Renaissance Technologies LLC Boosts Position in Discover Financial Services (DFS)
Renaissance Technologies LLC increased its holdings in shares of Discover Financial Services (NYSE:DFS) by 233.7% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,939,400 shares of the financial services provider’s stock after acquiring an additional 1,358,300 shares during the period. Renaissance Technologies LLC owned approximately 0.52% of Discover Financial Services worth $120,611,000 at the end of the most recent reporting period.
Other large investors have also bought and sold shares of the company. V Wealth Management LLC bought a new stake in Discover Financial Services during the second quarter worth about $101,000. FNY Managed Accounts LLC bought a new stake in Discover Financial Services during the first quarter worth about $124,000. Orrstown Financial Services Inc. boosted its stake in Discover Financial Services by 16.7% during the second quarter. Orrstown Financial Services Inc. now owns 2,002 shares of the financial services provider’s stock worth $125,000 after acquiring an additional 286 shares in the last quarter. Perigon Wealth Management LLC boosted its stake in Discover Financial Services by 2.3% during the first quarter. Perigon Wealth Management LLC now owns 2,146 shares of the financial services provider’s stock worth $147,000 after acquiring an additional 48 shares in the last quarter. Finally, Financial Architects Inc boosted its stake in Discover Financial Services by 65.1% during the second quarter. Financial Architects Inc now owns 2,600 shares of the financial services provider’s stock worth $162,000 after acquiring an additional 1,025 shares in the last quarter. 85.45% of the stock is currently owned by institutional investors and hedge funds.
Several equities research analysts recently commented on the stock. Jefferies Group LLC reissued a “buy” rating and set a $75.00 price objective (down previously from $82.00) on shares of Discover Financial Services in a research note on Thursday, July 27th. Zacks Investment Research lowered shares of Discover Financial Services from a “hold” rating to a “sell” rating in a research note on Monday, July 31st. BidaskClub cut shares of Discover Financial Services from a “hold” rating to a “sell” rating in a report on Tuesday, August 1st. Barclays PLC reaffirmed an “equal weight” rating and issued a $70.00 target price (down from $79.00) on shares of Discover Financial Services in a report on Thursday, July 13th. Finally, Morgan Stanley decreased their target price on shares of Discover Financial Services from $71.00 to $70.00 and set an “overweight” rating for the company in a report on Friday, September 8th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and fifteen have issued a buy rating to the company’s stock. Discover Financial Services presently has an average rating of “Buy” and a consensus target price of $73.95.
In other Discover Financial Services news, CEO David W. Nelms sold 30,000 shares of the firm’s stock in a transaction that occurred on Friday, September 1st. The shares were sold at an average price of $59.10, for a total transaction of $1,773,000.00. Following the completion of the transaction, the chief executive officer now directly owns 1,529,912 shares of the company’s stock, valued at approximately $90,417,799.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Kathryn Mcnamara Corley sold 4,000 shares of the firm’s stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $59.63, for a total transaction of $238,520.00. Following the transaction, the executive vice president now directly owns 150,744 shares of the company’s stock, valued at $8,988,864.72. The disclosure for this sale can be found here. Insiders have sold a total of 157,002 shares of company stock valued at $9,580,337 over the last three months. 0.96% of the stock is currently owned by insiders.
Shares of Discover Financial Services (NYSE DFS) opened at 61.94 on Tuesday. Discover Financial Services has a one year low of $53.91 and a one year high of $74.33. The stock has a market capitalization of $23.06 billion, a PE ratio of 10.69 and a beta of 1.45. The firm’s 50-day moving average is $59.72 and its 200-day moving average is $62.41.
Discover Financial Services (NYSE:DFS) last posted its quarterly 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). Discover Financial Services had a return on equity of 21.28% and a net margin of 20.91%. The business had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.40 billion. During the same period in the prior year, the business posted $1.47 earnings per share. The business’s quarterly revenue was up 9.2% compared to the same quarter last year. On average, analysts expect that Discover Financial Services will post $5.92 earnings per share for the current fiscal year.
Discover Financial Services declared that its board has initiated a share repurchase program on Wednesday, June 28th that allows the company to buyback $2.23 billion in shares. This buyback authorization allows the financial services provider to purchase up to 9.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 7th. Shareholders of record on Thursday, August 24th were given a dividend of $0.35 per share. The ex-dividend date of this dividend was Tuesday, August 22nd. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.30. This represents a $1.40 dividend on an annualized basis and a yield of 2.26%. Discover Financial Services’s dividend payout ratio (DPR) is currently 24.18%.
Discover Financial Services Profile
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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