Ultime notizie per Discover Finl (NYSE:DFS) Azioni

Discover Finl

Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts and personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.

Discover Financial Services

Dimensional ETF Trust Dimensional Global Sustainability Fixed Income ETF

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U.S. stock futures point to a flattish start on Wednesday after the <a href="https://www.benzinga.com/markets/equities/24/10/41341168/chipmaker-stocks-sink-on-asml-earnings-leak-oil-eyes-worst-1-day-drop-this-year-small-caps-rally">S&amp;P 500 Index and the Dow Jones Industrial Average retreated from record highs</a> in the previous session. A rebound by tech stocks could lend support to the market but the absence of any major economic catalysts could render the mood uncertain, potentially leading to a range-bound move. Earnings news, and preannouncements, if any, may also guide the market. Crude oil continues to be weak amid the fluid geopolitical situation, exerting further downward pressure on energy stocks.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.09%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.02%</td>
</tr>
<tr>
<td>Dow</td>
<td>-0.05%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.49%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Wednesday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) edged up 0.07% to $580.16 and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) moved up 0.10% to $491.36, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
Wall Street pulled back sharply from their record highs on Tuesday as Dutch chip-equipment maker ASML Holdings N.V.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) weak revenue forecast weighed down on the artificial intelligence hardware space and oil&#8217;s plunge hurt energy stocks. The major indices opened on a mixed note after a regional manufacturing survey showed an unexpected contraction. 
The S&amp;P 500 and the Nasdaq Composite indices, which started higher, gave back their gains and fell sharply after ASML&#8217;s early earnings release. They languished below the unchanged line for the rest of the session before ending sharply lower, while the Dow was in the red throughout the session.
Healthcare stocks also pulled back strongly, while real-estate stocks ended firmer during the session.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td> Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-1.01%</td>
<td>18,315.59</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>-0.76%</td>
<td>5,815.26</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-0.75%</td>
<td>42,740.42</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.05%</td>
<td>2,249.82</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
Given the bull market has progressed beyond the second year, more gains could follow, according to Carson Group&#8217;s Chief Market Strategist Ryan Detrick. &#8220;Going back 50 years, if a bull market makes it past it&#8217;s 2nd birthday (like this one) that is a great sign many more years could be left in the tank,&#8221; he said. 
&#8220;Five bull markets made it this far and the shortest was at least 5 years old when it ended,&#8221; he added.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Going back 50 years, if a bull market makes it past it&#39;s 2nd birthday (like this one) that is a great sign many more years could be left in the tank. Five bull markets made it this far and the shortest was at least 5 years old when it ended. &#x1f4aa; <a href="https://t.co/pEcNTRyGRl">pic.twitter.com/pEcNTRyGRl</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1846381774533722340?ref_src=twsrc%5Etfw">October 16, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<figcaption class="wp-element-caption">See also: <a href="https://www.benzinga.com/money/how-to-trade-futures-on-thinkorswim">How To Trade Futures</a></figcaption></figure>
Upcoming Economic Data:
<ul>
<li>The Labor Department is due to release its import and export prices report for September at 8:30 a.m. EDT. Economists, on average, expect 0.4% and 0.3% declines in export and import prices, respectively, following 0.7% and 0.3% declines in August.</li>
</ul>
Stocks In Focus:
<ul>
<li> J.B. Hunt Transport Services, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>) climbed over 7% <a href="https://www.benzinga.com/premarket">in premarket trading</a> following the release of the company&#8217;s quarterly results. </li>
<li>NovoCure Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVCR#NASDAQ">NVCR</a>) jumped nearly 30% after the FDA approved the company&#8217;s lung cancer treatment.</li>
<li>Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>) and Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) are among the noteworthy <a href="https://www.benzinga.com/calendars/earnings">companies reporting ahead of the market opening.</a></li>
<li>Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) rose over 1.5% on a positive analysts&#8217; action.</li>
<li>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) declined over 2% after a report said Qualcomm, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) has been asked to wait until the U.S. election regarding its intention to invest in the troubled chipmaker.</li>
<li>Those reporting after the close include Alcoa Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>), CSX Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSX#NASDAQ">CSX</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>), Kinder Morgan, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>) and Steel Dynamics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>).</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures retreated, although the loss was much more modest than Tuesday&#8217;s, while gold futures rose modestly. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose past the $67.5 level, while the 10-year U.S. Treasury note slipped 2.6 points to 4.012%.
Most Asian markets declined, led by the Japanese market, although the Chinese and Indonesian markets notched up small gains. The tech sell-off seen in Europe and the U.S. dampened sentiment in the domestic markets. 
European stocks were on the back foot in early trading but the U.K. market was seen advancing.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41351475/after-asml-rocks-ai-hardware-names-gene-munster-explains-why-its-overreaction-ai-tr">After ASML Rocks AI Hardware Names, Gene Munster Explains Why It&#8217;s &#8216;Overreaction:&#8217; &#8216;AI Trade Is On Track&#8217;</a></li>
</ul>
Photo via Shutterstock

