Discover Financial Services, the NYSE listed credit card provider and banking services company, is making significant headlines with a proposed acquisition by Capital One for $35 billion. This garnered a mixed reaction from the investment community, with some speculating about
the potential benefits and risks associated. Capital One's stock price decreased following the merger announcement, suggesting investor apprehension. Meanwhile, Discover's stock price fluctuated, underperforming the market some days and outperforming on others.
Furthermore, Discover Financial's Q4 earnings showed a noteworthy dip due to a rise in charge-offs. Its delinquency rate also rose, echoing pre-pandemic levels. Despite these setbacks, the company announced a dividend of $0.70 per share. Meanwhile, the company shows indications of expansion, forging an alliance with Buy It Mobility and planning a presence in Bahrain through a partnership with Eazy Financial.
Institutional ownership of the company is strong, with 88% of the company's stock held by institutional investors. Most recent data shows Discover's Q1 2024 EPS as $1.10. Looking forward, the FY 2024 earnings are expected to be $10.00 per share. Analysts caution, however, that despite recent upticks in the stock's performance and appealing dividend payouts, investors should remain vigilant about Discover's financial outlook given recent decreases in net income and concerns about increasing compliance costs.
Discover Financial Services DFS News Analytics from Thu, 17 Aug 2023 07:00:00 GMT to Wed, 08 May 2024 10:37:48 GMT - Rating 4 - Innovation 0 - Information 6 - Rumor -3
