Xponance Inc. Boosts Stock Holdings in Discover Financial Services (NYSE:DFS)

by · The Markets Daily

Xponance Inc. increased its holdings in shares of Discover Financial Services (NYSE:DFS) by 2.7% during the third quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 31,876 shares of the financial services provider’s stock after purchasing an additional 850 shares during the period. Xponance Inc.’s holdings in Discover Financial Services were worth $2,761,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. Morgan Stanley increased its holdings in shares of Discover Financial Services by 35.6% in the 4th quarter. Morgan Stanley now owns 4,927,342 shares of the financial services provider’s stock valued at $482,042,000 after acquiring an additional 1,293,260 shares during the period. Capital Research Global Investors purchased a new stake in shares of Discover Financial Services during the second quarter valued at about $495,973,000. Norges Bank acquired a new stake in Discover Financial Services in the fourth quarter valued at approximately $340,672,000. Dimensional Fund Advisors LP boosted its position in shares of Discover Financial Services by 12.8% in the 2nd quarter. Dimensional Fund Advisors LP now owns 3,323,219 shares of the financial services provider’s stock worth $388,352,000 after purchasing an additional 377,737 shares in the last quarter. Finally, Southpoint Capital Advisors LP purchased a new stake in shares of Discover Financial Services during the first quarter valued at $247,100,000. 83.63% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Stock Performance

NYSE:DFS opened at $110.33 on Friday. The firm has a 50 day simple moving average of $96.12 and a 200-day simple moving average of $97.90. The company has a debt-to-equity ratio of 1.48, a current ratio of 1.12 and a quick ratio of 1.12. The firm has a market cap of $27.59 billion, a PE ratio of 8.18, a P/E/G ratio of 2.14 and a beta of 1.44. Discover Financial Services has a 1-year low of $79.04 and a 1-year high of $122.50.

Discover Financial Services (NYSE:DFS – Get Free Report) last posted its quarterly earnings results on Thursday, October 19th. The financial services provider reported $2.59 EPS for the quarter, missing analysts’ consensus estimates of $3.18 by ($0.59). Discover Financial Services had a return on equity of 27.23% and a net margin of 18.39%. The firm had revenue of $4.04 billion during the quarter, compared to analyst estimates of $3.95 billion. During the same quarter last year, the business posted $3.54 earnings per share. The firm’s revenue for the quarter was up 16.6% on a year-over-year basis. On average, equities analysts expect that Discover Financial Services will post 12.3 EPS for the current year.

Discover Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, December 7th. Investors of record on Wednesday, November 22nd were paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 2.54%. The ex-dividend date of this dividend was Tuesday, November 21st. Discover Financial Services’s dividend payout ratio (DPR) is presently 20.77%.

Wall Street Analyst Weigh In

Several research firms recently issued reports on DFS. The Goldman Sachs Group boosted their target price on shares of Discover Financial Services from $98.00 to $110.00 and gave the company a “buy” rating in a research note on Monday, December 18th. Piper Sandler upgraded shares of Discover Financial Services from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $104.00 to $129.00 in a report on Wednesday. Bank of America raised shares of Discover Financial Services from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $94.00 to $116.00 in a research report on Wednesday, December 6th. TD Cowen initiated coverage on shares of Discover Financial Services in a research report on Wednesday, November 1st. They set an “outperform” rating and a $100.00 price target on the stock. Finally, Stephens reiterated an “equal weight” rating and issued a $98.00 price objective on shares of Discover Financial Services in a research note on Thursday, December 14th. Seven investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat, Discover Financial Services currently has an average rating of “Moderate Buy” and a consensus price target of $109.44.

Check Out Our Latest Stock Report on DFS

Discover Financial Services Profile

(Free Report)

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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