Discover financial services (NYSE:DFS) declared a quarterly dividend on Wednesday, July 20, Zacks reports. Investors of record on Thursday, August 25 will receive a dividend of 0.60 per share from the financial services provider on Thursday, September 8. This represents a dividend of $2.40 on an annualized basis and a yield of 2.40%. The ex-dividend date is Wednesday, August 24.
Discover Financial Services has increased its dividend by an average of 7.8% per year for the past three years and has increased its dividend annually for the past 12 consecutive years. Discover Financial Services has a dividend payout ratio of 16.4%, which means its dividend is sufficiently covered by earnings. Equity research analysts expect Discover Financial Services to earn $14.41 per share next year, meaning the company should continue to be able to cover its $2.40 annual dividend. with an expected future payout ratio of 16.7%.
Check out financial services stocks down 8.9%
Shares of Discover Financial Services opened at $100.00 on Friday. The company has a 50-day simple moving average of $102.25 and a two-hundred-day simple moving average of $111.14. The stock has a market capitalization of $28.10 billion, a PE ratio of 6.51, a growth price-earnings ratio of 0.25 and a beta of 1.48. Discover Financial Services has a 52-week low of $88.02 and a 52-week high of $135.69. The company has a debt ratio of 1.38, a quick ratio of 1.26 and a current ratio of 1.26.
Discover Financial Services (NYSE:DFS – Get Rating) last reported quarterly earnings data on Wednesday, July 20. The financial services provider reported earnings per share of $3.96 for the quarter, beating analysts’ consensus estimate of $3.77 by $0.19. Discover Financial Services posted a net margin of 34.89% and a return on equity of 36.64%. The company posted revenue of $3.22 billion in the quarter, versus analyst estimates of $3.18 billion. During the same period of the previous year, the company achieved EPS of $5.55. The company’s revenue for the quarter was down 9.9% year over year. On average, analysts expect Discover Financial Services to post EPS of 14.93 for the current fiscal year.
A Wall Street analyst gives his opinion
Several equity research analysts have recently commented on DFS shares. Piper Sandler cut her price target on Discover Financial Services from $139.00 to $127.00 and set an “overweight” rating for the company in a Wednesday, June 29 report. Morgan Stanley lowered its price target on shares of Discover Financial Services from $131.00 to $111.00 and set an “equal weight” rating on the stock in a Tuesday, July 12 research report. Barclays lowered its target price on shares of Discover Financial Services from $140.00 to $133.00 in a research note on Friday. Wolfe Research downgraded Discover Financial Services from an “outperform” rating to a “peer performer” rating and set a price target of $97.00 for the company. in a report on Thursday, May 12. Finally, Wells Fargo & Company lowered its price target on Discover Financial Services from $130.00 to $103.00 and set an “equal weight” rating on the stock in a Wednesday, July 13 report. Seven research analysts gave the stock a hold rating and nine gave the stock a buy rating. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $129.13.
Hedge funds weigh on Discover Financial Services
Hedge funds have recently changed their positions in the business. First Western Trust Bank bought a new position in Discover Financial Services in Q1 worth approximately $227,000. Brown Brothers Harriman & Co. increased its position in shares of Discover Financial Services by 995.4% during the first quarter. Brown Brothers Harriman & Co. now owns 2,388 shares of the financial services provider worth $263,000 after acquiring 2,170 additional shares in the last quarter. Fund management at Engine No. 1 LLC bought a new position in Discover Financial Services during the first quarter worth $269,000. Echo Street Capital Management LLC purchased a new stake in Discover Financial Services in Q1 valued at $271,000. Finally, Industrial Alliance Investment Management Inc. increased its stake in Discover Financial Services by 13.2% in the 1st quarter. Industrial Alliance Investment Management Inc. now owns 2,607 shares of the financial services provider valued at $287,000 after acquiring 305 additional shares in the last quarter. Institutional investors hold 85.53% of the company’s shares.
Discover the profile of the financial services company
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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 loans; and direct-to-consumer deposit products including savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings and checking accounts, and money transfer accounts.
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