Discover Financial Services (NYSE:DFS) Hits New 1-Year High – Should You Buy?

Discover Financial Services (NYSE:DFS) shares reached a new 52-week high on Thursday . The stock traded as high as $205.76 and last traded at $204.72, with a volume of 306886 shares. The stock had previously closed at $201.03.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on DFS shares. Keefe, Bruyette & Woods raised 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. Barclays lifted their price target on Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a research note on Friday, January 24th. Wells Fargo & Company increased their price objective on Discover Financial Services from $185.00 to $214.00 and gave the stock an “equal weight” rating in a research note on Friday, January 24th. Truist Financial lifted their target price on Discover Financial Services from $233.00 to $262.00 and gave the company a “buy” rating in a research report on Monday. Finally, Royal Bank of Canada raised their price objective on 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. Ten investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat, Discover Financial Services has an average rating of “Hold” and an average target price of $182.64.

Discover Financial Services Stock Performance

The company’s 50-day moving average is $180.47 and its two-hundred day moving average is $156.15. The company has a quick ratio of 1.03, a current ratio of 1.10 and a debt-to-equity ratio of 1.09. The company has a market cap of $50.87 billion, a P/E ratio of 12.68, a price-to-earnings-growth ratio of 1.15 and a beta of 1.46.

Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share for the quarter, beating analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 27.52%. Equities analysts predict that Discover Financial Services will post 12.82 EPS for the current year.

Discover Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.38%. The ex-dividend date is Friday, May 23rd. Discover Financial Services’s dividend payout ratio is currently 17.54%.

Institutional Investors Weigh In On Discover Financial Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DFS. AXA S.A. raised its stake in shares of Discover Financial Services by 141.5% during the 2nd quarter. AXA S.A. now owns 6,064 shares of the financial services provider’s stock valued at $793,000 after purchasing an additional 3,553 shares during the period. Creative Planning grew its holdings in Discover Financial Services by 1.4% during the 2nd quarter. Creative Planning now owns 63,959 shares of the financial services provider’s stock valued at $8,366,000 after buying an additional 906 shares in the last quarter. EP Wealth Advisors LLC increased its position in shares of Discover Financial Services by 3.6% during the second quarter. EP Wealth Advisors LLC now owns 5,510 shares of the financial services provider’s stock valued at $721,000 after buying an additional 189 shares during the period. 3Chopt Investment Partners LLC purchased a new stake in shares of Discover Financial Services in the second quarter worth about $476,000. Finally, Cetera Investment Advisers boosted its position in shares of Discover Financial Services by 0.8% in the second quarter. Cetera Investment Advisers now owns 69,539 shares of the financial services provider’s stock valued at $9,097,000 after acquiring an additional 549 shares during the period. 86.94% of the stock is currently owned by institutional investors.

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.