June 16, 2023 – In a recent disclosure with the Securities and Exchange Commission, Rockefeller Capital Management L.P. revealed a significant decrease in their position in Discover Financial Services (NYSE:DFS) during the fourth quarter. The fund sold 668,913 shares of the financial services provider’s stock, resulting in a decrease of 29.1% of their shares in DFS.
This change in position has lowered DFS to become only the 14th biggest position in Rockefeller Capital Management L.P.’s portfolio, owning approximately 0.8% of their overall portfolio with a total worth of $159,756,000 at the end of the most recent reporting period.
Discover Financial Services last reported its quarterly earnings on Wednesday, April 19th where they posted $3.58 earnings per share for the quarter. This figure missed analysts’ consensus estimates by ($0.26). However, DFS experienced an increase in revenue from $2.9 billion to $3.75 billion year-over-year during this same period according to data from Bloomberg.com.
Several research reports have offered contrasting views about DFS’s future stocks beyond its current standing as a “hold” stock according to data from Bloomberg.com as ten analysts have rated it that rating while four chose to give it a “buy” rating with an average price target of $119.67.
JPMorgan Chase & Co., one such research firm, decreased their price objective on Discover Financial Services from $111.00 to $102 and Citigroup raised its target price from $115 to $116 while Wells Fargo & Company dropped their target price on shares of Discover Financial Services from $105 to $103 citing concerns over weaker than expected figures for GDP growth and personal consumption expenditures which could slow growth rates for consumer lenders like Discover Financial Services.
Royal Bank of Canada is among those who were bullish on Discover Financial Services after reiterating an “outperform” rating and issuing a $125.00 price objective on DFS’s shares on Friday, April 21st.
Investors remain unsure of the future outlook for Discover Financial Services, and with the current global economic climate still not able to provide consistent stability in investor confidence, the stock market is expected to remain volatile in the short-to-medium term.
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Institutional Investors Show Interest in Discover Financial Services
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”DFS” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]On Friday, June 16th, Discover Financial Services (NYSE:DFS) opened at $117.25 per share. This financial services provider has seen a range of institutional investors and hedge funds both buying and selling shares in the last quarter, with Kentucky Retirement Systems lifting its stake in the company by 0.4% in Q4 to now own 21,477 shares worth $2,101,000 following an additional purchase of 94 shares.
Penserra Capital Management LLC also increased its position in DFS by 7.2% during Q4, currently owning 1,451 shares valued at $141,000 after acquiring 97 more shares. Toroso Investments LLC had a boost of 3.1% in Q1 with their total number of DFS shares now standing at 3,299 which are worth $364,000 after purchasing another 98 shares.
TIAA FSB increased its holdings during the last quarter by 1.2%, owning approximately 8,532 shares which are worth $835,000 resulting from buying another 102 shares while Twin Capital Management Inc. raised its stake by another 0.4% owning a total of 28,669 shares of DFS valued at $2,805,000.
Hedge funds and other institutional investors make up over three quarters of DFS’s stock ownership with a total market capitalization of $29.78 billion that includes a P/E ratio of 7.90 and a P/E/G ratio of 1.55 together with a beta score of 1.43.
Furthermore on Thursday June the eighth they announced payment for their quarterly dividend with shareholders recorded on May26th recieveing payments totalling $0.70 per share; indicative that reinvestment may be profitable? The company also declared on April the nineteenth that it has authorized up to $2.7 billion for share repurchasing purposes suggesting management believe that their shares may be undervalued.
