Discover Financial Services (NYSE:DFS) Shares Gap Up - Still a Buy?

Discover Financial Services (NYSE:DFS)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $159.63, but opened at $170.52. Discover Financial Services shares last traded at $164.25, with a volume of 663,298 shares changing hands.

Analyst Upgrades and Downgrades

DFS has been the topic of several recent research reports. Royal Bank of Canada boosted their price objective on shares of Discover Financial Services from $193.00 to $210.00 and gave the company a "sector perform" rating in a research note on Friday, January 24th. Truist Financial increased their price target on shares of Discover Financial Services from $219.00 to $229.00 and gave the stock a "buy" rating in a report on Friday. Wells Fargo & Company lifted their price objective on Discover Financial Services from $185.00 to $214.00 and gave the company an "equal weight" rating in a report on Friday, January 24th. TD Securities dropped their target price on Discover Financial Services from $188.00 to $184.00 and set a "buy" rating on the stock in a research report on Thursday. Finally, UBS Group upgraded Discover Financial Services from a "neutral" rating to a "buy" rating and lifted their price target for the company from $150.00 to $239.00 in a research note on Monday, January 13th. Seven research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to MarketBeat, Discover Financial Services has an average rating of "Hold" and a consensus target price of $188.91.

Discover Financial Services Trading Down 1.3 %

The company has a market cap of $46.55 billion, a price-to-earnings ratio of 11.59, a PEG ratio of 1.51 and a beta of 1.20. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.09 and a quick ratio of 1.03. The business's 50-day simple moving average is $169.86 and its 200-day simple moving average is $173.61.

Discover Financial Services (NYSE:DFS - Get Free Report) last posted its earnings results on Wednesday, April 23rd. The financial services provider reported $4.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.33 by $0.92. The firm had revenue of $4.25 billion for the quarter, compared to analyst estimates of $4.25 billion. Discover Financial Services had a return on equity of 26.18% and a net margin of 17.29%. Research analysts predict that Discover Financial Services will post 13.88 earnings per share for the current fiscal year.

Institutional Trading of Discover Financial Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DFS. Opal Wealth Advisors LLC acquired a new stake in shares of Discover Financial Services during the 1st quarter worth about $25,000. ORG Wealth Partners LLC purchased a new position in shares of Discover Financial Services during the first quarter valued at approximately $26,000. Golden State Wealth Management LLC boosted its position in Discover Financial Services by 438.2% during the first quarter. Golden State Wealth Management LLC now owns 183 shares of the financial services provider's stock worth $31,000 after acquiring an additional 149 shares during the last quarter. SBI Securities Co. Ltd. purchased a new stake in Discover Financial Services in the 4th quarter worth approximately $33,000. Finally, Flagship Wealth Advisors LLC acquired a new position in Discover Financial Services in the 4th quarter valued at $34,000. Hedge funds and other institutional investors own 86.94% of the company's stock.

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.