 7.35, a PEG ratio of 1.87 and a beta of 1.44.

Discover Financial Services (NYSE:DFS – Get Free Report) last released its quarterly earnings results on Thursday, October 19th. The financial services provider reported $2.59 earnings per share for the quarter, missing analysts’ consensus estimates of $3.18 by ($0.59). Discover Financial Services had a net margin of 18.39% and a return on equity of 27.23%. The firm had revenue of $4.04 billion for the quarter, compared to analysts’ expectations of $3.95 billion. During the same quarter in the previous year, the business earned $3.54 EPS. The company’s revenue for the quarter was up 16.6% on a year-over-year basis. Research analysts forecast that Discover Financial Services will post 12.32 EPS for the current fiscal year.

Discover Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 7th. Stockholders of record on Wednesday, November 22nd will be issued a $0.70 dividend. The ex-dividend date of this dividend is Tuesday, November 21st. This represents a $2.80 annualized dividend and a dividend yield of 2.83%. Discover Financial Services’s dividend payout ratio is currently 20.77%.

Discover Financial Services Profile

(Free Report)

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; private student loans, 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.

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