Hudson Bay Capital Management LP Increases Stock Holdings in Discover Financial Services (NYSE:DFS)

Hudson Bay Capital Management LP lifted its stake in shares of Discover Financial Services (NYSE:DFS - Free Report) by 14.5% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 306,398 shares of the financial services provider's stock after purchasing an additional 38,806 shares during the period. Hudson Bay Capital Management LP owned about 0.12% of Discover Financial Services worth $53,077,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently modified their holdings of the stock. SBI Securities Co. Ltd. acquired a new position in Discover Financial Services during the fourth quarter worth about $33,000. Flagship Wealth Advisors LLC acquired a new position in shares of Discover Financial Services in the 4th quarter worth approximately $34,000. Grove Bank & Trust boosted its position in shares of Discover Financial Services by 78.1% during the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider's stock worth $35,000 after buying an additional 89 shares during the period. Bfsg LLC acquired a new position in shares of Discover Financial Services in the fourth quarter valued at approximately $35,000. Finally, Hantz Financial Services Inc. acquired a new position in Discover Financial Services during the 4th quarter worth $37,000. Institutional investors and hedge funds own 86.94% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on DFS. Royal Bank of Canada increased their price target on Discover Financial Services from $193.00 to $210.00 and gave the company a "sector perform" rating in a research report on Friday, January 24th. Barclays lifted their price target on shares of Discover Financial Services from $186.00 to $209.00 and gave the stock an "overweight" rating in a research note on Friday, January 24th. StockNews.com cut shares of Discover Financial Services from a "buy" rating to a "hold" rating in a report on Tuesday, April 15th. JPMorgan Chase & Co. dropped their price objective on shares of Discover Financial Services from $169.00 to $129.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 8th. Finally, Wells Fargo & Company lifted their price objective on shares of Discover Financial Services from $185.00 to $214.00 and gave the stock an "equal weight" rating in a research report on Friday, January 24th. Eight analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, Discover Financial Services currently has a consensus rating of "Moderate Buy" and a consensus target price of $191.64.

Discover Financial Services Stock Performance

NYSE DFS traded up $1.63 on Friday, reaching $202.11. The stock had a trading volume of 1,541,932 shares, compared to its average volume of 1,663,698. The stock has a market cap of $50.86 billion, a P/E ratio of 12.69, a price-to-earnings-growth ratio of 1.51 and a beta of 1.16. Discover Financial Services has a 12-month low of $119.95 and a 12-month high of $207.42. The business's 50-day moving average price is $171.48 and its 200 day moving average price is $177.96. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.03 and a current ratio of 1.09.

Discover Financial Services (NYSE:DFS - Get Free Report) last released its quarterly earnings results on Wednesday, April 23rd. The financial services provider reported $4.25 EPS for the quarter, beating the consensus estimate of $3.33 by $0.92. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%. The firm had revenue of $4.25 billion during the quarter, compared to the consensus estimate of $4.25 billion. During the same quarter in the prior year, the firm earned $1.10 EPS. As a group, equities analysts expect that Discover Financial Services will post 13.88 earnings per share for the current year.

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.