BMO Capital Markets slashes price target on Discover Financial Services [DFS] – find out why.

Discover Financial Services [NYSE: DFS] price surged by 1.12 percent to reach at $1.1. The company report on April 22, 2021 that Discover Named a 2021 FutureEdge 50 Winner for Platform to Detect Data Anomalies in Real Time.

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For the fourth year in a row, Discover has been recognized as a FutureEdge 50 award winner. This honor is awarded to organizations pushing the edge with new technologies to advance their business for the future. Discover was recognized for READAR, a self-service platform which detects data anomalies using pattern matching in real-time. This enables teams to react to data anomalies and take action to prevent future occurrences improving operational excellence.

“We are utilizing cutting edge cloud technology to change and simplify business support processes that will save Discover money and time,” said Brent DeMar, director of Cloud Data Products at Discover. “Addressing data anomalies causes additional work for our people, preventing them from focusing on higher value projects. The new technology in READAR tackles identifying anomalies in real time and taking appropriate action with minimal delay. As we take this product innovation to the next level, READAR will soon work to detect anomalies at the business process level and even learn to predict for things we aren’t explicitly monitoring.”.

A sum of 3211922 shares traded at recent session while its average daily volume was at 2.53M shares. Discover Financial Services shares reached a high of $101.54 and dropped to a low of $97.84 until finishing in the latest session at $99.50.

The one-year DFS stock forecast points to a potential upside of 10.81. The average equity rating for DFS stock is currently 2.30, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Discover Financial Services [DFS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DFS shares is $111.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DFS stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for Discover Financial Services shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on April 19, 2021. The new note on the price target was released on December 07, 2020, representing the official price target for Discover Financial Services stock. Previously, the target price had yet another raise to $107, while Morgan Stanley analysts kept a Equal-Weight rating on DFS stock.

The Average True Range (ATR) for Discover Financial Services is set at 3.12, with the Price to Sales ratio for DFS stock in the period of the last 12 months amounting to 2.74. The Price to Book ratio for the last quarter was 3.11, with the Price to Cash per share for the same quarter was set at 51.59. Price to Free Cash Flow for DFS in the course of the last twelve months was 5.64.

DFS Stock Performance Analysis:

Discover Financial Services [DFS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.45. With this latest performance, DFS shares gained by 8.18% in over the last four-week period, additionally plugging by 57.94% over the last 6 months – not to mention a rise of 183.07% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DFS stock in for the last two-week period is set at 53.25, with the RSI for the last a single of trading hit 52.19, and the three-weeks RSI is set at 53.83 for Discover Financial Services [DFS]. The present Moving Average for the last 50 days of trading for this stock 97.08, while it was recorded at 99.52 for the last single week of trading, and 75.89 for the last 200 days.

Insight into Discover Financial Services Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Discover Financial Services [DFS] shares currently have an operating margin of +12.28. Discover Financial Services’s Net Margin is presently recorded at +8.76.

Return on Total Capital for DFS is now 4.56, given the latest momentum, and Return on Invested Capital for the company is 3.77. Return on Equity for this stock inclined to 9.98, with Return on Assets sitting at 1.00. When it comes to the capital structure of this company, Discover Financial Services [DFS] has a Total Debt to Total Equity ratio set at 195.16. Additionally, DFS Total Debt to Total Capital is recorded at 66.12, with Total Debt to Total Assets ending up at 18.75. Long-Term Debt to Equity for the company is recorded at 173.22, with the Long-Term Debt to Total Capital now at 52.99.

Reflecting on the efficiency of the workforce at the company, Discover Financial Services [DFS] managed to generate an average of $64,489 per employee.

DFS Stock EPS

With the latest financial reports released by the company, Discover Financial Services posted -1.2/share EPS, while the average EPS was predicted by analysts to be reported at -0.28/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -328.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DFS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Discover Financial Services go to 6.27%.

Discover Financial Services [DFS] Insider Position Details

There are presently around $26,126 million, or 88.80% of DFS stock, in the hands of institutional investors. The top three institutional holders of DFS stocks are: VANGUARD GROUP INC with ownership of 33,470,438, which is approximately -1.563% of the company’s market cap and around 0.50% of the total institutional ownership; FMR LLC, holding 20,765,946 shares of the stock with an approximate value of $2.07 billion in DFS stocks shares; and BLACKROCK INC., currently with $1.94 billion in DFS stock with ownership of nearly -3.725% of the company’s market capitalization.

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Positions in Discover Financial Services stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 432 institutional holders increased their position in Discover Financial Services [NYSE:DFS] by around 33,099,080 shares. Additionally, 366 investors decreased positions by around 28,729,408 shares, while 124 investors held positions by with 200,743,817 shares. The mentioned changes placed institutional holdings at 262,572,305 shares, according to the latest SEC report filing. DFS stock had 179 new institutional investments in for a total of 12,699,282 shares, while 65 institutional investors sold positions of 8,534,399 shares during the same period.

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