Trexquant Investment LP Has $803,000 Stake in Discover Financial Services (DFS)
Trexquant Investment LP cut its stake in Discover Financial Services (NYSE:DFS) by 49.3% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 12,906 shares of the financial services provider’s stock after selling 12,554 shares during the period. Trexquant Investment LP’s holdings in Discover Financial Services were worth $803,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Rothschild Investment Corp IL increased its position in shares of Discover Financial Services by 0.3% in the first quarter. Rothschild Investment Corp IL now owns 93,311 shares of the financial services provider’s stock valued at $6,382,000 after buying an additional 325 shares during the last quarter. Huntington National Bank increased its position in shares of Discover Financial Services by 1.5% in the first quarter. Huntington National Bank now owns 5,257 shares of the financial services provider’s stock worth $359,000 after buying an additional 80 shares during the last quarter. Oakbrook Investments LLC increased its position in shares of Discover Financial Services by 4.5% in the first quarter. Oakbrook Investments LLC now owns 33,612 shares of the financial services provider’s stock worth $2,299,000 after buying an additional 1,450 shares during the last quarter. Quotient Investors LLC bought a new position in shares of Discover Financial Services during the first quarter worth about $650,000. Finally, Whitnell & Co. increased its position in shares of Discover Financial Services by 7.1% in the first quarter. Whitnell & Co. now owns 14,372 shares of the financial services provider’s stock worth $983,000 after buying an additional 953 shares during the last quarter. 86.76% of the stock is currently owned by institutional investors.
Discover Financial Services (DFS) opened at 60.10 on Friday. Discover Financial Services has a 12 month low of $53.91 and a 12 month high of $74.33. The stock has a market capitalization of $22.38 billion, a PE ratio of 10.37 and a beta of 1.46. The company’s 50-day moving average price is $61.30 and its 200 day moving average price is $64.59.
Discover Financial Services (NYSE:DFS) last announced its earnings results on Wednesday, July 26th. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.45 by $0.05. The firm had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.40 billion. Discover Financial Services had a net margin of 20.91% and a return on equity of 21.28%. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same period last year, the company earned $1.47 earnings per share. On average, analysts forecast that Discover Financial Services will post $5.93 earnings per share for the current fiscal year.
Discover Financial Services announced that its board has authorized a share repurchase program on Wednesday, June 28th that authorizes the company to buyback $2.23 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 9.5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.
The company also recently announced a quarterly dividend, which will be paid on Thursday, September 7th. Investors of record on Thursday, August 24th will be given a $0.35 dividend. The ex-dividend date of this dividend is Tuesday, August 22nd. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.30. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.33%. Discover Financial Services’s dividend payout ratio is 20.73%.
A number of analysts have recently commented on the stock. Instinet restated a “buy” rating and set a $86.00 target price (down previously from $88.00) on shares of Discover Financial Services in a report on Saturday, April 29th. BidaskClub upgraded shares of Discover Financial Services from a “sell” rating to a “hold” rating in a research note on Tuesday, June 20th. Royal Bank Of Canada reiterated a “buy” rating and issued a $82.00 price target on shares of Discover Financial Services in a research note on Tuesday, May 16th. Evercore ISI lowered their target price on shares of Discover Financial Services from $79.00 to $78.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 26th. Finally, Oppenheimer Holdings, Inc. set a $69.00 target price on shares of Discover Financial Services and gave the company a “buy” rating in a research note on Wednesday, July 26th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and seventeen have given a buy rating to the stock. Discover Financial Services presently has a consensus rating of “Buy” and an average price target of $74.21.
In other Discover Financial Services news, EVP Carlos Minetti sold 8,000 shares of the stock in a transaction that occurred on Monday, July 3rd. The stock was sold at an average price of $62.42, for a total transaction of $499,360.00. Following the completion of the sale, the executive vice president now directly owns 205,149 shares of the company’s stock, valued at approximately $12,805,400.58. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Roger C. Hochschild sold 15,258 shares of the stock in a transaction that occurred on Monday, July 3rd. The stock was sold at an average price of $62.48, for a total value of $953,319.84. Following the sale, the chief operating officer now directly owns 830,257 shares of the company’s stock, valued at $51,874,457.36. The disclosure for this sale can be found here. Over the last three months, insiders sold 107,744 shares of company stock valued at $6,658,830. Insiders own 0.96% of the company’s stock.
About Discover Financial Services
Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.
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