Earnings

Equities

News

Futures

Previews

Economics

Federal Reserve

Pre-Market Outlook

Markets

Movers

Trading Ideas

$BTC

ASML

CSCO

INTC

JBHT

NVCR

QCOM

STLD

US Stocks Could Open Narrowly Mixed After Tuesday's Chip Sell-Off, Bitcoin Heads To $68K, Oil Slips

Discover Finl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) short percent of float has risen 22.64% since its last report. The company recently reported that it has 2.85 million shares sold short, which is 1.3% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.1 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Discover Finl Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729006213_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Discover Finl has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Discover Finl's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Discover Finl's peer group average for short interest as a percentage of float is 7.00%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(DFS) - Analyzing Discover Finl's Short Interest

Discover Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) will release its quarterly earnings report on Wednesday, 2024-10-16. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Discover Finl to report an earnings per share (EPS) of $3.36.
The announcement from Discover Finl is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
<h3>Earnings Track Record</h3>
Last quarter the company beat EPS by $2.99, which was followed by a 1.05% increase in the share price the next day.
Here's a look at Discover Finl's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>3.07</td>
<td>2.95</td>
<td>2.51</td>
<td>3.15</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>6.06</td>
<td>1.10</td>
<td>1.54</td>
<td>2.59</td>
</tr>
<tr>
<td>Price Change %</td>
<td>1.0%</td>
<td>4.0%</td>
<td>-11.0%</td>
<td>-8.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1729000970_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Discover Finl were trading at $147.31 as of October 14. Over the last 52-week period, shares are up 61.13%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<h3>Analyst Observations about Discover Finl</h3>
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Discover Finl.
The consensus rating for Discover Finl is Neutral, derived from 5 analyst ratings. An average one-year price target of $139.0 implies a potential 5.64% downside.
<h3>Analyzing Ratings Among Peers</h3>
The following analysis focuses on the analyst ratings and average 1-year price targets of Credit Acceptance and Enova International, three prominent industry players, providing insights into their relative performance expectations and market positioning.
<ul>
<li>For Credit Acceptance, analysts project an Sell trajectory, with an average 1-year price target of $400.0, indicating a potential 171.54% upside.</li>
<li>The consensus outlook from analysts is an Outperform trajectory for Enova International, with an average 1-year price target of $90.5, indicating a potential 38.56% downside.</li>
</ul>
<h3>Peers Comparative Analysis Summary</h3>
The peer analysis summary provides a snapshot of key metrics for Credit Acceptance and Enova International, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>Kaspi.kz</td>
<td>Outperform</td>
<td>37.20%</td>
<td>$513.15B</td>
<td>18.86%</td>
</tr>
<tr>
<td>Credit Acceptance</td>
<td>Sell</td>
<td>12.42%</td>
<td>$330.70M</td>
<td>-2.94%</td>
</tr>
<tr>
<td>Enova International</td>
<td>Outperform</td>
<td>25.83%</td>
<td>$299.24M</td>
<td>4.69%</td>
</tr>
</tbody>
</table>

Key Takeaway:
Discover Finl is positioned at the top for Revenue Growth among its peers. It ranks in the middle for Gross Profit and Return on Equity.
<h3>Get to Know Discover Finl Better</h3>
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts and personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.
<h3>Discover Finl's Financial Performance</h3>
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Discover Finl's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 17.02%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Discover Finl's net margin excels beyond industry benchmarks, reaching 33.52%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Discover Finl's ROE excels beyond industry benchmarks, reaching 10.61%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Discover Finl's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.0% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Discover Finl's debt-to-equity ratio is below the industry average. With a ratio of 1.28, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<a href="https://www.benzinga.com/quote/DFS/earnings">To track all earnings releases for Discover Finl visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

