Major Move Is Coming For Discover Financial Services After Bearish Options Activity

 Major Move Is Coming For Discover Financial Services After Bearish Options Activity

In today’s session Discover Financial Services (DFS) recorded an unusually high (618) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious DFS decrease. With 618 contracts traded and 1734 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: DFS170120P00065000 closed last at: $2.2 or 15.4% down. About 396,766 shares traded hands. Discover Financial Services (NYSE:DFS) has risen 26.78% since April 14, 2016 and is uptrending. It has outperformed by 22.09% the S&P500.

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. On Wednesday, October 21 the stock rating was maintained by Oppenheimer with “Outperform”. JP Morgan downgraded the shares of DFS in a report on Thursday, January 14 to “Neutral” rating. The firm earned “Outperform” rating on Wednesday, April 20 by Bernstein. The rating was upgraded by Bernstein to “Outperform” on Monday, October 5. Stifel Nicolaus maintained the shares of DFS in a report on Thursday, July 23 with “Buy” rating. The stock of Discover Financial Services (NYSE:DFS) earned “Outperform” rating by Oppenheimer on Tuesday, October 6. Sterne Agee CRT initiated the shares of DFS in a report on Thursday, September 10 with “Buy” rating. The stock of Discover Financial Services (NYSE:DFS) earned “Buy” rating by Jefferies on Thursday, September 1. The firm has “Buy” rating given on Wednesday, December 16 by Argus Research. Stifel Nicolaus maintained it with “Buy” rating and $68 target price in Wednesday, October 21 report.

According to Zacks Investment Research, “Discover Financial Services operates the Discover Card with more than fifty million cardmembers, the Discover Network with millions of merchant and cash access locations, and the Goldfish credit card business in the United Kingdom. Discover Financial Services also operates the pulse ATM/debit network, which serves more than four thousand four hundred financial institutions and includes nearly two lakhs sixty thousand ATMs, as well as POS terminals, nationwide.”

Insitutional Activity: The institutional sentiment increased to 1.03 in 2016 Q2. Its up 0.18, from 0.85 in 2016Q1. The ratio improved, 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.
Moreover, New Amsterdam Ptnrs Ltd Com has 0.07% invested in Discover Financial Services (NYSE:DFS) for 5,520 shares. Moors And Cabot holds 0.04% or 4,373 shares in its portfolio. Shell Asset Mngmt holds 0.21% of its portfolio in Discover Financial Services (NYSE:DFS) for 169,346 shares. Lowe Brockenbrough & Incorporated last reported 1.23% of its portfolio in the stock. Argent Capital Ltd Liability Company reported 6,598 shares or 0.02% of all its holdings. Jpmorgan Chase And has 0.19% invested in the company for 14.58M shares. Panagora Asset Mngmt Inc has 566,514 shares for 0.15% of their US portfolio. Benjamin F Edwards Com last reported 40 shares in the company. Btc Capital Mgmt Incorporated has 0.59% invested in the company for 50,749 shares. Jnba Advsrs last reported 0.01% of its portfolio in the stock. Vigilant Ltd Liability last reported 6,364 shares in the company. Mitsubishi Ufj And holds 1.00 million shares or 0.12% of its portfolio. First Wilshire Secs Mngmt has 22,517 shares for 0.39% of their US portfolio. Neuberger Berman Gp Llc accumulated 40,605 shares or 0% of the stock. Archford Capital Strategies Ltd Co holds 0.01% or 510 shares in its portfolio.

Discover Financial Services is a direct banking and payment services company. The company has a market cap of $25.68 billion. The Firm is a bank holding company, as well as a financial holding company. It has a 11.9 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.

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 important recent Discover Financial Services (NYSE:DFS) news were published by: Reuters.com which released: “BRIEF-Discover Financial Services credit card deliquency and charge-off ra…” on November 15, 2016, also Businesswire.com published article titled: “Discover Financial Services to Present at J.P. Morgan FinTech & Specialty …”, Seekingalpha.com published: “Discover Preferred Shares As A ‘Minimum Threshold’ Investment” on November 15, 2016. More interesting news about Discover Financial Services (NYSE:DFS) was released by: Seekingalpha.com and their article: “Discover Financial Services (DFS) Q3 2016 Results – Earnings Call Transcript” with publication date: October 26, 2016.

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