Denali Advisors LLC Trims Stake in Discover Financial Services (DFS)

Denali Advisors LLC reduced its position in Discover Financial Services (NYSE:DFS) by 12.7% in the 3rd quarter, according to its most recent filing with the SEC. The fund owned 176,856 shares of the financial services provider’s stock after selling 25,800 shares during the period. Discover Financial Services accounts for about 2.0% of Denali Advisors LLC’s holdings, making the stock its 20th biggest holding. Denali Advisors LLC owned 0.05% of Discover Financial Services worth $13,521,000 at the end of the most recent reporting period.

Several other institutional investors have also recently bought and sold shares of DFS. Sandy Spring Bank lifted its holdings in shares of Discover Financial Services by 181.5% in the 2nd quarter. Sandy Spring Bank now owns 1,689 shares of the financial services provider’s stock valued at $119,000 after purchasing an additional 1,089 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. lifted its holdings in shares of Discover Financial Services by 8,341.7% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,026 shares of the financial services provider’s stock valued at $143,000 after purchasing an additional 2,002 shares during the last quarter. Private Capital Group LLC lifted its holdings in shares of Discover Financial Services by 8,258.3% in the 1st quarter. Private Capital Group LLC now owns 2,006 shares of the financial services provider’s stock valued at $144,000 after purchasing an additional 1,982 shares during the last quarter. Edge Wealth Management LLC purchased a new stake in shares of Discover Financial Services in the 2nd quarter valued at about $155,000. Finally, Moneta Group Investment Advisors LLC lifted its holdings in shares of Discover Financial Services by 440.1% in the 2nd quarter. Moneta Group Investment Advisors LLC now owns 6,670 shares of the financial services provider’s stock valued at $157,000 after purchasing an additional 5,435 shares during the last quarter. 85.80% of the stock is owned by institutional investors and hedge funds.

Several analysts have recently weighed in on the company. Sandler O’Neill reissued a “buy” rating and issued a $87.00 target price on shares of Discover Financial Services in a report on Friday, July 27th. JPMorgan Chase & Co. raised Discover Financial Services from a “neutral” rating to an “overweight” rating in a research note on Tuesday, October 2nd. Bank of America upped their price objective on Discover Financial Services from $86.00 to $92.00 and gave the company a “buy” rating in a research note on Friday, September 21st. Zacks Investment Research downgraded Discover Financial Services from a “buy” rating to a “hold” rating in a research note on Monday, July 23rd. Finally, Wells Fargo & Co upped their price objective on Discover Financial Services from $76.00 to $82.00 and gave the company a “market perform” rating in a research note on Monday, October 1st. Eight analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $86.76.

In other news, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction that occurred on Wednesday, August 1st. The stock was sold at an average price of $71.60, for a total transaction of $268,500.00. Following the completion of the transaction, the executive vice president now directly owns 137,602 shares of the company’s stock, valued at approximately $9,852,303.20. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO David W. Nelms sold 30,000 shares of the stock in a transaction that occurred on Tuesday, September 4th. The stock was sold at an average price of $78.11, for a total value of $2,343,300.00. Following the transaction, the chief executive officer now directly owns 1,210,798 shares of the company’s stock, valued at $94,575,431.78. The disclosure for this sale can be found here. Over the last three months, insiders have sold 101,250 shares of company stock valued at $7,663,313. Company insiders own 0.81% of the company’s stock.

Shares of DFS stock opened at $77.00 on Tuesday. The company has a market cap of $26.20 billion, a PE ratio of 12.88, a price-to-earnings-growth ratio of 0.79 and a beta of 1.51. Discover Financial Services has a 12-month low of $63.31 and a 12-month high of $81.93. The company has a quick ratio of 1.49, a current ratio of 1.49 and a debt-to-equity ratio of 2.54.

Discover Financial Services (NYSE:DFS) last issued its earnings results on Thursday, July 26th. The financial services provider reported $1.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.88 by $0.03. The business had revenue of $2.60 billion during the quarter, compared to the consensus estimate of $2.63 billion. Discover Financial Services had a return on equity of 24.25% and a net margin of 19.07%. The company’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same period in the prior year, the business posted $1.40 EPS. On average, equities research analysts expect that Discover Financial Services will post 7.81 earnings per share for the current year.

Discover Financial Services declared that its Board of Directors has initiated a share repurchase program on Thursday, July 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 11.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its stock is undervalued.

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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Institutional Ownership by Quarter for Discover Financial Services (NYSE:DFS)

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