A Peek at Discover Finl's Future Earnings

Throughout the last three months, 5 analysts have evaluated Discover Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>), offering a diverse set of opinions from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $139.0, a high estimate of $156.00, and a low estimate of $119.00. Observing a 4.98% increase, the current average has risen from the previous average price target of $132.40. 
<img src="https://www.benzinga.com/files/images/story/2024/1728316862_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
The standing of Discover Finl among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>John Pancari</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$156.00</td>
<td>$140.00</td>
</tr>
<tr>
<td>Mark Devries</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$137.00</td>
<td>$135.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$135.00</td>
<td>$132.00</td>
</tr>
<tr>
<td>Jon Arfstrom</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$148.00</td>
<td>$140.00</td>
</tr>
<tr>
<td>James Fotheringham</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Market Perform</td>
<td>$119.00</td>
<td>$115.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Discover Finl. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Discover Finl compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
For valuable insights into Discover Finl's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/DFS/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Discover Finl analyst ratings.</a>
<h2>Get to Know Discover Finl Better</h2>
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts and personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.
<h3>Unraveling the Financial Story of Discover Finl</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3 months period, Discover Finl showcased positive performance, achieving a revenue growth rate of 17.02% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: Discover Finl's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 33.52%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 10.61%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Discover Finl's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.0% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.28.
<h2>Analyst Ratings: Simplified</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

Cracking The Code: Understanding Analyst Reviews For Discover Finl

Evercore ISI Group analyst John Pancari maintains Discover Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) with a In-Line and raises the price target from $140 to $156.

Price Target

Evercore ISI Group Maintains In-Line on Discover Finl, Raises Price Target to $156

WIIM

CRBG

GSIW

LPLA

SOFI

TIGR

Shares of companies within the broader financial sector are trading higher amid overall market strength following strong September Unemployment Rate and Nonfarm Payrolls data. Also, the dockworkers struck a deal to suspend their strike after they reached a tentative agreement, easing concerns about its potential ramifications.

