Water Island Capital LLC Sells 266 Shares of Discover Financial Services (NYSE:DFS)

Water Island Capital LLC decreased its position in Discover Financial Services (NYSE:DFS) by 2.5% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 10,182 shares of the financial services provider’s stock after selling 266 shares during the quarter. Water Island Capital LLC’s holdings in Discover Financial Services were worth $1,332,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also modified their holdings of DFS. Opal Wealth Advisors LLC bought a new position in Discover Financial Services in the 2nd quarter valued at $26,000. Y.D. More Investments Ltd increased its stake in Discover Financial Services by 147.8% in the 2nd quarter. Y.D. More Investments Ltd now owns 223 shares of the financial services provider’s stock worth $29,000 after buying an additional 133 shares during the period. Whittier Trust Co. of Nevada Inc. lifted its holdings in Discover Financial Services by 72.5% during the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 226 shares of the financial services provider’s stock valued at $30,000 after buying an additional 95 shares in the last quarter. Larson Financial Group LLC boosted its position in Discover Financial Services by 348.2% in the 2nd quarter. Larson Financial Group LLC now owns 251 shares of the financial services provider’s stock valued at $33,000 after buying an additional 195 shares during the period. Finally, Riverview Trust Co bought a new position in Discover Financial Services in the 1st quarter worth about $34,000. 86.94% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Price Performance

Discover Financial Services stock opened at $139.25 on Monday. Discover Financial Services has a 1 year low of $79.04 and a 1 year high of $147.61. The firm has a 50 day moving average price of $134.48 and a 200 day moving average price of $129.22. The company has a market cap of $34.92 billion, a price-to-earnings ratio of 15.88, a PEG ratio of 0.94 and a beta of 1.42. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.04 and a current ratio of 1.12.

Discover Financial Services (NYSE:DFS) last issued its quarterly earnings data on Wednesday, July 17th. The financial services provider reported $6.06 EPS for the quarter, topping analysts’ consensus estimates of $3.06 by $3.00. The company had revenue of $4.54 billion for the quarter, compared to analysts’ expectations of $4.18 billion. Discover Financial Services had a return on equity of 20.92% and a net margin of 12.88%. The firm’s quarterly revenue was up 17.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.54 earnings per share. Sell-side analysts predict that Discover Financial Services will post 12.88 earnings per share for the current year.

Discover Financial Services Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 5th. Investors of record on Thursday, August 22nd were paid a $0.70 dividend. The ex-dividend date of this dividend was Thursday, August 22nd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.01%. Discover Financial Services’s dividend payout ratio (DPR) is presently 31.93%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on DFS. BMO Capital Markets raised their price target on Discover Financial Services from $115.00 to $119.00 and gave the company a “market perform” rating in a research note on Friday, July 19th. Jefferies Financial Group boosted their price target on shares of Discover Financial Services from $145.00 to $150.00 and gave the company a “buy” rating in a report on Tuesday, July 9th. JPMorgan Chase & Co. increased their price objective on shares of Discover Financial Services from $132.00 to $135.00 and gave the company a “neutral” rating in a research note on Friday, July 19th. StockNews.com assumed coverage on Discover Financial Services in a report on Wednesday, September 25th. They set a “hold” rating for the company. Finally, Royal Bank of Canada lifted their price target on Discover Financial Services from $140.00 to $148.00 and gave the company a “sector perform” rating in a report on Friday, July 19th. Thirteen investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $132.94.

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; 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.