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.
Wall Street Analysts Forecast Growth
A number of research firms have weighed in on DFS. Barclays cut their price objective on shares of Discover Financial Services from $140.00 to $133.00 and set an "overweight" rating for the company in a report on Friday, July 22nd. Wolfe Research lowered shares of 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. Piper Sandler boosted their target price on shares of Discover Financial Services to $132.00 in a report on Friday, July 22nd. Bank of America decreased their target price on shares of Discover Financial Services from $128.00 to $120.00 in a report on Sunday, July 24th. Finally, Wells Fargo & Company decreased their target price on shares of Discover Financial Services from $130.00 to $103.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 13th. Seven analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, Discover Financial Services has a consensus rating of "Moderate Buy" and a consensus target price of $127.56.
Discover Financial Services Price Performance
Shares of DFS opened at $107.98 on Thursday. Discover Financial Services has a fifty-two week low of $88.02 and a fifty-two week high of $135.69. The firm's 50 day moving average price is $100.51 and its 200 day moving average price is $108.97. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 1.43. The company has a market cap of $29.50 billion, a P/E ratio of 7.03, a PEG ratio of 0.23 and a beta of 1.45.
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 company had revenue of $3.22 billion for the quarter, compared to analysts' expectations of $3.18 billion. During the same period last year, the firm earned $5.55 earnings per share. Discover Financial Services's quarterly revenue was down 9.9% on a year-over-year basis. On average, research analysts forecast that Discover Financial Services will post 15.25 earnings per share for the current fiscal year.
Discover Financial Services Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 8th. Shareholders of record on Thursday, August 25th will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 2.22%. The ex-dividend date of this dividend is Wednesday, August 24th. Discover Financial Services's dividend payout ratio is presently 15.63%.