Short Interest Buzzer: Is Buying Discover Financial Services (NYSE:DFS), Having Lower Short Interest a Winning Strategy?

December 1, 2016 - By Hazel Jackson   ·   0 Comments

Short Interest Buzzer: Is Buying Discover Financial Services (NYSE:DFS), Having Lower Short Interest a Winning Strategy?

The stock of Discover Financial Services (NYSE:DFS) registered a decrease of 21.39% in short interest. DFS’s total short interest was 5.13 million shares in December as published by FINRA. Its down 21.39% from 6.52M shares, reported previously. With 2.73M shares average volume, it will take short sellers 2 days to cover their DFS’s short positions. The stock closed at $67.77 during the last session. It is down 19.57% since April 28, 2016 and is uptrending. It has outperformed by 13.64% the S&P500.

Discover Financial Services is a direct banking and payment services company. The company has a market cap of $26.79 billion. The Firm is a bank holding company, as well as a financial holding company. It has a 12.31 P/E ratio. The Firm operates through two divisions: Direct Banking, which includes consumer banking and lending products, specifically Discover-branded credit cards issued to individuals and small businesses on the Discover Network and other consumer banking services and products, including personal loans, home equity loans, and other consumer lending and deposit products, and Payment Services segment, which includes PULSE and its Network Partners business.

Insitutional Activity: The institutional sentiment decreased to 0.99 in Q2 2016. Its down 0.04, from 1.03 in 2016Q1. The ratio fall, as 47 funds sold all Discover Financial Services shares owned while 249 reduced positions. 73 funds bought stakes while 233 increased positions. They now own 333.34 million shares or 3.24% less from 344.50 million shares in 2016Q1.
Mitsubishi Ufj & Bk has invested 0.12% of its portfolio in Discover Financial Services (NYSE:DFS). Foster & Motley accumulated 48,669 shares or 0.51% of the stock. Moreover, Gulf Bankshares (Uk) Ltd has 0.12% invested in Discover Financial Services (NYSE:DFS) for 129,716 shares. Foundry Prtnrs Lc, a Minnesota-based fund reported 142,775 shares. Goldman Sachs Gru Incorporated holds 0.02% of its portfolio in Discover Financial Services (NYSE:DFS) for 1.13 million shares. Orrstown accumulated 0.03% or 540 shares. Credit Agricole S A has invested 0.06% of its portfolio in Discover Financial Services (NYSE:DFS). Prudential Inc holds 1.20 million shares or 0.11% of its portfolio. Burt Wealth Advsr, a Maryland-based fund reported 442 shares. Marshall Wace Llp holds 0.4% of its portfolio in Discover Financial Services (NYSE:DFS) for 895,000 shares. Macquarie Grp Ltd holds 274,409 shares or 0.03% of its portfolio. Rathbone Brothers Public Limited Company accumulated 0.3% or 102,864 shares. Next Fin Grp Inc Inc reported 535 shares or 0.01% of all its holdings. Qcm Cayman last reported 5,576 shares in the company. Moreover, Shelton Management has 0.02% invested in Discover Financial Services (NYSE:DFS) for 3,788 shares.

Discover Financial Services (NYSE:DFS) Ratings Coverage

Out of 21 analysts covering Discover Financial Services (NYSE:DFS), 13 rate it a “Buy”, 0 “Sell”, while 8 “Hold”. This means 62% are positive. Discover Financial Services has been the topic of 37 analyst reports since July 24, 2015 according to StockzIntelligence Inc. The rating was upgraded by Argus Research to “Buy” on Wednesday, December 16. Oppenheimer maintained Discover Financial Services (NYSE:DFS) rating on Thursday, January 28. Oppenheimer has “Outperform” rating and $67 price target. The firm has “Hold” rating given on Tuesday, December 22 by Evercore. The stock of Discover Financial Services (NYSE:DFS) earned “Neutral” rating by Wedbush on Tuesday, October 11. The firm has “Neutral” rating given on Wednesday, May 11 by Macquarie Research. The firm has “Top Pick” rating given on Thursday, January 28 by RBC Capital Markets. Stifel Nicolaus maintained Discover Financial Services (NYSE:DFS) on Thursday, July 23 with “Buy” rating. The rating was maintained by Credit Suisse on Wednesday, July 20 with “Outperform”. Bernstein maintained Discover Financial Services (NYSE:DFS) rating on Wednesday, April 20. Bernstein has “Outperform” rating and $71 price target. The stock of Discover Financial Services (NYSE:DFS) has “Buy” rating given on Wednesday, May 4 by Deutsche Bank.

DFS Company Profile

Discover Financial Services (DFS), incorporated on July 25, 1960, is a direct banking and payment services company. The Firm is a bank holding company, as well as a financial holding company. The Firm operates through two divisions: Direct Banking and Payment Services. It provides direct banking services and products and payment services through its subsidiaries. It offers its clients credit card loans, private student loans, personal loans, home equity loans and deposit products.

More news for Discover Financial Services (NYSE:DFS) were recently published by: Fool.com, which released: “Better Buy: PayPal Holdings Inc vs. Discover Financial Services” on November 30, 2016. Finance.Yahoo.com‘s article titled: “Discover Financial Services to Present at J.P. Morgan FinTech & Specialty …” and published on November 14, 2016 is yet another important article.

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By Hazel Jackson

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