Atlantic Union Bankshares Corp, a financial institution, has significantly increased its investment in Discover Financial Services during the second quarter of this year. According to the company’s latest filing with the Securities and Exchange Commission on September 19, 2023, Atlantic Union Bankshares Corp now holds 11,492 shares of Discover Financial Services stock. This represents a substantial increase of 231.4% compared to the previous quarter when they owned only 3,468 shares.
The additional shares purchased by Atlantic Union Bankshares Corp are valued at approximately $1,343,000. This considerable investment indicates their confidence in the future growth and profitability of Discover Financial Services.
Discover Financial Services recently released its quarterly earnings data on July 20th, 2023. For the second quarter, the company reported earnings per share (EPS) of $3.54, falling short of analysts’ consensus estimate by ($0.16). Despite this slight miss, Discover Financial Services still maintained a net margin of 21.51% and a return on equity of 29.65%.
In terms of revenue, Discover Financial Services generated $3.88 billion during the second quarter. Although this figure aligned with analysts’ expectations, it reflected an impressive increase of 20.7% compared to the same period last year.
Looking ahead, financial analysts project that Discover Financial Services will achieve an EPS of $12.95 for the current fiscal year. This projection signifies optimism regarding Discover Financial Services’ ability to continue its positive performance and deliver value to its shareholders.
This latest development underscores Atlantic Union Bankshares Corp’s belief that Discover Financial Services is a sound investment choice within the financial services sector. As both companies look towards their future prospects, shareholders and investors will closely monitor any further developments and financial reports issued by Discover Financial Services in order to make informed decisions on their portfolios.
Disclaimer: The information provided here is solely for informational purposes and should not be considered as financial advice. We recommend consulting with a professional advisor before making any investment decisions.
Realty Income Corporation
O
Strong Buy
Updated on: 27/09/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Institutional Investors Show Confidence in Discover Financial Services Amidst Ownership Changes
Discover Financial Services, a leading financial services provider, has recently seen changes in its ownership by institutional investors. B. Metzler seel. Sohn & Co. AG increased its position in the company by 0.9% during the first quarter, now owning 32,453 shares worth $3,208,000. Duality Advisers LP also acquired a new position in Discover Financial Services during the same period with an estimated value of approximately $805,000.
Another institutional investor that increased its stake in the company is American Century Companies Inc., which now owns 131,627 shares worth $12,877,000 after buying an additional 30,058 shares during the fourth quarter. Financial Advocates Investment Management also expanded its position in Discover Financial Services by 3.5% during the first quarter and currently owns 5,729 shares valued at $566,000.
The most significant increase in ownership came from CBOE Vest Financial LLC with a substantial growth rate of 273.5% during the first quarter. The company now holds 14,628 shares worth $1,446,000 after acquiring an additional 10,712 shares.
These recent changes highlight the interest of institutional investors in Discover Financial Services and their confidence in its potential for growth and profitability. It is worth noting that hedge funds and other institutional investors collectively own 83.63% of the company’s stock.
Turning to the company’s performance in the market, Discover Financial Services opened at $88.47 on Tuesday. Its fifty-day moving average stands at $100.18 while its two-hundred-day moving average is slightly higher at $102.93.
With a debt-to-equity ratio of 1.58 and quick ratio of 1.14 (indicating liquidity), Discover Financial Services has demonstrated stability and sound financial management practices.
The company boasts a market capitalization of $22.11 billion and a price-to-earnings ratio of 6.13, suggesting that its stock price is undervalued relative to its earnings. Moreover, the PEG ratio of 1.26 implies that the stock may be considered a good investment opportunity.
However, it should be noted that Discover Financial Services has experienced fluctuations in its stock price over the past year. Its one-year low was $87.45, while its one-year high reached $122.50.
In terms of dividend distribution, Discover Financial Services recently disclosed a quarterly dividend. Stockholders of record on Thursday, August 24th received a $0.70 dividend per share. With an ex-dividend date of Wednesday, August 23rd, the annualized dividend amounts to $2.80 and offers investors a dividend yield of 3.16%. This demonstrates the company’s commitment to providing returns to its shareholders.
Various research firms have shared their insights on Discover Financial Services. Jefferies Financial Group raised their target price from $125.00 to $135.00 in their research report published on Tuesday, July 11th. Royal Bank of Canada lowered their target price to $130.00 but maintained an “outperform” rating on the stock in their report on Friday, July 21st.
Wolfe Research upgraded their rating for Discover Financial Services from “peer perform” to “outperform” and set a target price of $104.00 on the stock in their report released on Thursday, August 24th.
StockNews.com initiated coverage on Discover Financial Services and issued a “hold” rating on Thursday, August 17th.
The Goldman Sachs Group also decreased their target price from $128.00 to $109.00 but maintained a “buy” rating for the company in their report published on Monday, August 21st.
Overall, eleven equities research analysts have rated Discover Financial Services as “hold,” while four have given it a “buy” rating. According to Bloomberg, the average rating for Discover Financial Services is presently “Hold,” with a consensus target price of $113.13.
These assessments indicate a mixed outlook for the company, reflecting uncertainty and differing opinions among analysts. Investors should carefully consider these recommendations before making any decisions.
In conclusion, institutional investors have recently made changes to their ownership stakes in Discover Financial Services, highlighting their interest in the company’s potential. The company’s stock performance, dividend payout, and ratings by research firms provide valuable insights for investors to assess the future prospects of Discover Financial Services.
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