Discover Financial Services (NYSE:DFS) is Alpine Associates Management Inc.’s 6th Largest Position

Alpine Associates Management Inc. cut its position in shares of Discover Financial Services (NYSE:DFS) by 14.0% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 859,494 shares of the financial services provider’s stock after selling 140,113 shares during the quarter. Discover Financial Services makes up 5.4% of Alpine Associates Management Inc.’s investment portfolio, making the stock its 6th largest position. Alpine Associates Management Inc. owned about 0.34% of Discover Financial Services worth $112,430,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Opal Wealth Advisors LLC purchased a new stake in Discover Financial Services in the second quarter valued at approximately $26,000. Y.D. More Investments Ltd grew its holdings in Discover Financial Services by 147.8% in the second quarter. Y.D. More Investments Ltd now owns 223 shares of the financial services provider’s stock valued at $29,000 after purchasing an additional 133 shares during the period. Whittier Trust Co. of Nevada Inc. grew its holdings in Discover Financial Services by 72.5% in the second quarter. Whittier Trust Co. of Nevada Inc. now owns 226 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 95 shares during the period. Larson Financial Group LLC grew its holdings in Discover Financial Services by 348.2% in the second quarter. Larson Financial Group LLC now owns 251 shares of the financial services provider’s stock valued at $33,000 after purchasing an additional 195 shares during the period. Finally, Riverview Trust Co purchased a new stake in Discover Financial Services in the first quarter valued at approximately $34,000. 86.94% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on DFS. BTIG Research started coverage on shares of Discover Financial Services in a report on Friday, June 7th. They issued a “neutral” rating for the company. JPMorgan Chase & Co. lifted their price target on shares of Discover Financial Services from $132.00 to $135.00 and gave the company a “neutral” rating in a research report on Friday, July 19th. Royal Bank of Canada lifted their price target on shares of Discover Financial Services from $140.00 to $148.00 and gave the company a “sector perform” rating in a research report on Friday, July 19th. BMO Capital Markets lifted their price target on shares of Discover Financial Services from $115.00 to $119.00 and gave the company a “market perform” rating in a research report on Friday, July 19th. Finally, Barclays lifted their price target on shares of Discover Financial Services from $135.00 to $137.00 and gave the company an “equal weight” rating in a research report on Friday, July 19th. Thirteen research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $132.94.

Discover Financial Services Stock Up 1.6 %

DFS stock opened at $131.33 on Monday. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.12 and a quick ratio of 1.04. Discover Financial Services has a 1-year low of $79.04 and a 1-year high of $147.61. The firm has a fifty day moving average price of $133.92 and a two-hundred day moving average price of $128.04. The firm has a market cap of $32.93 billion, a price-to-earnings ratio of 14.97, a PEG ratio of 0.86 and a beta of 1.42.

Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, July 17th. The financial services provider reported $6.06 earnings per share for the quarter, beating the consensus estimate of $3.06 by $3.00. Discover Financial Services had a net margin of 12.88% and a return on equity of 20.92%. The firm had revenue of $4.54 billion during the quarter, compared to analyst estimates of $4.18 billion. During the same quarter in the previous year, the firm earned $3.54 earnings per share. The firm’s revenue for the quarter was up 17.0% compared to the same quarter last year. Research analysts predict that Discover Financial Services will post 12.87 EPS for the current year.

Discover Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were paid a dividend of $0.70 per share. The ex-dividend date was Thursday, August 22nd. This represents a $2.80 annualized dividend and a yield of 2.13%. Discover Financial Services’s payout ratio is 31.93%.

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; 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.