Cambridge Investment Research Advisors Inc. Boosts Holdings in Discover Financial Services (NYSE:DFS)

Cambridge Investment Research Advisors Inc. increased its stake in shares of Discover Financial Services (NYSE:DFS) by 22.5% in the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 34,616 shares of the financial services provider’s stock after buying an additional 6,354 shares during the period. Cambridge Investment Research Advisors Inc.’s holdings in Discover Financial Services were worth $4,095,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently bought and sold shares of DFS. Concord Wealth Partners increased its stake in shares of Discover Financial Services by 162.9% in the first quarter. Concord Wealth Partners now owns 276 shares of the financial services provider’s stock worth $26,000 after purchasing an additional 171 shares in the last quarter. Baldrige Asset Management LLC purchased a new position in shares of Discover Financial Services in the second quarter worth about $28,000. Thompson Siegel & Walmsley LLC purchased a new position in shares of Discover Financial Services in the first quarter worth about $30,000. AllSquare Wealth Management LLC increased its stake in shares of Discover Financial Services by 50.2% in the first quarter. AllSquare Wealth Management LLC now owns 356 shares of the financial services provider’s stock worth $34,000 after purchasing an additional 119 shares in the last quarter. Finally, BDO Wealth Advisors LLC increased its stake in shares of Discover Financial Services by 939.5% in the first quarter. BDO Wealth Advisors LLC now owns 395 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 357 shares in the last quarter. Institutional investors and hedge funds own 85.28% of the company’s stock.

In other Discover Financial Services news, Director Mary K. Bush sold 3,824 shares of the business’s stock in a transaction on Wednesday, July 28th. The shares were sold at an average price of $123.21, for a total transaction of $471,155.04. Following the transaction, the director now directly owns 53,366 shares of the company’s stock, valued at approximately $6,575,224.86. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CAO Shifra Kolsky sold 800 shares of the business’s stock in a transaction on Wednesday, August 4th. The shares were sold at an average price of $127.11, for a total transaction of $101,688.00. Following the transaction, the chief accounting officer now directly owns 3,610 shares in the company, valued at $458,867.10. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 19,624 shares of company stock worth $2,477,843. 0.54% of the stock is owned by insiders.

DFS has been the subject of a number of analyst reports. Morgan Stanley raised their price objective on shares of Discover Financial Services from $137.00 to $139.00 and gave the company an “equal weight” rating in a research report on Thursday, September 16th. Piper Sandler cut their price objective on shares of Discover Financial Services from $122.00 to $118.00 and set a “neutral” rating for the company in a research report on Friday, July 2nd. Zacks Investment Research lowered shares of Discover Financial Services from a “buy” rating to a “hold” rating and set a $124.00 price objective for the company. in a research report on Wednesday, July 7th. Credit Suisse Group raised their price objective on shares of Discover Financial Services from $128.00 to $140.00 and gave the company an “outperform” rating in a research report on Friday, July 2nd. Finally, Seaport Res Ptn restated a “neutral” rating on shares of Discover Financial Services in a research report on Monday, August 30th. Ten equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $123.53.

Shares of NYSE DFS opened at $122.83 on Wednesday. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.60. Discover Financial Services has a 52 week low of $51.74 and a 52 week high of $135.69. The firm’s fifty day moving average is $125.75 and its 200 day moving average is $115.89. The company has a market cap of $36.78 billion, a price-to-earnings ratio of 7.86, a PEG ratio of 0.13 and a beta of 1.84.

Discover Financial Services (NYSE:DFS) last issued its earnings results on Tuesday, July 20th. The financial services provider reported $5.55 EPS for the quarter, topping the consensus estimate of $3.68 by $1.87. Discover Financial Services had a net margin of 36.50% and a return on equity of 46.03%. The company had revenue of $3.58 billion for the quarter, compared to the consensus estimate of $3.01 billion. During the same period in the previous year, the firm earned ($1.20) earnings per share. The firm’s revenue for the quarter was up 34.4% on a year-over-year basis. Equities research analysts anticipate that Discover Financial Services will post 16.9 earnings per share for the current year.

Discover Financial Services announced that its Board of Directors has approved a share buyback plan on Wednesday, July 21st that allows the company to buyback $2.40 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 6.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

The company also recently announced a quarterly dividend, which was paid on Thursday, September 2nd. Investors of record on Thursday, August 19th were paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.63%. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.44. The ex-dividend date of this dividend was Wednesday, August 18th. Discover Financial Services’s payout ratio is presently 55.56%.

Discover Financial Services Company Profile

Discover Financial Services is a holding company, which engages in the provision of direct banking and payment services. It operates through the Direct Banking and Payment Services segments. The Direct Banking segment offers Discover-branded credit cards issued to individuals on the Discover Network and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending and deposit products.

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Institutional Ownership by Quarter for Discover Financial Services (NYSE:DFS)

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