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>DFS</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>10/11/24</td>
<td>$130.00</td>
<td>$202.0K</td>
<td>48</td>
<td>3.2K</td>
</tr>
<tr>
<td>FUTU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/11/24</td>
<td>$120.00</td>
<td>$51.0K</td>
<td>366</td>
<td>1.9K</td>
</tr>
<tr>
<td>BAC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>12/20/24</td>
<td>$40.00</td>
<td>$35.8K</td>
<td>4.3K</td>
<td>569</td>
</tr>
<tr>
<td>GS</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$400.00</td>
<td>$38.5K</td>
<td>1.6K</td>
<td>483</td>
</tr>
<tr>
<td>BEN</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>04/17/25</td>
<td>$17.50</td>
<td>$29.9K</td>
<td>604</td>
<td>342</td>
</tr>
<tr>
<td>COIN</td>
<td>PUT</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>10/11/24</td>
<td>$157.50</td>
<td>$46.9K</td>
<td>203</td>
<td>266</td>
</tr>
<tr>
<td>C</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>07/17/26</td>
<td>$75.00</td>
<td>$27.9K</td>
<td>5.4K</td>
<td>154</td>
</tr>
<tr>
<td>PYPL</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$75.00</td>
<td>$49.0K</td>
<td>10.0K</td>
<td>136</td>
</tr>
<tr>
<td>PGR</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$230.00</td>
<td>$34.2K</td>
<td>249</td>
<td>112</td>
</tr>
<tr>
<td>SQ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/04/24</td>
<td>$67.00</td>
<td>$29.1K</td>
<td>691</td>
<td>81</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding DFS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>), we observe a put option trade with neutral sentiment. It expires in 9 day(s) on October 11, 2024. Parties traded 1010 contract(s) at a $130.00 strike. The total cost received by the writing party (or parties) was $202.0K, with a price of $200.0 per contract. There were 48 open contracts at this strike prior to today, and today 3261 contract(s) were bought and sold. 
• Regarding FUTU (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FUTU#NASDAQ">FUTU</a>), we observe a call option sweep with bearish sentiment. It expires in 9 day(s) on October 11, 2024. Parties traded 102 contract(s) at a $120.00 strike. This particular call needed to be split into 16 different trades to become filled. The total cost received by the writing party (or parties) was $51.0K, with a price of $505.0 per contract. There were 366 open contracts at this strike prior to today, and today 1973 contract(s) were bought and sold. 
• For BAC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), we notice a put option sweep that happens to be bearish, expiring in 79 day(s) on December 20, 2024. This event was a transfer of 150 contract(s) at a $40.00 strike. This particular put needed to be split into 11 different trades to become filled. The total cost received by the writing party (or parties) was $35.8K, with a price of $239.0 per contract. There were 4310 open contracts at this strike prior to today, and today 569 contract(s) were bought and sold. 
• Regarding GS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), we observe a call option sweep with bullish sentiment. It expires in 79 day(s) on December 20, 2024. Parties traded 4 contract(s) at a $400.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $38.5K, with a price of $9652.0 per contract. There were 1688 open contracts at this strike prior to today, and today 483 contract(s) were bought and sold. 
• For BEN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEN#NYSE">BEN</a>), we notice a call option sweep that happens to be bearish, expiring in 197 day(s) on April 17, 2025. This event was a transfer of 90 contract(s) at a $17.50 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $29.9K, with a price of $331.0 per contract. There were 604 open contracts at this strike prior to today, and today 342 contract(s) were bought and sold. 
• Regarding COIN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), we observe a put option sweep with neutral sentiment. It expires in 9 day(s) on October 11, 2024. Parties traded 127 contract(s) at a $157.50 strike. This particular put needed to be split into 8 different trades to become filled. The total cost received by the writing party (or parties) was $46.9K, with a price of $369.0 per contract. There were 203 open contracts at this strike prior to today, and today 266 contract(s) were bought and sold. 
• Regarding C (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), we observe a call option trade with bullish sentiment. It expires in 653 day(s) on July 17, 2026. Parties traded 65 contract(s) at a $75.00 strike. The total cost received by the writing party (or parties) was $27.9K, with a price of $430.0 per contract. There were 5400 open contracts at this strike prior to today, and today 154 contract(s) were bought and sold. 
• For PYPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>), we notice a put option sweep that happens to be bullish, expiring in 107 day(s) on January 17, 2025. This event was a transfer of 100 contract(s) at a $75.00 strike. This particular put needed to be split into 10 different trades to become filled. The total cost received by the writing party (or parties) was $49.0K, with a price of $490.0 per contract. There were 10058 open contracts at this strike prior to today, and today 136 contract(s) were bought and sold. 
• For PGR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>), we notice a put option trade that happens to be bullish, expiring in 471 day(s) on January 16, 2026. This event was a transfer of 20 contract(s) at a $230.00 strike. The total cost received by the writing party (or parties) was $34.2K, with a price of $1710.0 per contract. There were 249 open contracts at this strike prior to today, and today 112 contract(s) were bought and sold. 
• Regarding SQ (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), we observe a put option trade with bearish sentiment. It expires in 2 day(s) on October 4, 2024. Parties traded 103 contract(s) at a $67.00 strike. The total cost received by the writing party (or parties) was $29.1K, with a price of $283.0 per contract. There were 691 open contracts at this strike prior to today, and today 81 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

COIN

FUTU

PYPL

10 Financials Stocks Whale Activity In Today's Session

Discover Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) has outperformed the market over the past 15 years by 3.3% on an annualized basis producing an average annual return of 15.21%. Currently, Discover Finl has a market capitalization of $34.97 billion. 
Buying $100 In DFS: If an investor had bought $100 of DFS stock 15 years ago, it would be worth $863.83 today based on a price of $139.29 for DFS at the time of writing.
<h3>Discover Finl's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727721026_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much You Would Have Made Owning Discover Finl Stock In The Last 15 Years

Shares of credit card and payment stocks are trading lower. The sector may be under pressure. Some payments stocks may also be down after Global Payments issued soft guidance.

