Discover Financial Services [NYSE: DFS] stock went on an upward path that rose over 12.61% on Tuesday, amounting to a one-week price increase of more than 12.60%. The company report on February 19, 2024 at 6:41 PM that Capital One to Acquire Discover.
Under the terms of the agreement, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a premium of 26.6% based on Discover’s closing price of $110.49 on February 16, 2024. Transaction is 100% stock consideration.
Creates a global payments platform at scale, with 70 million merchant acceptance points in more than 200 countries and territories.
Over the last 12 months, DFS stock rose by 11.46%. The one-year Discover Financial Services stock forecast points to a potential downside of -7.78. The average equity rating for DFS stock is currently 2.13, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $31.11 billion, with 267.38 million shares outstanding and 248.35 million shares in the current float. Compared to the average trading volume of 2.11M shares, DFS stock reached a trading volume of 22437421 in the most recent trading day, which is why market watchdogs consider the stock to be active.
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 $115.44 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 2.13. 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.
Morgan Stanley have made an estimate for Discover Financial Services shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on February 08, 2024. While these analysts kept the previous recommendation, HSBC Securities dropped their target price from $121 to $107. The new note on the price target was released on January 19, 2024, representing the official price target for Discover Financial Services stock. Previously, the target price had yet another raise to $140, while Deutsche Bank analysts kept a Hold rating on DFS stock. On January 03, 2024, analysts increased their price target for DFS shares from 104 to 129.
The Average True Range (ATR) for Discover Financial Services is set at 3.43, with the Price to Sales ratio for DFS stock in the period of the last 12 months amounting to 1.51. The Price to Book ratio for the last quarter was 2.36. Price to Free Cash Flow for DFS in the course of the last twelve months was 4.11.
DFS Stock Performance Analysis:
Discover Financial Services [DFS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.60. With this latest performance, DFS shares gained by 27.83% in over the last four-week period, additionally plugging by 33.30% over the last 6 months – not to mention a rise of 11.46% 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 77.12, with the RSI for the last a single of trading hit 83.89, and the three-weeks RSI is set at 72.60 for Discover Financial Services [DFS]. The present Moving Average for the last 50 days of trading for this stock 107.91, while it was recorded at 112.63 for the last single week of trading, and 100.15 for the last 200 days.
Insight into Discover Financial Services Fundamentals:
Discover Financial Services’s liquidity data is similarly interesting compelling, with a Current Ratio set at 1.41.
DFS Stock EPS
With the latest financial reports released by the company, Discover Financial Services posted 3.58/share EPS, while the average EPS was predicted by analysts to be reported at 3.91/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -8.40%. 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 -7.29%.
Discover Financial Services [DFS] Institutonal Ownership Details
The top three institutional holders of DFS stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in DFS stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in DFS stock with ownership which is approximately 5.8325%.
