Discover Financial Services (NYSE:DFS) Sees Large Growth in Short Interest

Discover Financial Services (NYSE:DFS) saw a significant growth in short interest during the month of October. As of October 31st, there was short interest totalling 4,270,000 shares, a growth of 13.0% from the October 15th total of 3,780,000 shares. Based on an average trading volume of 1,450,000 shares, the short-interest ratio is presently 2.9 days. Currently, 1.7% of the company's stock are sold short.

Discover Financial Services Stock Performance

Shares of NYSE:DFS traded down $2.85 during trading on Monday, hitting $173.22. 1,049,484 shares of the stock traded hands, compared to its average volume of 1,684,828. The company has a quick ratio of 1.04, a current ratio of 1.08 and a debt-to-equity ratio of 1.28. The company has a fifty day moving average price of $147.90 and a two-hundred day moving average price of $136.07. Discover Financial Services has a 52-week low of $85.19 and a 52-week high of $188.26. The company has a market cap of $43.49 billion, a price-to-earnings ratio of 14.21, a P/E/G ratio of 1.14 and a beta of 1.41.

Discover Financial Services (NYSE:DFS - Get Free Report) last posted its earnings results on Wednesday, October 16th. The financial services provider reported $3.69 EPS for the quarter, beating analysts' consensus estimates of $3.28 by $0.41. The firm had revenue of $5.91 billion for the quarter, compared to analysts' expectations of $4.36 billion. Discover Financial Services had a return on equity of 21.38% and a net margin of 13.78%. During the same period last year, the firm earned $2.59 EPS. As a group, equities analysts predict that Discover Financial Services will post 13.23 EPS for the current year.

Discover Financial Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 5th. Stockholders of record on Thursday, November 21st will be given a dividend of $0.70 per share. The ex-dividend date of this dividend is Thursday, November 21st. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.62%. Discover Financial Services's dividend payout ratio (DPR) is 22.60%.

Institutional Investors Weigh In On Discover Financial Services

Several institutional investors and hedge funds have recently added to or reduced their stakes in DFS. Elser Financial Planning Inc purchased a new stake in shares of Discover Financial Services during the second quarter worth about $91,044,000. FMR LLC increased its stake in Discover Financial Services by 8.0% during the 3rd quarter. FMR LLC now owns 7,493,862 shares of the financial services provider's stock worth $1,051,314,000 after buying an additional 558,227 shares in the last quarter. Magnetar Financial LLC purchased a new stake in Discover Financial Services during the 1st quarter worth approximately $71,693,000. Samlyn Capital LLC raised its holdings in shares of Discover Financial Services by 368.0% during the second quarter. Samlyn Capital LLC now owns 646,691 shares of the financial services provider's stock valued at $84,594,000 after acquiring an additional 508,504 shares during the last quarter. Finally, National Bank of Canada FI lifted its position in shares of Discover Financial Services by 430.5% in the first quarter. National Bank of Canada FI now owns 443,707 shares of the financial services provider's stock valued at $54,752,000 after acquiring an additional 360,074 shares in the last quarter. Hedge funds and other institutional investors own 86.94% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Royal Bank of Canada raised their price objective on Discover Financial Services from $148.00 to $161.00 and gave the stock a "sector perform" rating in a research report on Friday, October 18th. Evercore ISI increased their price target on Discover Financial Services from $156.00 to $163.00 and gave the company an "in-line" rating in a research note on Wednesday, October 30th. Wells Fargo & Company boosted their price target on Discover Financial Services from $152.00 to $160.00 and gave the stock an "equal weight" rating in a research note on Friday, October 18th. Finally, StockNews.com downgraded shares of Discover Financial Services from a "buy" rating to a "hold" rating in a report on Monday, November 4th. Thirteen investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $138.81.

About Discover Financial Services

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.