Streetbeat News

DFS

Discover Financial Services

https://www.discover.com

Industry

Financial - Credit Services

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; private student loans, personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts. The Payment Services segment operates the PULSE, an automated teller machine, debit, and electronic funds transfer network; and Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services, as well as offers payment transaction processing and settlement services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.

Open

175.50

Mkt cap

44B

Volume

339K

High

176.65

P/E Ratio

14.07

52-wk high

188.26

Low

173.36

Div yield

0.02

52-wk low

82.15

Credit card delinquencies in the U.S. hit a 12-year high in Q4 2023, according to the Philadelphia Fed. The report indicates a troubling trend for consumers and credit card issuers, with nearly 3.5% of users carrying balances past due dates. Credit card companies are responding by lowering credit limits, with the median limit for new cards dropping from $3,368 to $3,000. Mastercard and Visa are raising fees to offset losses from an antitrust settlement. The largest credit card issuers, including JPMorgan Chase, Capital One, Citigroup, Discover, Bank of America, and American Express, are likely to be affected. Capital One's planned acquisition of Discover could create the largest credit card company in the U.S. ETFs like iShares US Financial Services ETF and Financial Select Sector SPDR Fund, with significant exposure to these companies, could also be impacted.

Portfolio Pulse from Natan Ponieman

April 11, 2024 | 8:39 pm

Wells Fargo analyst Donald Fandetti has maintained an Equal-Weight rating on Discover Financial Services (DFS) and increased the price target from $105 to $135.

Portfolio Pulse from Benzinga Newsdesk

April 10, 2024 | 4:08 pm

President Biden's new student debt relief plan aims to forgive debt for nearly 30 million Americans, targeting specific borrower groups to avoid unconstitutionality issues. While most U.S. student debt is federal, private loans make up 7.5% of the total. The plan could impact private lenders by reducing their market share due to better federal loan accessibility and repayment options. SLM Corp, SoFi Technologies Inc, Navient Corp, Discover Financial Services, and Citizens Financial Group Inc are mentioned as companies that might be affected.

Portfolio Pulse from Natan Ponieman

April 09, 2024 | 9:24 pm

Barclays analyst Terry Ma maintains an Equal-Weight rating on Discover Financial Services (DFS) and raises the price target from $112 to $120.

Portfolio Pulse from Benzinga Newsdesk

April 09, 2024 | 11:41 am

Discover Financial Services (NYSE:DFS) has seen a 7.09% increase in its short percent of float since the last report, with 2.96 million shares sold short, representing 1.36% of available shares. This indicates a bearish sentiment among investors, although it's below the peer group average of 8.37%. The short interest suggests caution but doesn't necessarily predict a price drop.

Portfolio Pulse from Benzinga Insights

April 08, 2024 | 1:00 pm

President Joe Biden is expected to announce a new student loan forgiveness plan, following the Supreme Court's overturning of a previous plan. The Biden administration has already approved nearly $138 billion in relief, benefiting over 4 million borrowers. This news has impacted stocks of student loan collection companies, with SoFi Technologies and SLM Corp seeing increases, while Nelnet Inc. and Navient Corp experienced decreases. Discover Financial Services, rumored to be selling its student loan unit, also saw a slight increase.

Portfolio Pulse from Anthony Noto

April 05, 2024 | 3:43 pm

Discover Financial Services (NYSE:DFS) has received mixed analyst ratings over the last three months, with a total of 14 evaluations ranging from bullish to bearish. The average 12-month price target for DFS has increased by 5.9% to $128.71. Analysts from firms including JP Morgan, HSBC, and Citigroup have adjusted their ratings and price targets, reflecting a positive shift in sentiment towards the company. Discover Financial has shown strong financial performance with a revenue growth rate of 12.77%, a net margin of 9.2%, and an ROE of 2.86%, indicating a solid market position and effective cost management.

Portfolio Pulse from Benzinga Insights

April 03, 2024 | 1:01 pm

JP Morgan analyst Richard Shane maintains a Neutral rating on Discover Financial Services (NYSE:DFS) and raises the price target from $110 to $120.

Portfolio Pulse from Benzinga Newsdesk

April 03, 2024 | 11:31 am

Ally Financial Inc has announced Michael G. Rhodes as its new CEO, effective April 29, 2024. Rhodes, previously CEO at Discover Financial Services, replaces Jeffrey J. Brown. Discover Financial has appointed J. Michael Shepherd as Interim CEO following Rhodes' departure. Investors can gain exposure to ALLY through ETFs like RDIV and NUMV. ALLY shares saw a slight decrease in premarket trading.

Portfolio Pulse from Lekha Gupta

March 28, 2024 | 11:21 am

Discover Financial Services (NYSE:DFS) has significantly outperformed the market with an annualized return of 22.04% over the past 15 years, turning a $100 investment into $2,166.61 today. The company currently boasts a market capitalization of $31.38 billion.

Portfolio Pulse from Benzinga Insights

March 25, 2024 | 8:00 pm

All corporate logos and prices are for illustrative purposes only and are not a recommendation, an offer to sell, or a solicitation of an offer to buy any security.