Primecap Management Co. CA Sells 96,840 Shares of Discover Financial Services (NYSE:DFS)

Primecap Management Co. CA cut its stake in shares of Discover Financial Services (NYSE:DFS) by 13.8% during the 4th quarter, HoldingsChannel reports. The firm owned 604,903 shares of the financial services provider’s stock after selling 96,840 shares during the period. Primecap Management Co. CA’s holdings in Discover Financial Services were worth $104,787,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in DFS. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors bought a new stake in Discover Financial Services during the 4th quarter worth approximately $351,766,000. FMR LLC grew its holdings in Discover Financial Services by 8.0% during the 3rd quarter. FMR LLC now owns 7,493,862 shares of the financial services provider’s stock worth $1,051,314,000 after acquiring an additional 558,227 shares during the last quarter. Strategic Financial Concepts LLC bought a new stake in Discover Financial Services during the 4th quarter worth approximately $39,067,000. Raymond James Financial Inc. bought a new stake in Discover Financial Services during the 4th quarter worth approximately $38,489,000. Finally, Proficio Capital Partners LLC bought a new stake in Discover Financial Services during the 4th quarter worth approximately $36,219,000. 86.94% of the stock is owned by institutional investors.

Discover Financial Services Stock Up 3.9 %

Discover Financial Services stock opened at $158.91 on Wednesday. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09. Discover Financial Services has a 12-month low of $119.31 and a 12-month high of $205.76. The firm’s fifty day moving average is $186.78 and its 200 day moving average is $168.54. The company has a market capitalization of $39.98 billion, a PE ratio of 9.96, a PEG ratio of 1.51 and a beta of 1.45.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share for the quarter, topping the consensus estimate of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%. As a group, sell-side analysts predict that Discover Financial Services will post 13.88 EPS for the current fiscal year.

Discover Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date is Friday, May 23rd. This represents a $2.80 annualized dividend and a yield of 1.76%. Discover Financial Services’s payout ratio is 17.54%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on DFS. Barclays boosted their target price on shares of 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 upped their price objective on shares of Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a research note on Monday, December 9th. Wells Fargo & Company upped their price objective 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. Royal Bank of Canada upped their price objective on shares of Discover Financial Services from $193.00 to $210.00 and gave the company a “sector perform” rating in a research note on Friday, January 24th. Finally, StockNews.com lowered shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research note on Friday, January 24th. Eight equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $191.91.

About Discover Financial Services

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.