HST Ventures LLC Lowers Stake in Discover Financial Services by 59.8%
Written by Lucky Wilson | KGTO Writer on May 14, 2023
As of May 13, 2023, HST Ventures LLC has lowered its stake in shares of Discover Financial Services by a whopping 59.8%. The move comes as a surprise to many since Discover Financial Services is known for being a trusted provider of reliable financial services. The institutional investor owned 54,632 shares of the financial services provider’s stock after selling 81,128 shares during the quarter. Discover Financial Services accounts for 3.8% of HST Ventures LLC’s investment portfolio, making the stock its eighth-largest position. However, it is important to note that HST Ventures LLC still holds Discover Financial Services stocks worth $5,345,000.
Discover Financial Services’ last earnings report in April revealed mixed results. The company reported $3.58 earnings per share (EPS) for the quarter, which was lower than the consensus estimate of $3.84 EPS by ($0.26). This miss caused an uproar among investors who were expecting better numbers from the financial services provider.
Despite this setback, Discover Financial Services had a net margin of 24.65%, reflecting its commitment to maintaining high levels of profitability and sound financial management practices. The return on equity stood at an impressive 31.30%, which proves that the company is dedicated to generating value for its shareholders.
Furthermore, during this same period in the prior year, the firm earned $4.22 earnings per share – representing a slight decline from previous years but not enough to start panicking about their business strategy.
In related insider trading news: EVP Robert Andrew Eichfeld sold 13,477 shares of Discover Financial Services’ stock on Friday, March 3rd., bringing his total share holdings down slightly following profits made by selling them at an average price point around $114 dollars per share – netting Eichfeld almost $1.5 million dollars in total proceeds! His remaining shares continue to be valued at roughly $3.6 million dollars.
However, investors shouldn’t be too worried as Discover Financial Services announced plans to initiate a share buyback plan on Wednesday, April 19th. The board of directors approved the repurchase of $2.70 billion in shares, allowing the financial services provider to buy up to 9.8% of its shares through open-market purchases.
This repurchase authorization is undoubtedly good news for shareholders as shares repurchase plans are usually regarded as a positive sign. It means that company management believes its stock is undervalued and may subsequently return additional value to their investors – giving them more trust in the future profitability opportunities within Discover Financial Services itself.
As analysts estimate, Discover Financial Services will post 13.43 EPS for the current year – leaving many hopefuls looking forward to stronger returns over the coming months!
Institutional Investors Show Interest in Discover Financial Services: Insights and Analysis
Discover Financial Services: insights into Institutional Investors
On May 13, 2023, Discover Financial Services (DFS) was traded down at $94.88 on the New York Stock Exchange after recording 602,627 shares transactions for the day. The trading volume is however lower than the average trading volume of 2,295,012 shares. DFS has a market capitalization of $24.09 billion and has maintained a 1-year low of $87.64 and a high of $119.91.
Large institutional investors have added or reduced their stakes in DFS in recent quarters. CI Investments Inc., an investment management firm, increased its stake in DFS by 982.4% in the third quarter to own now 368 shares worth $33,000 after buying an additional 334 shares last quarter. Cullen Frost Bankers Inc., another financial institution, also grew its holdings by 155.1% during Q3 to now own 301 shares worth $27,000 after acquiring more stocks last quarter.
More so, there is new ownership from other investors like Edmond DE Rothschild Holding S.A which purchased a new stake worth about $29,000 during Q4 while Armstrong Advisory Group Inc. bought a new position reportedly valued at approximately $38,000 during the same period.
Furthermore, according to Tsfg LLC’s latest report on its holdings as of Q4 of that same year; among the companies it analyzed holdings for – it ranked Discover Financial Services as number one with an alleged growth rate of its stake by almost twice due to some additional acquisitions made during that period over other named companies except for one big Tech company.
Finally,
DFS announced a new quarterly dividend payout of $0.70 per share which will be issued on Thursday June 8th to shareholders who are officially verified on Thursday May 25th representing an annualized dividend yield rate of almost-three percent (2.95%) and an increase from its previous rate of $0.60. With DFS currently sporting a price-to-earnings ratios of around 6.45, we can infer that the company returns substantial value to shareholders – total payout ratio was analysed as 16.16%.
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Institutional Investors Show Interest in Discover Financial Services: Insights and Analysis
n Discover Financial Services: insights into Institutional Investors n On May 13, 2023, Discover Financial Services (DFS) was traded down at $94.88 on the New York Stock Exchange after recording 602,627 shares transactions for the day. The trading volume is however lower than the average trading volume of 2,295,012 shares. DFS has a market capitalization of $24.09 billion and has maintained a 1-year low of $87.64 and a high of $119.91. n Large institutional investors have added or reduced their stakes in DFS in recent quarters. CI Investments Inc., an investment management firm, increased its stake in DFS by 982.4% in the third quarter to own now 368 shares worth $33,000 after buying an additional 334 shares last quarter. Cullen Frost Bankers Inc., another financial institution, also grew its holdings by 155.1% during Q3 to now own 301 shares worth $27,000 after acquiring more stocks last quarter. n More so, there is new ownership from other investors like Edmond DE Rothschild Holding S.A which purchased a new stake worth about $29,000 during Q4 while Armstrong Advisory Group Inc. bought a new position reportedly valued at approximately $38,000 during the same period. n Furthermore, according to Tsfg LLCu2019s latest report on its holdings as of Q4 of that same year; among the companies it analyzed holdings for u2013 it ranked Discover Financial Services as number one with an alleged growth rate of its stake by almost twice due to some additional acquisitions made during that period over other named companies except for one big Tech company. n Finally, n DFS announced a new quarterly dividend payout of $0.70 per share which will be issued on Thursday June 8th to shareholders who are officially verified on Thursday May 25th representing an annualized dividend yield rate of almost-three percent (2.95%) and an increase from its previous rate of $0.60. With DFS currently sporting a price-to-earnings ratios of around 6.45, we can infer that the company returns substantial value to shareholders u2013 total payout ratio was analysed as 16.16%. nn
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