Discover Financial Services (NYSE:DFS) Releases Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Discover Financial Services (NYSE:DFS) posted its quarterly earnings results on Thursday. The financial services provider reported $3.77 earnings per share for the quarter, topping the consensus estimate of $3.66 by $0.11, RTT News reports. Discover Financial Services had a return on equity of 34.94% and a net margin of 31.90%. The firm had revenue of $3.73 billion during the quarter, compared to analysts’ expectations of $3.68 billion. During the same quarter in the previous year, the business earned $3.64 earnings per share. The company’s revenue was up 27.1% on a year-over-year basis.

Discover Financial Services Stock Performance

NYSE DFS opened at $106.14 on Friday. The firm has a market cap of $29.00 billion, a price-to-earnings ratio of 6.91, a price-to-earnings-growth ratio of 1.89 and a beta of 1.41. The company has a quick ratio of 1.26, a current ratio of 1.25 and a debt-to-equity ratio of 1.53. The business has a 50-day moving average price of $103.13 and a 200-day moving average price of $101.22. Discover Financial Services has a twelve month low of $87.64 and a twelve month high of $129.12.

Discover Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 9th. Stockholders of record on Thursday, February 23rd will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.26%. The ex-dividend date is Wednesday, February 22nd. Discover Financial Services’s dividend payout ratio (DPR) is 15.63%.

Insider Transactions at Discover Financial Services

In related news, Director Michael H. Moskow sold 1,291 shares of the stock in a transaction that occurred on Wednesday, December 7th. The stock was sold at an average price of $105.10, for a total transaction of $135,684.10. Following the completion of the transaction, the director now directly owns 51,596 shares of the company’s stock, valued at $5,422,739.60. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.59% of the company’s stock.

Hedge Funds Weigh In On Discover Financial Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DFS. First Trust Advisors LP raised its position in Discover Financial Services by 489.5% during the first quarter. First Trust Advisors LP now owns 1,999,341 shares of the financial services provider’s stock valued at $220,307,000 after purchasing an additional 1,660,180 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Discover Financial Services by 51.2% in the second quarter. Goldman Sachs Group Inc. now owns 1,636,711 shares of the financial services provider’s stock worth $154,801,000 after buying an additional 554,438 shares during the period. Royal Bank of Canada raised its holdings in shares of Discover Financial Services by 37.0% in the first quarter. Royal Bank of Canada now owns 1,121,620 shares of the financial services provider’s stock worth $123,591,000 after buying an additional 302,853 shares during the period. Alyeska Investment Group L.P. purchased a new stake in shares of Discover Financial Services in the first quarter worth approximately $8,560,000. Finally, Alliancebernstein L.P. raised its holdings in shares of Discover Financial Services by 19.3% in the third quarter. Alliancebernstein L.P. now owns 426,890 shares of the financial services provider’s stock worth $38,813,000 after buying an additional 69,030 shares during the period. 81.74% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Citigroup decreased their price target on Discover Financial Services from $115.00 to $103.00 and set a “neutral” rating for the company in a research note on Thursday, October 13th. Piper Sandler upped their price objective on Discover Financial Services from $124.00 to $133.00 and gave the company an “overweight” rating in a research report on Wednesday, October 26th. UBS Group initiated coverage on Discover Financial Services in a research report on Monday, November 21st. They set a “neutral” rating and a $120.00 price objective for the company. Barclays cut Discover Financial Services from an “overweight” rating to an “equal weight” rating and upped their price objective for the company from $115.00 to $120.00 in a research report on Friday, January 6th. Finally, Morgan Stanley reduced their price objective on Discover Financial Services from $116.00 to $115.00 and set an “overweight” rating for the company in a research report on Thursday, December 1st. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have issued a buy rating to the company. According to MarketBeat, Discover Financial Services presently has a consensus rating of “Hold” and an average price target of $118.33.

About Discover Financial Services

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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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Earnings History for Discover Financial Services (NYSE:DFS)

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