Aviva PLC Buys 125,134 Shares of Discover Financial Services (NYSE:DFS)

Posted by Defense World Staff on May 30th, 2023

Aviva PLC lifted its holdings in shares of Discover Financial Services (NYSE:DFS – Get Rating) by 107.5% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 241,563 shares of the financial services provider’s stock after purchasing an additional 125,134 shares during the period. Aviva PLC owned about 0.09% of Discover Financial Services worth $2,279,000 as of its most recent filing with the SEC.

Several other institutional investors have also added to or reduced their stakes in DFS. Cullen Frost Bankers Inc. increased its stake in shares of Discover Financial Services by 155.1% in the 3rd quarter. Cullen Frost Bankers Inc. now owns 301 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 183 shares in the last quarter. Sandy Spring Bank increased its position in Discover Financial Services by 133.3% in the fourth quarter. Sandy Spring Bank now owns 273 shares of the financial services provider’s stock worth $27,000 after purchasing an additional 156 shares during the last quarter. Edmond DE Rothschild Holding S.A. bought a new position in Discover Financial Services during the fourth quarter valued at $29,000. Tsfg LLC increased its position in Discover Financial Services by 151.2% during the fourth quarter. Tsfg LLC now owns 309 shares of the financial services provider’s stock valued at $30,000 after acquiring an additional 186 shares during the last quarter. Finally, CI Investments Inc. boosted its stake in shares of Discover Financial Services by 982.4% during the third quarter. CI Investments Inc. now owns 368 shares of the financial services provider’s stock valued at $33,000 after purchasing an additional 334 shares during the period. Hedge funds and other institutional investors own 81.74% of the company’s stock.

Discover Financial Services Stock Performance

NYSE DFS opened at $102.36 on Tuesday. The firm has a market capitalization of $25.99 billion, a P/E ratio of 6.89, a P/E/G ratio of 1.36 and a beta of 1.43. Discover Financial Services has a 1-year low of $87.64 and a 1-year high of $119.91. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.14 and a quick ratio of 1.14. The business’s 50-day simple moving average is $98.92 and its 200-day simple moving average is $103.88.

Discover Financial Services (NYSE:DFS – Get Rating) last released its quarterly earnings data on Wednesday, April 19th. The financial services provider reported $3.58 earnings per share for the quarter, missing the consensus estimate of $3.84 by ($0.26). The firm had revenue of $3.75 billion during the quarter, compared to analyst estimates of $3.71 billion. Discover Financial Services had a net margin of 24.65% and a return on equity of 31.30%. The business’s revenue for the quarter was up 29.3% on a year-over-year basis. During the same period in the prior year, the firm earned $4.22 earnings per share. Equities analysts predict that Discover Financial Services will post 13.34 EPS for the current year.

Discover Financial Services announced that its board has initiated a stock repurchase program on Wednesday, April 19th that allows the company to buyback $2.70 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 9.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its shares are undervalued.

Discover Financial Services Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 8th. Investors of record on Thursday, May 25th will be issued a dividend of $0.70 per share. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.60. This represents a $2.80 annualized dividend and a dividend yield of 2.74%. The ex-dividend date of this dividend is Wednesday, May 24th. Discover Financial Services’s dividend payout ratio (DPR) is presently 18.86%.

Insider Activity at Discover Financial Services

In related news, EVP Robert Andrew Eichfeld sold 13,477 shares of the firm’s stock in a transaction dated Friday, March 3rd. The stock was sold at an average price of $114.18, for a total transaction of $1,538,803.86. Following the sale, the executive vice president now directly owns 31,509 shares in the company, valued at approximately $3,597,697.62. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.69% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have commented on DFS. JPMorgan Chase & Co. decreased their price target on shares of Discover Financial Services from $111.00 to $102.00 and set a “neutral” rating for the company in a research report on Monday, April 17th. Royal Bank of Canada reiterated an “outperform” rating and set a $125.00 price target on shares of Discover Financial Services in a report on Friday, April 21st. Wells Fargo & Company reduced their price objective on shares of Discover Financial Services from $105.00 to $103.00 and set an “equal weight” rating on the stock in a report on Friday, March 31st. Bank of America upgraded shares of Discover Financial Services from an “underperform” rating to a “neutral” rating and set a $107.00 price target on the stock in a research note on Wednesday, March 15th. Finally, The Goldman Sachs Group upped their price target on Discover Financial Services from $120.00 to $132.00 and gave the company a “buy” rating in a report on Friday, March 3rd. Ten investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $119.00.

About Discover Financial Services

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Discover Financial Services is a holding company. It operates under the Digital Banking and Payment Services segments. The Digital Banking segment focuses on consumer banking and lending products, specifically Discover-branded credit cards issued to individuals on the Discover Network and other consumer banking products and services including private student loans, personal loans, home loans, and deposit products.