Short Interest in Discover Financial Services (NYSE:DFS) Increases By 16.2%

Discover Financial Services (NYSE:DFS) was the recipient of a significant increase in short interest in the month of January. As of January 31st, there was short interest totalling 3,440,000 shares, an increase of 16.2% from the January 15th total of 2,960,000 shares. Approximately 1.4% of the company’s shares are short sold. Based on an average trading volume of 1,580,000 shares, the short-interest ratio is presently 2.2 days.

Discover Financial Services Stock Up 3.2 %

NYSE DFS traded up $6.03 on Monday, hitting $196.14. 1,238,124 shares of the stock traded hands, compared to its average volume of 1,519,959. The stock has a 50-day moving average of $184.70 and a 200 day moving average of $160.98. Discover Financial Services has a twelve month low of $109.50 and a twelve month high of $205.76. The company has a market capitalization of $49.29 billion, a P/E ratio of 12.29, a price-to-earnings-growth ratio of 0.63 and a beta of 1.46. The company has a current ratio of 1.09, a quick ratio of 1.03 and a debt-to-equity ratio of 1.09.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.13 by $1.98. Discover Financial Services had a return on equity of 26.18% and a net margin of 17.29%. As a group, analysts expect that Discover Financial Services will post 13.57 earnings per share for the current fiscal year.

Discover Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 1.43%. The ex-dividend date of this dividend is Friday, May 23rd. Discover Financial Services’s payout ratio is currently 17.54%.

Institutional Trading of Discover Financial Services

Institutional investors and hedge funds have recently bought and sold shares of the company. DiNuzzo Private Wealth Inc. raised its stake in Discover Financial Services by 506.5% during the third quarter. DiNuzzo Private Wealth Inc. now owns 188 shares of the financial services provider’s stock valued at $26,000 after buying an additional 157 shares in the last quarter. SBI Securities Co. Ltd. acquired a new stake in shares of Discover Financial Services during the 4th quarter worth approximately $33,000. Flagship Wealth Advisors LLC acquired a new stake in shares of Discover Financial Services during the 4th quarter worth approximately $34,000. Bfsg LLC acquired a new stake in shares of Discover Financial Services during the 4th quarter worth approximately $35,000. Finally, Grove Bank & Trust raised its position in shares of Discover Financial Services by 78.1% during the 4th quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock worth $35,000 after purchasing an additional 89 shares during the period. Institutional investors and hedge funds own 86.94% of the company’s stock.

Analyst Upgrades and Downgrades

DFS has been the subject of a number of research reports. Barclays boosted their price target on Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a research report on Friday, January 24th. Wells Fargo & Company upped their target price on Discover Financial Services from $185.00 to $214.00 and gave the stock an “equal weight” rating in a research report on Friday, January 24th. JPMorgan Chase & Co. upped their target price on Discover Financial Services from $146.00 to $169.00 and gave the stock a “neutral” rating in a research report on Friday, January 24th. StockNews.com downgraded Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Friday, January 24th. Finally, 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 report on Friday, January 24th. Ten research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $186.46.

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.