Discover Financial Services (NYSE:DFS) Hits New 1-Year High Following Strong Earnings

Discover Financial Services (NYSE:DFS) hit a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $198.97 and last traded at $197.98, with a volume of 3349009 shares changing hands. The stock had previously closed at $189.26.

The financial services provider reported $5.11 earnings per share for the quarter, beating analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a net margin of 13.78% and a return on equity of 22.08%.

Discover Financial Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 6th. Stockholders of record on Thursday, February 20th will be paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.41%. Discover Financial Services’s dividend payout ratio (DPR) is 22.60%.

Analysts Set New Price Targets

A number of research firms recently commented on DFS. Keefe, Bruyette & Woods boosted their price target on Discover Financial Services from $170.00 to $232.00 and gave the stock an “outperform” rating in a report on Monday, December 9th. JPMorgan Chase & Co. lowered their target price on shares of Discover Financial Services from $150.00 to $146.00 and set a “neutral” rating on the stock in a report on Tuesday, January 14th. StockNews.com raised shares of Discover Financial Services from a “hold” rating to a “buy” rating in a research note on Thursday, January 16th. Barclays upgraded shares of Discover Financial Services from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $137.00 to $186.00 in a report on Monday, January 6th. Finally, Evercore ISI increased 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 report on Wednesday, October 30th. Nine research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat.com, Discover Financial Services currently has a consensus rating of “Moderate Buy” and an average target price of $171.71.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. UMB Bank n.a. boosted its stake in shares of Discover Financial Services by 0.6% during the 4th quarter. UMB Bank n.a. now owns 9,248 shares of the financial services provider’s stock worth $1,602,000 after purchasing an additional 56 shares during the period. Invst LLC lifted its stake in Discover Financial Services by 0.9% in the third quarter. Invst LLC now owns 7,253 shares of the financial services provider’s stock worth $1,018,000 after purchasing an additional 62 shares during the last quarter. CTC Alternative Strategies Ltd. boosted its position in shares of Discover Financial Services by 3.2% during the third quarter. CTC Alternative Strategies Ltd. now owns 2,047 shares of the financial services provider’s stock valued at $287,000 after buying an additional 63 shares during the period. Eagle Bluffs Wealth Management LLC grew its stake in shares of Discover Financial Services by 0.5% during the third quarter. Eagle Bluffs Wealth Management LLC now owns 14,501 shares of the financial services provider’s stock valued at $2,034,000 after buying an additional 67 shares during the last quarter. Finally, Perigon Wealth Management LLC grew its stake in shares of Discover Financial Services by 3.5% during the fourth quarter. Perigon Wealth Management LLC now owns 1,967 shares of the financial services provider’s stock valued at $364,000 after buying an additional 67 shares during the last quarter. 86.94% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Stock Performance

The company has a debt-to-equity ratio of 1.09, a current ratio of 1.10 and a quick ratio of 1.03. The stock has a market capitalization of $49.75 billion, a PE ratio of 15.98, a P/E/G ratio of 1.09 and a beta of 1.46. The firm has a fifty day moving average price of $177.30 and a two-hundred day moving average price of $153.37.

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.