Consumers are turning more frequently to their 401(k) accounts to pay down <a href="https://www.benzinga.com/insights/news/24/09/40960923/heres-how-much-you-would-have-made-owning-mastercard-stock-in-the-last-10-years">their credit cards</a> as they face higher prices for essentials such as food, gas and electricity, according to a financial planner.
Total credit-card debt in the U.S. reached $1.34 trillion as of June, Federal Reserve data <a href="https://www.federalreserve.gov/releases/g19/20240909/">showed</a>. In May, credit card balances for consumers between 43 and 58 years old <a href="https://www.benzinga.com/general/education/24/05/39059618/this-generation-has-more-credit-card-debt-than-millennials-and-gen-z-5-tips-on-how-to-crawl-out">averaged $9,123</a>.
&#8220;People are facing rising prices and while the rate of inflation has decreased, there is still inflation,&#8221; said Bobbi Rebell, a certified financial planner and finance expert at CardRates.com.
&#8220;Therefore, prices are still high, even though they're not going up as quickly. Life is expensive! People are struggling because they're paying more for everyday expenses like groceries.&#8221;
Read Also: <a href="https://www.benzinga.com/news/24/07/39827834/why-capital-one-stock-is-climbing">Why Capital One Stock Is Climbing</a>
Turning to 401(k)s to pay those balances has also risen because the government has made it easier to access some money from a 401(k) without penalties, she said.
&#8220;Also, that's where the money is! Because many employers have auto enrollment and employees must opt out, people have more money in their 401(k) account,&#8221; she said.
&#8220;At least with a 401(k) you are paying yourself interest and the rate is usually more affordable than the interest rate of a credit card.&#8221;
Major drawbacks to using a 401(k) to pay down credit cards is that consumers must pay back what they take out before leaving the job that gave them the 401(k). They are also using funds that are meant to be spent in retirement, she said.
&#8220;You are borrowing money from your future.&#8221;
Price Action: Credit card companies fell slightly on Friday.
<ul>
<li>Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) slipped 0.16% to $284.77.</li>
<li>Mastercard Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>) dropped 0.05% to $493.30.</li>
<li>Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) fell 0.99% to $142.49</li>
<li>Capital One Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>) declined 0.52% to $152.25.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39847159/analyst-expects-discover-financial-to-further-narrow-fy24-guidance-this-year-detail">Analyst Expects Discover Financial To Further Narrow FY24 Guidance This Year: Detail</a></li>
</ul>
Photo: Shutterstock

Government

Education

Consumers Turn To 401(k)s To Pay Down Credit Cards: 'Life Is Expensive'

ALLY

ARES

BBVA

UPST

Shares of companies in the broader financial services and banking sectors are trading higher amid overall market strength following the Fed's rate cut, which could drive a rise in spending and lending demand.

