Discover Financial Services (NYSE:DFS) Short Interest Up 9.0% in May

Discover Financial Services (NYSE:DFS) was the recipient of a large growth in short interest in the month of May. As of May 31st, there was short interest totalling 2,190,000 shares, a growth of 9.0% from the May 15th total of 2,010,000 shares. Based on an average daily volume of 1,300,000 shares, the days-to-cover ratio is currently 1.7 days. Approximately 0.9% of the company’s stock are short sold.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Partnership Wealth Management LLC acquired a new position in shares of Discover Financial Services in the fourth quarter valued at approximately $25,000. Bruce G. Allen Investments LLC bought a new stake in Discover Financial Services during the 4th quarter worth approximately $28,000. MeadowBrook Investment Advisors LLC acquired a new position in Discover Financial Services in the 4th quarter valued at approximately $31,000. Riverview Trust Co bought a new position in shares of Discover Financial Services during the first quarter valued at $34,000. Finally, New Covenant Trust Company N.A. acquired a new position in shares of Discover Financial Services during the first quarter worth $34,000. 86.94% of the stock is currently owned by institutional investors and hedge funds.

Discover Financial Services Trading Up 1.0 %

DFS opened at $126.95 on Wednesday. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 1.50. Discover Financial Services has a twelve month low of $79.04 and a twelve month high of $131.65. The stock has a market capitalization of $31.81 billion, a price-to-earnings ratio of 14.48, a P/E/G ratio of 0.74 and a beta of 1.41. The company has a 50-day simple moving average of $124.04 and a 200 day simple moving average of $117.43.

Discover Financial Services (NYSE:DFS) last released its earnings results on Thursday, April 18th. The financial services provider reported $1.10 earnings per share for the quarter, missing the consensus estimate of $2.98 by ($1.88). Discover Financial Services had a return on equity of 17.07% and a net margin of 10.56%. The business had revenue of $4.21 billion for the quarter, compared to the consensus estimate of $4.07 billion. During the same quarter in the previous year, the company earned $3.58 earnings per share. Analysts predict that Discover Financial Services will post 11.48 EPS for the current fiscal year.

Discover Financial Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 6th. Investors of record on Thursday, May 23rd were paid a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 2.21%. The ex-dividend date was Wednesday, May 22nd. Discover Financial Services’s payout ratio is 31.93%.

Analyst Ratings Changes

DFS has been the topic of several recent research reports. Citigroup lifted their price target on shares of Discover Financial Services from $127.00 to $168.00 and gave the company a “buy” rating in a research note on Friday, February 23rd. Wells Fargo & Company lifted their target price on Discover Financial Services from $105.00 to $135.00 and gave the company an “equal weight” rating in a research report on Wednesday, April 10th. BTIG Research initiated coverage on Discover Financial Services in a research report on Friday, June 7th. They set a “neutral” rating for the company. JPMorgan Chase & Co. raised their price target on Discover Financial Services from $110.00 to $120.00 and gave the company a “neutral” rating in a research note on Wednesday, April 3rd. Finally, HSBC upped their price objective on Discover Financial Services from $107.00 to $144.00 and gave the stock a “hold” rating in a research note on Thursday, March 21st. Thirteen analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $126.29.

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; private student loans, 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.