Lipe & Dalton Acquires New Shares in Discover Financial Services (NYSE:DFS)

Lipe & Dalton has expanded its investment portfolio by acquiring a new stake in Discover Financial Services (NYSE:DFS) during the fourth quarter of the year, based on a recent filing with the Securities and Exchange Commission. The institutional investor bought 1,300 shares of the financial services company, with a total value of approximately $225,000.

During the same period, other major investors also adjusted their ownership in Discover Financial Services. For instance, Blue Trust Inc. raised its stake by an impressive 115.7% in the third quarter, bringing its total to 1,234 shares worth $161,000, after purchasing an extra 662 shares. Raymond James & Associates also increased its shareholding by 12.7% by acquiring an additional 16,863 shares, resulting in a total of 149,361 shares valued at $20,954,000. Foundations Investment Advisors LLC's stake in Discover Financial Services rose by 16.3%, now holding 2,046 shares valued at $287,000 following the purchase of 286 shares. Sequoia Financial Advisors LLC similarly raised its position by 4.4%, owning a total of 6,191 shares valued at $869,000 after obtaining an additional 263 shares during the period. Additionally, Eastern Bank made a new investment in Discover Financial Services in the third quarter, valued at around $138,000. Currently, 86.94% of the company's stock is owned by institutional investors.

Recent Analyst Recommendations

In light of these developments, several research firms have provided updated ratings on Discover Financial Services. UBS Group upgraded the company’s shares from a "neutral" rating to a "buy" rating, raising the price target from $150 to $239, as indicated in a report released on January 13th. StockNews.com, on the other hand, downgraded Discover Financial Services from a "buy" rating to a "hold" rating in a note published on January 24th. Keefe, Bruyette & Woods increased their price target for the stock from $170 to $232, giving it an "outperform" rating in their report on December 9th. Meanwhile, JPMorgan Chase & Co. raised their price target as well, from $146 to $169, retaining a "neutral" rating. Barclays also adjusted their price objective from $186 to $209, awarding the stock an "overweight" rating. Currently, nine analysts recommend a hold rating while seven analysts suggest a buy rating. According to MarketBeat.com, Discover Financial Services has an average rating of "Hold" and a consensus price target of $186.46.

Current Trading Performance

As of the latest trading session, shares of Discover Financial Services opened at $194.21. The company has maintained a 50-day moving average of $186.87 and a 200-day moving average of $162.92. Discover Financial Services has a market capitalization of $48.81 billion, a price-to-earnings (P/E) ratio of 12.17, and a P/E to growth (P/E/G) ratio of 1.53; its beta sits at 1.46. The company’s current ratio stands at 1.09, the quick ratio at 1.03, and its debt-to-equity ratio is 1.09. Over the past year, Discover Financial Services recorded a low of $118.74 and a high of $205.76.

Dividend Announcement

In addition to these developments, Discover Financial Services has announced a forthcoming quarterly dividend. Shareholders on record by May 23rd will receive a dividend of $0.70, which translates to an annualized dividend of $2.80, marking a yield of 1.44%. The ex-dividend date for this payment is also set for May 23rd. Notably, the company has a payout ratio of 17.54%.

About Discover Financial Services

Discover Financial Services operates through its subsidiaries, offering a wide array of digital banking products and payment services in the United States. The business segments include Digital Banking and Payment Services. The Digital Banking segment is responsible for issuing Discover-branded credit cards targeted towards consumers, and providing various lending options, including personal loans and home loans, along with direct-to-consumer deposit products such as savings accounts and certificates of deposit.

Investment, Finance, Markets