Wells Fargo & Company Forecasts Strong Price Appreciation for Discover Financial Services (NYSE:DFS) Stock

Discover Financial Services (NYSE:DFS) had its target price upped by Wells Fargo & Company from $160.00 to $185.00 in a research report report published on Friday morning,Benzinga reports. They currently have an equal weight rating on the financial services provider’s stock.

Several other research firms also recently commented on DFS. Royal Bank of Canada upped their price objective on shares of Discover Financial Services from $148.00 to $161.00 and gave the company a “sector perform” rating in a report on Friday, October 18th. StockNews.com cut shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research note on Monday, November 4th. Evercore ISI lifted their price objective on shares of Discover Financial Services from $156.00 to $163.00 and gave the company an “in-line” rating in a research note on Wednesday, October 30th. Keefe, Bruyette & Woods increased their target price on Discover Financial Services from $170.00 to $232.00 and gave the stock an “outperform” rating in a research report on Monday, December 9th. Finally, JPMorgan Chase & Co. raised their price target on Discover Financial Services from $135.00 to $150.00 and gave the stock a “neutral” rating in a report on Monday, December 9th. Twelve equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $151.36.

Discover Financial Services Trading Up 1.1 %

NYSE:DFS opened at $176.06 on Friday. Discover Financial Services has a 12 month low of $96.46 and a 12 month high of $188.26. The company has a current ratio of 1.08, a quick ratio of 1.04 and a debt-to-equity ratio of 1.28. The firm’s 50 day moving average is $172.33 and its 200 day moving average is $148.32. The stock has a market capitalization of $44.23 billion, a PE ratio of 14.21, a price-to-earnings-growth ratio of 1.13 and a beta of 1.45.

Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, October 16th. The financial services provider reported $3.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.28 by $0.41. Discover Financial Services had a return on equity of 21.38% and a net margin of 13.78%. The business had revenue of $5.91 billion during the quarter, compared to the consensus estimate of $4.36 billion. During the same period last year, the business posted $2.59 earnings per share. Sell-side analysts expect that Discover Financial Services will post 13.43 earnings per share for the current year.

Discover Financial Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, December 5th. Shareholders of record on Thursday, November 21st were given a dividend of $0.70 per share. The ex-dividend date was Thursday, November 21st. This represents a $2.80 annualized dividend and a yield of 1.59%. Discover Financial Services’s payout ratio is presently 22.60%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DFS. DiNuzzo Private Wealth Inc. lifted its stake in Discover Financial Services by 506.5% during the third quarter. DiNuzzo Private Wealth Inc. now owns 188 shares of the financial services provider’s stock worth $26,000 after purchasing an additional 157 shares during the last quarter. Y.D. More Investments Ltd boosted its stake in Discover Financial Services by 147.8% in the second quarter. Y.D. More Investments Ltd now owns 223 shares of the financial services provider’s stock worth $29,000 after buying an additional 133 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. bought a new position in Discover Financial Services during the third quarter valued at approximately $30,000. Larson Financial Group LLC raised its stake in shares of Discover Financial Services by 348.2% during the second quarter. Larson Financial Group LLC now owns 251 shares of the financial services provider’s stock worth $33,000 after acquiring an additional 195 shares in the last quarter. Finally, Pinnacle Bancorp Inc. lifted its holdings in shares of Discover Financial Services by 37.1% in the 3rd quarter. Pinnacle Bancorp Inc. now owns 292 shares of the financial services provider’s stock worth $41,000 after acquiring an additional 79 shares during the last quarter. 86.94% of the stock is currently owned by hedge funds and other institutional investors.

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; 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.