Birch Capital Management LLC Cuts Stake in Discover Financial Services (NYSE:DFS)

Birch Capital Management LLC lessened its holdings in Discover Financial Services (NYSE:DFS) by 16.4% in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 2,835 shares of the financial services provider’s stock after selling 557 shares during the period. Birch Capital Management LLC’s holdings in Discover Financial Services were worth $398,000 as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. Opal Wealth Advisors LLC acquired a new position in Discover Financial Services during the 2nd quarter worth $26,000. Y.D. More Investments Ltd grew its position in shares of Discover Financial Services by 147.8% during the second 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 in the last quarter. Whittier Trust Co. of Nevada Inc. increased its stake in shares of Discover Financial Services by 72.5% during the second quarter. Whittier Trust Co. of Nevada Inc. now owns 226 shares of the financial services provider’s stock worth $30,000 after buying an additional 95 shares during the period. Larson Financial Group LLC raised its holdings in Discover Financial Services by 348.2% in the second quarter. Larson Financial Group LLC now owns 251 shares of the financial services provider’s stock valued at $33,000 after acquiring an additional 195 shares in the last quarter. Finally, Riverview Trust Co purchased a new position in Discover Financial Services in the first quarter worth approximately $34,000. Institutional investors and hedge funds own 86.94% of the company’s stock.

Discover Financial Services Stock Performance

Shares of Discover Financial Services stock traded up $0.81 on Tuesday, reaching $148.12. 467,051 shares of the stock were exchanged, compared to its average volume of 1,629,290. The firm has a market capitalization of $37.15 billion, a PE ratio of 16.80, a PEG ratio of 0.94 and a beta of 1.41. Discover Financial Services has a 1-year low of $79.04 and a 1-year high of $148.77. The business has a fifty day moving average price of $135.20 and a two-hundred day moving average price of $130.52. The company has a current ratio of 1.12, a quick ratio of 1.04 and a debt-to-equity ratio of 1.28.

Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, July 17th. The financial services provider reported $6.06 earnings per share (EPS) for the quarter, topping the consensus estimate 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 EPS. As a group, research analysts anticipate that Discover Financial Services will post 13.15 earnings per share for the current fiscal year.

Discover Financial Services Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.89%. The ex-dividend date was Thursday, August 22nd. Discover Financial Services’s dividend payout ratio (DPR) is currently 31.93%.

Wall Street Analysts Forecast Growth

DFS has been the topic of a number of recent analyst reports. Jefferies Financial Group increased their price objective on shares of Discover Financial Services from $145.00 to $150.00 and gave the company a “buy” rating in a research report on Tuesday, July 9th. Evercore ISI increased their target price on Discover Financial Services from $140.00 to $156.00 and gave the company an “in-line” rating in a report on Monday, October 7th. BMO Capital Markets lifted their price target on Discover Financial Services from $115.00 to $119.00 and gave the stock a “market perform” rating in a report on Friday, July 19th. StockNews.com began coverage on Discover Financial Services in a report on Friday. They issued a “hold” rating on the stock. Finally, JPMorgan Chase & Co. boosted their target price on Discover Financial Services from $132.00 to $135.00 and gave the stock a “neutral” rating in a research note on Friday, July 19th. Thirteen equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $133.88.

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; 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.