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.
Discover Financial Services Stock Performance
Shares of NYSE:DFS opened at $108.47 on Friday. The company's 50 day simple moving average is $100.32 and its 200 day simple moving average is $108.70. The stock has a market capitalization of $29.63 billion, a price-to-earnings ratio of 7.06, a price-to-earnings-growth ratio of 0.24 and a beta of 1.45. The company has a debt-to-equity ratio of 1.43, a current ratio of 1.26 and a quick ratio of 1.26. Discover Financial Services has a 1 year low of $88.02 and a 1 year high of $133.78.
Discover Financial Services (NYSE:DFS - Get Rating) last posted its earnings results on Wednesday, July 20th. The financial services provider reported $3.96 earnings per share for the quarter, topping analysts' consensus estimates of $3.77 by $0.19. The firm had revenue of $3.22 billion for the quarter, compared to analysts' expectations of $3.18 billion. Discover Financial Services had a net margin of 34.89% and a return on equity of 36.35%. The company's revenue was down 9.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.55 earnings per share. As a group, research analysts predict that Discover Financial Services will post 15.32 EPS for the current fiscal year.
Discover Financial Services Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Thursday, September 8th. Shareholders of record on Thursday, August 25th will be paid a dividend of $0.60 per share. 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 2.21%. Discover Financial Services's payout ratio is presently 15.63%.
Analyst Upgrades and Downgrades
DFS has been the subject of several research reports. Morgan Stanley cut their price objective on shares of Discover Financial Services from $111.00 to $104.00 and set an "equal weight" rating for the company in a research report on Friday, July 22nd. Citigroup downgraded shares of Discover Financial Services from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $140.00 to $115.00 in a research report on Friday, July 22nd. Wells Fargo & Company cut their price objective on shares of Discover Financial Services from $130.00 to $103.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 13th. Keefe, Bruyette & Woods cut their price objective on shares of Discover Financial Services from $150.00 to $135.00 in a research report on Monday, July 11th. Finally, Barclays dropped their price target on shares of Discover Financial Services from $140.00 to $133.00 and set an "overweight" rating for the company in a research report on Friday, July 22nd. Seven investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $127.56.