Independent Advisor Alliance Invests $289,000 in Discover Financial Services (NYSE:DFS)

Independent Advisor Alliance bought a new position in Discover Financial Services (NYSE:DFS) in the fourth quarter, HoldingsChannel.com reports. The fund bought 1,668 shares of the financial services provider’s stock, valued at approximately $289,000.

A number of other hedge funds have also modified their holdings of DFS. Point72 Asia Singapore Pte. Ltd. acquired a new position in shares of Discover Financial Services in the 3rd quarter worth approximately $30,000. SBI Securities Co. Ltd. acquired a new stake in Discover Financial Services during the 4th quarter valued at $33,000. Grove Bank & Trust increased its holdings in Discover Financial Services by 78.1% during the 4th quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock valued at $35,000 after purchasing an additional 89 shares in the last quarter. Bfsg LLC acquired a new stake in Discover Financial Services during the 4th quarter valued at $35,000. Finally, Hantz Financial Services Inc. acquired a new stake in Discover Financial Services during the 4th quarter valued at $37,000. 86.94% of the stock is owned by institutional investors and hedge funds.

Discover Financial Services Stock Up 3.9 %

NYSE:DFS opened at $158.91 on Wednesday. Discover Financial Services has a 12-month low of $119.31 and a 12-month high of $205.76. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09. The firm has a market capitalization of $39.98 billion, a P/E ratio of 9.96, a P/E/G ratio of 1.51 and a beta of 1.45. The stock’s fifty day simple moving average is $186.78 and its 200-day simple moving average is $168.54.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.13 by $1.98. Discover Financial Services had a return on equity of 26.18% and a net margin of 17.29%. Equities research analysts expect that Discover Financial Services will post 13.88 earnings per share for the current year.

Discover Financial Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date of this dividend is Friday, May 23rd. This represents a $2.80 annualized dividend and a yield of 1.76%. Discover Financial Services’s dividend payout ratio is presently 17.54%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. JPMorgan Chase & Co. raised their price target on Discover Financial Services from $146.00 to $169.00 and gave the company a “neutral” rating in a report on Friday, January 24th. Keefe, Bruyette & Woods raised their price target on Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a report on Monday, December 9th. Royal Bank of Canada raised their price target on Discover Financial Services from $193.00 to $210.00 and gave the company a “sector perform” rating in a report on Friday, January 24th. Barclays lifted their target price on Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a research note on Friday, January 24th. Finally, UBS Group raised Discover Financial Services from a “neutral” rating to a “buy” rating and lifted their target price for the company from $150.00 to $239.00 in a research note on Monday, January 13th. Eight equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, Discover Financial Services has a consensus rating of “Hold” and an average target price of $191.91.

Discover Financial Services 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.