Pentwater Capital Management LP Invests $92.68 Million in Discover Financial Services (NYSE:DFS)

Pentwater Capital Management LP acquired a new position in Discover Financial Services (NYSE:DFS - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 535,000 shares of the financial services provider's stock, valued at approximately $92,678,000. Discover Financial Services accounts for about 1.0% of Pentwater Capital Management LP's portfolio, making the stock its 10th biggest position. Pentwater Capital Management LP owned about 0.21% of Discover Financial Services at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in DFS. SBI Securities Co. Ltd. bought a new stake in shares of Discover Financial Services in the 4th quarter valued at $33,000. Flagship Wealth Advisors LLC bought a new stake in Discover Financial Services during the fourth quarter valued at $34,000. Grove Bank & Trust grew 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 worth $35,000 after acquiring an additional 89 shares during the period. Bfsg LLC bought a new position in shares of Discover Financial Services in the 4th quarter worth about $35,000. Finally, Hantz Financial Services Inc. acquired a new position in shares of Discover Financial Services in the 4th quarter valued at about $37,000. 86.94% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have weighed in on DFS. JPMorgan Chase & Co. lowered their target price on Discover Financial Services from $169.00 to $129.00 and set a "neutral" rating for the company in a report on Tuesday, April 8th. TD Securities lowered their price objective on shares of Discover Financial Services from $188.00 to $184.00 and set a "buy" rating for the company in a research note on Thursday, April 24th. Wells Fargo & Company increased their target price on shares of Discover Financial Services from $185.00 to $214.00 and gave the stock an "equal weight" rating in a research note on Friday, January 24th. Barclays lifted their price target on shares of 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, Argus upgraded Discover Financial Services to a "strong-buy" rating in a research note on Friday, April 25th. Seven research analysts have rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $188.91.

Discover Financial Services Stock Up 4.2 %

Discover Financial Services stock traded up $7.70 during trading on Friday, hitting $190.25. 1,867,818 shares of the company were exchanged, compared to its average volume of 1,623,953. The company has a market capitalization of $47.87 billion, a P/E ratio of 11.92, a PEG ratio of 1.51 and a beta of 1.20. The business's 50 day moving average is $168.82 and its 200 day moving average is $175.20. Discover Financial Services has a 52 week low of $119.95 and a 52 week high of $205.76. The company has a current ratio of 1.09, a quick ratio of 1.03 and a debt-to-equity ratio of 1.09.

Discover Financial Services (NYSE:DFS - Get Free Report) last posted its earnings results on Wednesday, April 23rd. The financial services provider reported $4.25 earnings per share (EPS) for the quarter, topping 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 analyst estimates of $4.25 billion. During the same quarter in the prior year, the business posted $1.10 EPS. Analysts predict 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.