Discover Financial Services (NYSE:DFS) Shares Down 8.2% – Should You Sell?

Shares of Discover Financial Services (NYSE:DFS) fell 8.2% during trading on Monday . The company traded as low as $152.82 and last traded at $150.84. 1,504,315 shares traded hands during mid-day trading, an increase of 10% from the average session volume of 1,369,358 shares. The stock had previously closed at $164.26.

Wall Street Analyst Weigh In

DFS has been the topic of several research reports. Barclays raised their target price on shares of Discover Financial Services from $186.00 to $209.00 and gave the stock an “overweight” rating in a report on Friday, January 24th. UBS Group upgraded Discover Financial Services from a “neutral” rating to a “buy” rating and boosted their price target for the company from $150.00 to $239.00 in a research note on Monday, January 13th. Wells Fargo & Company increased their price objective 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. Keefe, Bruyette & Woods boosted their target price on shares of Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a research report on Monday, December 9th. Finally, Truist Financial increased their price target on shares of Discover Financial Services from $233.00 to $262.00 and gave the stock a “buy” rating in a research report on Monday, January 27th. Eight investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $191.91.

Discover Financial Services Price Performance

The company has a current ratio of 1.09, a quick ratio of 1.03 and a debt-to-equity ratio of 1.09. The stock has a 50 day simple moving average of $187.69 and a 200-day simple moving average of $168.29. The firm has a market cap of $38.58 billion, a PE ratio of 9.65, a price-to-earnings-growth ratio of 1.51 and a beta of 1.45.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 EPS for the quarter, topping analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a return on equity of 26.18% and a net margin of 17.29%. Equities analysts anticipate that Discover Financial Services will post 13.88 earnings per share for the current fiscal year.

Discover Financial Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 1.83%. The ex-dividend date of this dividend is Friday, May 23rd. Discover Financial Services’s dividend payout ratio (DPR) is presently 17.54%.

Institutional Trading of Discover Financial Services

Large investors have recently added to or reduced their stakes in the company. Point72 Asia Singapore Pte. Ltd. bought a new stake in Discover Financial Services during the third quarter worth approximately $30,000. SBI Securities Co. Ltd. bought a new position in shares of Discover Financial Services during the 4th quarter valued at approximately $33,000. Flagship Wealth Advisors LLC purchased a new stake in Discover Financial Services during the 4th quarter valued at $34,000. Mattson Financial Services LLC bought a new stake in Discover Financial Services in the fourth quarter worth $34,000. Finally, Grove Bank & Trust boosted its stake in Discover Financial Services by 78.1% during the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock worth $35,000 after buying an additional 89 shares during the period. Institutional investors own 86.94% of the company’s stock.

Discover Financial Services Company 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.