The stock of Discover Financial Services (NYSE:DFS) decreased by -$9.69 on Tuesday to finish at $92.96, down -9.44 percent. The last five days have seen an average of 3,134,980 shares of common stock traded. 18 times new highs were reached in the current year, with a fall of -$4.87. The average number of shares traded over the last 20 days was 2,776,700, while the average volume over the last 50 days totaled 2,310,376.
DFS stock dropped -22.77% since last month. On 08/15/23, the company’s shares reached a one-month low of $91.62. The stock touched a high of $122.50 on 07/19/23, after rallying from a low of $87.64 in 52 weeks. The price of DFS stock has declined by -4.98% or -$4.87 this year, reaching a new high 18 times. Still, the stock price is down -24.11% from the 52-week high.
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Insider Transactions
DFS stock investors should be aware that Discover Financial Services (DFS) stock had its last reported insider trading activity 166 days ago on Mar 03. On Mar 03, EVP – Chief HR & Admin Officer Eichfeld Robert Andrew sold 13,477 shares at $114.18 each. This transaction resulted in the insider making $1,538,804. On Feb 02, Minetti Carlos sold 7,000 shares at a price of US$118.00. After the transaction, the insider now owns 114,493 shares. EVP, Pres. – Consumer Banking Minetti Carlos had earlier sold 7,000 shares on Feb 01 for $115.65 a share. The transaction was completed for $809,550.
Valuation Metrics
Discover Financial Services (DFS) has a trailing price-to-earnings (P/E) ratio of 6.43. Beta for the stock is 1.42. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.49, the price-to-book (PB) ratio of 1.84, and the price-to-cash flow ratio of 3.42.
Company paid $0.70 per share in dividends, remained unchanged from $0.70 last year.
Financial Health
The company’s long-term debt to equity ratio for the quarter ending June 29 is 1.44, and the total debt to equity ratio is 1.58. Discover Financial Services’s operating margin stood at 52.30% for the same period. Based on annual data, it had gross profit of $11.0 billion and revenue of $12.86 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. DFS’s return on assets (ROA) during the last 12 months has been 2.90%. There was a 19.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 29.10%.
Earnings Surprise
According to Discover Financial Services’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. It was predicted that Discover Financial Services’s quarterly earnings would be $3.54, but it ended up being $3.67, beating the consensus by -3.50%. At the end of Discover Financial Services’s most recent quarter ended June 29, its total debt was $20.28 billion. Equity owned by shareholders amounts to $249.95 million.
Technical Picture
Here’s a quick look at Discover Financial Services’s (DFS) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 16.75%, suggesting the stock is oversold, with a 49.59% historical volatility rate.
The stochastic %K and %D were 22.90% and 30.95% respectively, while the average true range (ATR) was 3.26. Based on the 14-day stochastic reading of 8.61%, the RSI (14) reading is 23.74%. On the 9-day MACD Oscillator, the stock is at -2.46, and the 14-day reading is at -3.28.
Analyst Ratings
Discover Financial Services (NYSE: DFS) was downgraded by Piper Sandler to a a Neutral rating in its latest research report. The stock was previously rated as a an Overweight. Analysts have assigned Discover Financial Services (DFS) an Overweight rating. DFS is a stock that is recommended for selling by 0 brokerage firms, while 14 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 8 others recommend it as a buy.
What is DFS’s price target for the next 12 months?
The current consensus forecast for the stock is between $90.00 and $137.00, with a median target price of $116.00. In analyzing these forecasts, the average price target given by analysts for Discover Financial Services (DFS) is $116.79.
