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; private student loans, 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. The Payment Services segment operates the PULSE, an automated teller machine, debit, and electronic funds transfer network; and Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services, as well as offers payment transaction processing and settlement services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.
Analyst Upgrades and Downgrades
Several equities analysts have recently issued reports on the company. Keefe, Bruyette & Woods decreased their price objective on Discover Financial Services from $150.00 to $135.00 in a research note on Monday, July 11th. Credit Suisse Group decreased their target price on Discover Financial Services to $134.00 in a research note on Friday, July 22nd. Morgan Stanley decreased their target price on Discover Financial Services from $111.00 to $104.00 and set an "equal weight" rating for the company in a research note on Friday, July 22nd. Bank of America cut their price target on Discover Financial Services from $128.00 to $120.00 in a research report on Sunday, July 24th. Finally, Wolfe Research lowered Discover Financial Services from an "outperform" rating to a "peer perform" rating and set a $97.00 price target on the stock. in a research report on Thursday, May 12th. Seven equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat.com, Discover Financial Services presently has an average rating of "Moderate Buy" and an average price target of $127.56.
Discover Financial Services Price Performance
Shares of Discover Financial Services stock traded up $2.17 during trading on Tuesday, reaching $111.00. The company's stock had a trading volume of 42,323 shares, compared to its average volume of 1,959,219. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.43. Discover Financial Services has a 12-month low of $88.02 and a 12-month high of $134.94. The company has a market capitalization of $30.32 billion, a P/E ratio of 7.09, a price-to-earnings-growth ratio of 0.24 and a beta of 1.45. The business has a 50 day moving average price of $100.37 and a 200-day moving average price of $108.74.
Discover Financial Services (NYSE:DFS - Get Rating) last posted its quarterly earnings results on Wednesday, July 20th. The financial services provider reported $3.96 earnings per share for the quarter, beating analysts' consensus estimates of $3.77 by $0.19. Discover Financial Services had a return on equity of 36.35% and a net margin of 34.89%. The firm had revenue of $3.22 billion for the quarter, compared to the consensus estimate of $3.18 billion. During the same period in the previous year, the business earned $5.55 earnings per share. The company's revenue for the quarter was down 9.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Discover Financial Services will post 15.32 EPS for the current year.
Discover Financial Services Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 8th. Investors of record on Thursday, August 25th will be paid a $0.60 dividend. The ex-dividend date of this dividend is Wednesday, August 24th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.16%. Discover Financial Services's dividend payout ratio (DPR) is presently 15.63%.