Fintel reports that on October 6, 2023, Citigroup maintained coverage of Discover Financial Services (NYSE:DFS) with a Neutral recommendation.
Analyst Price Forecast Suggests 27.95% Upside
As of October 5, 2023, the average one-year price target for Discover Financial Services is 113.48. The forecasts range from a low of 94.94 to a high of $143.85. The average price target represents an increase of 27.95% from its latest reported closing price of 88.69.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Discover Financial Services is 14,658MM, an increase of 35.85%. The projected annual non-GAAP EPS is 14.06.
Discover Financial Services Declares $0.70 Dividend
On July 19, 2023 the company declared a regular quarterly dividend of $0.70 per share ($2.80 annualized). Shareholders of record as of August 24, 2023 received the payment on September 7, 2023. Previously, the company paid $0.70 per share.
At the current share price of $88.69 / share, the stock's dividend yield is 3.16%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.35%, the lowest has been 1.39%, and the highest has been 6.60%. The standard deviation of yields is 0.73 (n=236).
The current dividend yield is 1.10 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.18. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.59%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1726 funds or institutions reporting positions in Discover Financial Services. This is a decrease of 34 owner(s) or 1.93% in the last quarter. Average portfolio weight of all funds dedicated to DFS is 0.25%, an increase of 1.50%. Total shares owned by institutions decreased in the last three months by 2.51% to 247,886K shares. 
The put/call ratio of DFS is 0.93, indicating a bullish outlook.
What are Other Shareholders Doing?
Capital World Investors holds 21,119K shares representing 8.45% ownership of the company. In it's prior filing, the firm reported owning 21,267K shares, representing a decrease of 0.70%. The firm increased its portfolio allocation in DFS by 9.25% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,903K shares representing 3.16% ownership of the company. In it's prior filing, the firm reported owning 8,101K shares, representing a decrease of 2.49%. The firm increased its portfolio allocation in DFS by 6.42% over the last quarter.
AWSHX - WASHINGTON MUTUAL INVESTORS FUND holds 7,370K shares representing 2.95% ownership of the company. No change in the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 6,047K shares representing 2.42% ownership of the company. In it's prior filing, the firm reported owning 6,229K shares, representing a decrease of 3.02%. The firm increased its portfolio allocation in DFS by 3.94% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 5,886K shares representing 2.36% ownership of the company. In it's prior filing, the firm reported owning 6,118K shares, representing a decrease of 3.93%. The firm increased its portfolio allocation in DFS by 9.19% over the last quarter.
Discover Financial Services Background Information
(This description is provided by the company.)
Discover Financial Servicesis a digital banking and payment services company with one of the most trusted brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network comprised of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance around the world.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
