Discover Financial Services (DFS) Position Increased by Vanguard Group Inc.
Vanguard Group Inc. boosted its stake in Discover Financial Services (NYSE:DFS) by 0.9% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 25,748,479 shares of the financial services provider’s stock after buying an additional 217,535 shares during the quarter. Vanguard Group Inc. owned approximately 6.92% of Discover Financial Services worth $1,601,297,000 at the end of the most recent quarter.
Other hedge funds also recently made changes to their positions in the company. V Wealth Management LLC acquired a new stake in Discover Financial Services in the 2nd quarter valued at $101,000. FNY Managed Accounts LLC acquired a new stake in Discover Financial Services in the 1st quarter valued at $124,000. Orrstown Financial Services Inc. boosted its stake in Discover Financial Services by 16.7% in the 2nd quarter. Orrstown Financial Services Inc. now owns 2,002 shares of the financial services provider’s stock valued at $125,000 after buying an additional 286 shares in the last quarter. Perigon Wealth Management LLC boosted its stake in Discover Financial Services by 2.3% in the 1st quarter. Perigon Wealth Management LLC now owns 2,146 shares of the financial services provider’s stock valued at $147,000 after buying an additional 48 shares in the last quarter. Finally, Chicago Partners Investment Group LLC acquired a new stake in Discover Financial Services in the 2nd quarter valued at $168,000. 85.45% of the stock is currently owned by institutional investors and hedge funds.
In related news, COO Roger C. Hochschild sold 15,258 shares of the firm’s stock in a transaction on Monday, July 3rd. The stock was sold at an average price of $62.48, for a total transaction of $953,319.84. Following the completion of the transaction, the chief operating officer now directly owns 830,257 shares of the company’s stock, valued at approximately $51,874,457.36. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO David W. Nelms sold 30,000 shares of the firm’s stock in a transaction on Friday, September 1st. The stock was sold at an average price of $59.10, for a total value of $1,773,000.00. Following the transaction, the chief executive officer now directly owns 1,529,912 shares of the company’s stock, valued at $90,417,799.20. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 157,002 shares of company stock valued at $9,580,337. 0.96% of the stock is owned by corporate insiders.
Several analysts recently commented on DFS shares. Zacks Investment Research raised Discover Financial Services from a “sell” rating to a “hold” rating in a research note on Tuesday, August 29th. BidaskClub raised Discover Financial Services from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 10th. Jefferies Group LLC reaffirmed a “buy” rating and issued a $82.00 price target on shares of Discover Financial Services in a research note on Friday, June 16th. Instinet reaffirmed a “buy” rating and issued a $81.00 price target (down previously from $86.00) on shares of Discover Financial Services in a research note on Wednesday, July 12th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $75.00 price target (down previously from $81.00) on shares of Discover Financial Services in a research note on Thursday, July 6th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and fifteen have assigned a buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $73.95.
Shares of Discover Financial Services (NYSE:DFS) opened at 61.41 on Friday. Discover Financial Services has a 52-week low of $53.91 and a 52-week high of $74.33. The company has a market cap of $22.87 billion, a P/E ratio of 10.60 and a beta of 1.45. The stock’s 50 day moving average price is $59.72 and its 200-day moving average price is $62.41.
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 the Thomson Reuters’ consensus estimate of $1.45 by ($0.05). The company had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.40 billion. Discover Financial Services had a return on equity of 21.28% and a net margin of 20.91%. The firm’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the prior year, the business earned $1.47 earnings per share. Equities analysts expect that Discover Financial Services will post $5.92 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 7th. Investors of record on Thursday, August 24th were given a dividend of $0.35 per share. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a yield of 2.28%. The ex-dividend date of this dividend was Tuesday, August 22nd. Discover Financial Services’s dividend payout ratio (DPR) is currently 24.18%.
Discover Financial Services declared that its Board of Directors has initiated a stock buyback 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 repurchase up to 9.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.
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.
Want to see what other hedge funds are holding DFS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Discover Financial Services (NYSE:DFS).
Receive News & Ratings for Discover Financial Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Discover Financial Services and related companies with MarketBeat.com's FREE daily email newsletter.