Discover Financial Services (NYSE:DFS) shares traded lower over the last trading session, losing -0.83% on 12/11/20. The shares fell to a low of $81.935 before closing at $83.46. Intraday shares traded counted 4.01 million, which was -34.96% lower than its 30-day average trading volume of 2.97M. DFS’s previous close was $84.16 while the outstanding shares total 306.00M. The firm has a beta of 1.77, a 12-month trailing P/E ratio of 25.59, and a growth ratio of 36.55. The stock’s Relative Strength Index (RSI) is 63.83, with weekly volatility at 2.41% and ATR at 2.82. The DFS stock’s 52-week price range has touched low of $23.25 and a $87.43 high.
Investors have identified the Credit Services company Discover Financial Services as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $25.79 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Discover Financial Services (DFS) Fundamentals that are to be considered.
DFS were able to record 4.36 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 3.13 billion. In cash movements, the company had a total of 4.56 billion as operating cash flow.
Potential earnings growth for Discover Financial Services (DFS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Discover Financial Services recorded a total of 2.68 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -13.39% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 0.34%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 416.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 2.27 billion. This allows shareholders to hold on to 306.00M with the recently reported earning now reading 2.45 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (2.45 cents a share).
Having a look at the company’s valuation, the company is expected to record 7.49 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DFS sounds very interesting.
Is the stock of DFS attractive?
In related news, EVP – Chief HR & Admin Officer, Eichfeld Robert Andrew sold 1,519 shares of the company’s stock in a transaction that recorded on Nov 06. The sale was performed at an average price of 67.77, for a total value of 102,938. As the sale deal closes, the Director, BUSH MARY K now sold 1,920 shares of the company’s stock, valued at 94,522. Also, EVP – Chief HR & Admin Officer, Eichfeld Robert Andrew bought 12,650 shares of the company’s stock in a deal that was recorded on May 06. The shares were price at an average price of 39.50 per share, with a total market value of 499,675. Following this completion of acquisition, the EVP, Pres. – Consumer Banking, Minetti Carlos now holds 3,000 shares of the company’s stock, valued at 221,206. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
12 out of 23 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on Discover Financial Services. 0 analysts has assigned a Sell rating on the DFS stock. The 12-month mean consensus price target for the company’s shares has been set at $84.00.