Coldstream Capital Management Inc. Boosts Stock Position in Discover Financial Services (NYSE:DFS)

Coldstream Capital Management Inc. boosted its holdings in shares of Discover Financial Services (NYSE:DFS) by 9.3% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 5,521 shares of the financial services provider’s stock after acquiring an additional 468 shares during the quarter. Coldstream Capital Management Inc.’s holdings in Discover Financial Services were worth $621,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Boston Partners lifted its holdings in shares of Discover Financial Services by 56.5% in the 3rd quarter. Boston Partners now owns 8,597,250 shares of the financial services provider’s stock worth $743,663,000 after buying an additional 3,102,119 shares during the period. Norges Bank bought a new position in shares of Discover Financial Services in the 4th quarter worth $322,199,000. Truist Financial Corp increased its position in Discover Financial Services by 239.6% during the 4th quarter. Truist Financial Corp now owns 2,027,686 shares of the financial services provider’s stock valued at $227,912,000 after buying an additional 1,430,637 shares in the last quarter. Massachusetts Financial Services Co. MA acquired a new position in Discover Financial Services during the 4th quarter valued at about $121,113,000. Finally, Palestra Capital Management LLC acquired a new position in Discover Financial Services during the 3rd quarter valued at about $81,865,000. Hedge funds and other institutional investors own 86.94% of the company’s stock.

Discover Financial Services Price Performance

Shares of Discover Financial Services stock opened at $124.30 on Thursday. The business has a 50 day simple moving average of $125.09 and a two-hundred day simple moving average of $112.35. Discover Financial Services has a 12 month low of $79.04 and a 12 month high of $131.65. The stock has a market capitalization of $31.15 billion, a P/E ratio of 14.17, a PEG ratio of 0.76 and a beta of 1.43. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.12 and a quick ratio of 1.12.

Discover Financial Services (NYSE:DFS) last announced its earnings results on Thursday, April 18th. The financial services provider reported $1.10 EPS for the quarter, missing analysts’ consensus estimates of $2.98 by ($1.88). Discover Financial Services had a net margin of 10.56% and a return on equity of 17.07%. The firm had revenue of $4.21 billion for the quarter, compared to analyst estimates of $4.07 billion. During the same period in the previous year, the company earned $3.58 EPS. As a group, analysts predict that Discover Financial Services will post 11.48 EPS for the current fiscal year.

Discover Financial Services Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 6th. Investors of record on Thursday, May 23rd will be issued a $0.70 dividend. The ex-dividend date of this dividend is Wednesday, May 22nd. This represents a $2.80 annualized dividend and a dividend yield of 2.25%. Discover Financial Services’s dividend payout ratio is presently 31.93%.

Wall Street Analyst Weigh In

Several analysts have weighed in on DFS shares. Royal Bank of Canada reiterated a “sector perform” rating and set a $140.00 price target (up previously from $117.00) on shares of Discover Financial Services in a research note on Wednesday, February 21st. Wolfe Research restated a “peer perform” rating on shares of Discover Financial Services in a research note on Wednesday, February 21st. HSBC upped their target price on Discover Financial Services from $107.00 to $144.00 and gave the stock a “hold” rating in a research note on Thursday, March 21st. Piper Sandler upped their target price on Discover Financial Services from $127.00 to $145.00 and gave the stock an “overweight” rating in a research note on Friday, February 23rd. Finally, Barclays upped their target price on Discover Financial Services from $120.00 to $123.00 and gave the stock an “equal weight” rating in a research note on Friday, April 19th. Twelve analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $126.29.

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; 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.