JP Morgan slashes price target on Discover Financial Services [DFS] – find out why.

Discover Financial Services [NYSE: DFS] plunged by -$0.99 during the normal trading session on Tuesday and reaching a high of $92.78 during the day while it closed the day at $90.89. The company report on October 4, 2022 that Discover Brings Innovative Payment Solutions to Healthcare Through Partnership With TYDEi.

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Discover Global Network, the payments brand of Discover, will facilitate payments for TYDEi’s new healthcare vendor management system, thereby digitizing and streamlining payments in an industry where 85 percent of healthcare purchasing is done manually via paper checks. This partnership will contribute to improved solutions addressing the nearly $40 billion in waste and inefficiencies associated with healthcare invoicing.1.

TYDEi’s solution offers an industry-first solution for hospitals to connect with their suppliers. It reduces common frictions in hospital purchasing by moving the procurement process to a block-chain enabled platform that reduces costs and risks for hospitals. The partnership with Discover Global Network will enable TYDEi’s payments platform, offering hospitals a streamlined and secure way to pay for and track payment for supplies. Currently, Day Kimball Healthcare (Putnam, CT) and Lighthouse Surgery Center (Hartford, CT) use the TYDEi platform.

Discover Financial Services stock has also loss -6.68% of its value over the past 7 days. However, DFS stock has declined by -8.80% in the 3 months of the year. Over the past six months meanwhile, it has lost -18.24% and lost -21.35% year-on date.

The market cap for DFS stock reached $25.34 billion, with 279.00 million shares outstanding and 271.47 million shares in the current float. Compared to the average trading volume of 1.64M shares, DFS reached a trading volume of 4947527 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about 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 $118.06 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 2.20. 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.

JP Morgan have made an estimate for Discover Financial Services shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on September 06, 2022. While these analysts kept the previous recommendation, Citigroup dropped their target price from $140 to $115. The new note on the price target was released on July 22, 2022, representing the official price target for Discover Financial Services stock. Previously, the target price had yet another raise to $97, while Wolfe Research analysts kept a Peer Perform rating on DFS stock. On February 14, 2022, analysts increased their price target for DFS shares from 140 to 145.

The Average True Range (ATR) for Discover Financial Services is set at 2.99, with the Price to Sales ratio for DFS stock in the period of the last 12 months amounting to 2.29. The Price to Book ratio for the last quarter was 2.00. Price to Free Cash Flow for DFS in the course of the last twelve months was 4.60.

DFS stock trade performance evaluation

Discover Financial Services [DFS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.68. With this latest performance, DFS shares dropped by -12.01% in over the last four-week period, additionally sinking by -18.24% over the last 6 months – not to mention a drop of -27.70% 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 37.78, with the RSI for the last a single of trading hit 35.52, and the three-weeks RSI is set at 39.65 for Discover Financial Services [DFS]. The present Moving Average for the last 50 days of trading for this stock 100.30, while it was recorded at 93.63 for the last single week of trading, and 108.17 for the last 200 days.

Discover Financial Services [DFS]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Discover Financial Services [DFS] shares currently have an operating margin of +56.66. Discover Financial Services’s Net Margin is presently recorded at +42.35.

Return on Equity for this stock inclined to 44.62, with Return on Assets sitting at 4.84.

Discover Financial Services [DFS]: Insider Ownership positions

There are presently around $21,127 million, or 86.30% of DFS stock, in the hands of institutional investors. The top three institutional holders of DFS stocks are: VANGUARD GROUP INC with ownership of 35,385,646, which is approximately -0.541% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 20,661,637 shares of the stock with an approximate value of $1.88 billion in DFS stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $1.41 billion in DFS stock with ownership of nearly -22.399% of the company’s market capitalization.

Positions in Discover Financial Services stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 411 institutional holders increased their position in Discover Financial Services [NYSE:DFS] by around 13,934,651 shares. Additionally, 436 investors decreased positions by around 17,850,819 shares, while 193 investors held positions by with 200,655,192 shares. The mentioned changes placed institutional holdings at 232,440,662 shares, according to the latest SEC report filing. DFS stock had 95 new institutional investments in for a total of 2,359,955 shares, while 97 institutional investors sold positions of 1,890,929 shares during the same period.


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