Why are Institutional Investors Interested in Buying Discover Financial Services (DFS)?

Discover Financial Services (NYSE: DFS) is 5.30% higher on its value in year-to-date trading and has touched a low of $23.25 and a high of $98.62 in the current 52-week trading range. The DFS stock was last observed hovering at around $95.33 in the last trading session, with the day’s gains setting it 1.34% off its average median price target of $101.00 for the next 12 months. It is also 15.94% off the consensus price target high of $115.00 offered by 23 analysts, but current levels are -53.44% lower than the price target low of $63.00 for the same period.

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Currently trading at $96.67, the stock is 7.68% and 18.03% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 1.16 million and changing 1.41% at the moment leaves the stock 66.22% off its SMA200. DFS registered 15.02% gain for a year compared to 6-month gain of 100.61%. The firm has a 50-day simple moving average (SMA 50) of $86.42 and a 200-day simple moving average (SMA200) of $64.87.

The stock witnessed a 13.27% loss in the last 1 month and extending the period to 3 months gives it a 47.50%, and is 5.07% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 2.57% over the week and 2.67% over the month.

Discover Financial Services (DFS) has around 17200 employees, a market worth around $29.35B and $11.37B in sales. Current P/E ratio is 29.22 and Fwd P/E is 12.14. Profit margin for the company is 8.90%. Distance from 52-week low is 315.78% and -1.98% from its 52-week high. The company has generated returns on investments over the last 12 months (14.50%).

Discover Financial Services (DFS) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Discover Financial Services (DFS) is a “Overweight”. 23 analysts offering their recommendations for the stock have an average rating of 2.30, where 10 rate it as a Hold and 0 think it is a “Overweight”. 12 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Discover Financial Services is expected to release its quarterly report on 04/27/2021 and quarterly earnings per share for the current quarter are estimated at $2.31 with sales reaching $2.82B over the same period.The EPS is expected to grow by 16.60% this year, but quarterly earnings will post -3.50% year-over-year. Quarterly sales are estimated to shrink -4.00% in year-over-year returns.

Discover Financial Services (DFS) Top Institutional Holders

1,025 institutions hold shares in Discover Financial Services (DFS), with 1.62M shares held by insiders accounting for 0.53% while institutional investors hold 89.22% of the company’s shares. The shares outstanding are 306.00M, and float is at 304.88M with Short Float at 2.20%. Institutions hold 88.75% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 34.0 million shares valued at $1.96 billion. The investor’s holdings represent 11.09% of the DFS Shares outstanding. As of Sep 29, 2020, the second largest holder is FMR, LLC with 22.46 million shares valued at $1.3 billion to account for 7.33% of the shares outstanding. The other top investors are Blackrock Inc. which holds 20.28 million shares representing 6.62% and valued at over $1.17 billion, while State Street Corporation holds 4.20% of the shares totaling 12.87 million with a market value of $743.54 million.

Discover Financial Services (DFS) Insider Activity

A total of 5 insider transactions have happened at Discover Financial Services (DFS) in the last six months, with sales accounting for 5 and purchases happening 0 times. The most recent transaction is an insider sale by Eichfeld Robert Andrew, the company’s EVP – Chief HR & Admin Officer. SEC filings show that Eichfeld Robert Andrew sold 1,519 shares of the company’s common stock on Nov 06 at a price of $67.77 per share for a total of $0.1 million. Following the sale, the insider now owns 32371.0 shares.

Discover Financial Services disclosed in a document filed with the SEC on Jul 31 that BUSH MARY K (Director) sold a total of 1,920 shares of the company’s common stock. The trade occurred on Jul 31 and was made at $49.23 per share for $94522.0. Following the transaction, the insider now directly holds 55899.0 shares of the DFS stock.

Still, SEC filings show that on May 06, Eichfeld Robert Andrew (EVP – Chief HR & Admin Officer) acquired 12,650 shares at an average price of $39.50 for $0.5 million. The insider now directly holds 33,454 shares of Discover Financial Services (DFS).

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Discover Financial Services (DFS): Who are the competitors?

The company’s main competitors (and peers) include Capital One Financial Corporation (COF) that is trading 8.68% up over the past 12 months. TFS Financial Corporation (TFSL) is -1.64% down on the 1-year trading charts. Short interest in the company’s stock has risen 1.49% from the last report on Nov 29, 2020 to stand at a total of 6.59 million short shares sold with a short interest ratio of 2.77.

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