Discover Financial Services (NYSE: DFS)’s stock price has decreased by -2.49 compared to its previous closing price of 126.73. However, the company has seen a -4.22% decrease in its stock price over the last five trading sessions. PYMNTS reported 2024-04-25 that Capital One’s first quarter results showed consumers continue to spend on their cards — and management touted the benefits of the proposed $35 billion buyout of Discover Financial Services. Purchase volume on its cards was up 6% year over year to $146.6 billion, but was 7% below the fourth quarter of 2023.
Is It Worth Investing in Discover Financial Services (NYSE: DFS) Right Now?
The price-to-earnings ratio for Discover Financial Services (NYSE: DFS) is above average at 14.10x. The 36-month beta value for DFS is also noteworthy at 1.43. There are mixed opinions on the stock, with 8 analysts rating it as a “buy,” 8 rating it as “overweight,” 8 rating it as “hold,” and 1 rating it as “sell.”
The public float for DFS is 249.16M, and at present, short sellers hold a 1.11% of that float. The average trading volume of DFS on May 02, 2024 was 2.03M shares.
DFS’s Market Performance
DFS’s stock has seen a -4.22% decrease for the week, with a -3.31% drop in the past month and a 17.12% gain in the past quarter. The volatility ratio for the week is 2.10%, and the volatility levels for the past 30 days are at 2.11% for Discover Financial Services The simple moving average for the last 20 days is -1.11% for DFS stock, with a simple moving average of 19.02% for the last 200 days.
Analysts’ Opinion of DFS
Many brokerage firms have already submitted their reports for DFS stocks, with Morgan Stanley repeating the rating for DFS by listing it as a “Overweight.” The predicted price for DFS in the upcoming period, according to Morgan Stanley is $133 based on the research report published on February 08, 2024 of the current year 2024.
HSBC Securities, on the other hand, stated in their research note that they expect to see DFS reach a price target of $107, previously predicting the price at $121. The rating they have provided for DFS stocks is “Hold” according to the report published on January 19th, 2024.
Deutsche Bank gave a rating of “Hold” to DFS, setting the target price at $140 in the report published on January 10th of the current year.
DFS Trading at -0.39% from the 50-Day Moving Average
After a stumble in the market that brought DFS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -6.13% of loss for the given period.
Volatility was left at 2.11%, however, over the last 30 days, the volatility rate increased by 2.10%, as shares sank -2.61% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -0.68% lower at present.
During the last 5 trading sessions, DFS fell by -4.22%, which changed the moving average for the period of 200-days by +2.67% in comparison to the 20-day moving average, which settled at $124.80. In addition, Discover Financial Services saw 9.95% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DFS starting from Greene John, who sale 35,191 shares at the price of $106.51 back on Jan 26 ’24. After this action, Greene John now owns 18,592 shares of Discover Financial Services, valued at $3,748,193 using the latest closing price.
Stock Fundamentals for DFS
Current profitability levels for the company are sitting at:
- 0.36 for the present operating margin
- 1.0 for the gross margin
The net margin for Discover Financial Services stands at 0.12. The total capital return value is set at 0.05. Equity return is now at value 15.62, with 1.59 for asset returns.
Based on Discover Financial Services (DFS), the company’s capital structure generated 0.58 points at debt to capital in total, while cash flow to debt ratio is standing at 0.33. The debt to equity ratio resting at 1.39. The interest coverage ratio of the stock is 2.64.
Currently, EBITDA for the company is 168.0 million with net debt to EBITDA at -3.52. When we switch over and look at the enterprise to sales, we see a ratio of 1.23. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.56.
Conclusion
In summary, Discover Financial Services (DFS) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
