Discover Financial Services (NYSE:DFS) finished Friday with a subtraction of -$0.4 to close at $88.74, a downside of -0.45 percent. An average of 3,000,880 shares of common stock have been traded in the last five days. There was a fall of -$4.60 in the past week, and it reached a new high 13 times over the past 12 months. The last 20 days have seen an average of 2,948,510 shares traded, while the 50-day average volume stands at 2,632,790.
DFS stock has decreased by -14.82% in the last month. The company shares reached their 1-month lowest point of $87.90 on 08/23/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $87.64 and a high of $122.50 in 52 weeks. It has reached a new high 18 times so far this year and lost -9.29% or -$9.09 in price. In spite of this, the price is down -27.56% from the 52-week high.
Insider Transactions
DFS stock investors should be aware that Discover Financial Services (DFS) stock had its last reported insider trading activity 176 days ago on Mar 03. In this transaction, the insider spent $1,538,804. EVP, Pres. – Consumer Banking, Minetti Carlos, disposed of 7,000 shares at a price of $118.00 on Feb 02. The insider now owns more than $826,000 worth of shares. Prior to that, EVP, Pres. – Consumer Banking Minetti Carlos went on to Sale 7,000 shares at $115.65 each on Feb 01. An amount of $809,550 was transacted.
Valuation Metrics
Discover Financial Services (DFS) has a trailing price-to-earnings (P/E) ratio of 6.14. The stock’s beta is 1.45. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.41, the price-to-book (PB) ratio at 1.75, and the price-to-cash flow ratio at 3.23.
The company has a payout ratio of 17.20%. The company’s most recent quarterly dividend payment was $0.70 a share, without any change from last year. Its latest increase dividend $0.10 reported on Wednesday April 19 2023.
Financial Health
Further, the company has a long term debt to equity ratio of 1.44 and a total debt to equity ratio of 1.58 for the quarter ending June 29. Its gross profit as reported stood at $11.0 billion compared to revenue of $12.86 billion.
Earnings Surprise
For the three-month period that ended June 29, Discover Financial Services had $20.28 billion in total debt. The analyst consensus anticipated Discover Financial Services’s latest quarter earnings to come in at $3.67 per share, but it turned out to be $3.54, a -3.50% surprise. At the end of the quarter ending June 29, Discover Financial Services’s stock balance sheet showed total debt was $20.28 billion. Shareholders own equity worth $249.95 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Discover Financial Services (DFS) price momentum. RSI 9-day as of the close on 25 August was 23.08%, suggesting the stock is oversold, with historical volatility in this time frame at 52.27%.
As of today, DFS’s price is $89.50 -4.93% or -$4.60 from its 5-day moving average. DFS is currently trading -15.22% lower than its 20-day SMA and -10.20% lower than its 100-day SMA. However, the stock’s current price level is -24.24% below the SMA50 and -12.15% below the SMA200.
The stochastic %K and %D were 5.17% and 5.44%, respectively, and the average true range (ATR) was 2.80. With the 14-day stochastic at 4.71% and the average true range at 2.86, the RSI (14) stands at 26.15%. The stock has reached -1.89 on the 9-day MACD Oscillator while the 14-day reading was at -6.55.
Analyst Ratings
Wolfe Research upgraded Discover Financial Services (NYSE: DFS) to a an Outperform rating in its most recent analyst report. Previously, the stock was rated as a Peer perform. The consensus rating for Discover Financial Services (DFS) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell DFS, while 13 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 9 others rate it as a “buy”.
What is DFS’s price target for the next 12 months?
Analysts predict a range of price targets between $90.00 and $137.00, with a median target of $110.50. Taking a look at these predictions, the average price target given by analysts for Discover Financial Services (DFS) stock is $113.41.
