Round Hill Asset Management Reduces Stock Holdings in Discover Financial Services (NYSE:DFS)

Round Hill Asset Management lowered its holdings in Discover Financial Services (NYSE:DFS) by 16.4% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 20,083 shares of the financial services provider’s stock after selling 3,935 shares during the quarter. Discover Financial Services accounts for 2.5% of Round Hill Asset Management’s holdings, making the stock its 11th biggest position. Round Hill Asset Management’s holdings in Discover Financial Services were worth $3,479,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the business. FMR LLC raised its position in Discover Financial Services by 0.8% during the fourth quarter. FMR LLC now owns 7,553,016 shares of the financial services provider’s stock valued at $1,308,409,000 after acquiring an additional 59,154 shares in the last quarter. KCM Investment Advisors LLC acquired a new stake in shares of Discover Financial Services during the 4th quarter worth approximately $212,000. Resona Asset Management Co. Ltd. purchased a new position in shares of Discover Financial Services during the 4th quarter valued at approximately $13,057,000. Integrated Quantitative Investments LLC purchased a new stake in Discover Financial Services during the fourth quarter worth $423,000. Finally, Unison Advisors LLC boosted its holdings in Discover Financial Services by 0.5% during the fourth quarter. Unison Advisors LLC now owns 45,483 shares of the financial services provider’s stock worth $7,879,000 after buying an additional 214 shares in the last quarter. Hedge funds and other institutional investors own 86.94% of the company’s stock.

Discover Financial Services Price Performance

Shares of NYSE DFS opened at $146.77 on Monday. The firm has a 50-day simple moving average of $181.35 and a 200-day simple moving average of $171.43. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09. The stock has a market capitalization of $36.93 billion, a price-to-earnings ratio of 9.20, a price-to-earnings-growth ratio of 1.51 and a beta of 1.20. Discover Financial Services has a 52 week low of $119.31 and a 52 week high of $205.76.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 EPS for the quarter, beating analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%. On average, equities analysts predict 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. Investors of record on Friday, May 23rd will be given a dividend of $0.70 per share. The ex-dividend date is Friday, May 23rd. This represents a $2.80 dividend on an annualized basis and a yield of 1.91%. Discover Financial Services’s payout ratio is 17.54%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on DFS. JPMorgan Chase & Co. upped their price objective on shares of Discover Financial Services from $146.00 to $169.00 and gave the stock a “neutral” rating in a research report on Friday, January 24th. Barclays upped their price target on Discover Financial Services from $186.00 to $209.00 and gave the stock an “overweight” rating in a report on Friday, January 24th. Keefe, Bruyette & Woods raised their price objective on Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a report on Monday, December 9th. Royal Bank of Canada upped their target price on Discover Financial Services from $193.00 to $210.00 and gave the stock a “sector perform” rating in a research note on Friday, January 24th. Finally, Wells Fargo & Company lifted their price target on shares of Discover Financial Services from $185.00 to $214.00 and gave the company an “equal weight” rating in a research note on Friday, January 24th. Seven investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $192.40.

Discover Financial Services 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.