Consumers&#8217; wallets should get some relief if the<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40882613/builders-first-source-other-homebuilder-stocks-rise-with-catalysts-such-as-mortgage"> Federal Reserve lowers rates</a> this week, but it won&#8217;t be a huge help, according to Benjamin Ayers, senior economist with Nationwide Insurance (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWFAX#NASDAQ">NWFAX</a>).
&#8220;It should put some downward pressure on auto rates, mortgage rates, loan rates, but on the other side of the coin, it should put upward pressure on CD rates and saving rates that you get out there,&#8221; Ayers told Benzinga.
Lowering the Fed interest rate by only 25 or 50 basis points will not mean much for consumers in the short term, he adds.
&#8220;It&#8217;s nice but if you can&#8217;t afford a mortgage at the current level, that&#8217;s not going to change if it goes down by 25 basis points. It&#8217;s more kind of the start of a process,&#8221; he said.
&#8220;Six months, a year, 18 months from now, you&#8217;re going to see much lower rates, and that&#8217;ll really help to juice things, but in the near term, it&#8217;s going to have a pretty negligible impact for most people,&#8221; Ayers says.
A rate cut of 25 or 50 basis points doesn&#8217;t mean rates that affect consumers&#8217; wallets will drop expectedly, said Matt Schulz, LendingTree, Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TREE#NASDAQ">TREE</a>) chief credit analyst.
Read Also: <a href="https://www.benzinga.com/news/24/09/40763384/federal-reserves-potential-rate-cut-pause-jpmorgans-stock-market-warning-and-more-this-week-in-econo">Federal Reserve&#8217;s Potential Rate Cut Pause, JPMorgan&#8217;s Stock Market Warning, And More: This Week In Economics</a>
&#8220;While lower rates are certainly a good thing for those struggling with debt, the truth is that this one rate cut isn't really going to make much of a difference for most people,&#8221; he said.
&#8220;It doesn't change the fact that the best thing people can do to lower interest rates is to take matters into their own hands.&#8221;
He said the average rate on a new credit card offer should stay at a record high of 24.92% for some time if the Fed lowers rates.
&#8220;While they'll almost certainly fall from record highs in coming months, no one should expect dramatically reduced credit card bills anytime soon,&#8221; he said.
&#8220;Barring the Fed unexpectedly stomping on the gas pedal when it comes to lowering rates, credit card APRs are still going to be high for the foreseeable future.&#8221;
A $5,000 credit card balance would take 27 months and $1,528 in interest to pay off at 24.92% if monthly payments of $250 were made. If the interest rate went down by 0.25% because of a 0.25% Fed rate cut, the interest paid over 27 months would fall by $22, resulting in savings of less than a dollar a month, Schulz noted.
Schulz said auto loan rates will get lower, too, if the Fed reduces rates, but consumers should still shop around for financing from other places besides dealerships because their rates are typically much higher.
Saving rates have already started falling and may keep doing so, but consumers don&#8217;t need to panic, he said.
&#8220;Yields aren't going to fall off a cliff immediately after the Fed cuts rates,&#8221; he said.
Price Action: Mortgage lenders and credit card companies trended upward into Monday&#8217;s late-afternoon trading.
<ul>
<li>Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) rose 1.31% to $39.15</li>
<li>Rocket Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) gained 3.87% to $20.38</li>
<li>Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) went up 1.98% to $133.93</li>
<li>Capital One Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>) went up 1.82% to $141.50</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40879982/with-fed-rate-cuts-imminent-heres-which-crypto-sector-could-benefit-the-most-according-to-">With Fed Rate Cuts Imminent, Here&#8217;s Which Crypto Sector Could Benefit The Most, According To Bernstein</a></li>
</ul>
Image: Shutterstock

Analyst Color

Real Estate

NWFAX

TREE

If Fed Cuts Interest Rates, Credit Card APRs 'Are Still Going To Be High' For Now, Economist Says

CACC

CFBK

FSFG

HBAN

NYCB

VBFC

Shares of bank stocks are trading lower in possible sympathy with Ally, which fell after the company's CFO noted credit challenges among borrowers. The sector earlier reacted to Fed Vice Chair for Supervision Barr previewing Basel and GSIB surcharge re-proposals.

General

Shares of bank stocks are trading lower after Fed Vice Chair for Supervision Barr unveiled Basel and GSIB surcharge re-proposals.

Discover Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) has outperformed the market over the past 15 years by 3.93% on an annualized basis producing an average annual return of 15.5%. Currently, Discover Finl has a market capitalization of $33.02 billion. 
Buying $1000 In DFS: If an investor had bought $1000 of DFS stock 15 years ago, it would be worth $8,750.50 today based on a price of $131.52 for DFS at the time of writing.
<h3>Discover Finl's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725892216_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In Discover Finl 15 Years Ago Would Be Worth This Much Today

Discover Finl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) short percent of float has fallen 25.17% since its last report. The company recently reported that it has 2.35 million shares sold short, which is 1.07% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.35 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Discover Finl Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725543022_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Discover Finl has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Discover Finl's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Discover Finl's peer group average for short interest as a percentage of float is 6.83%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About Discover Finl?

Discover Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) has outperformed the market over the past 15 years by 4.55% on an annualized basis producing an average annual return of 16.72%. Currently, Discover Finl has a market capitalization of $33.33 billion. 
Buying $1000 In DFS: If an investor had bought $1000 of DFS stock 15 years ago, it would be worth $9,653.82 today based on a price of $132.74 for DFS at the time of writing.
<h3>Discover Finl's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1724707817_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In This Stock 15 Years Ago Would Be Worth $9,700 Today

It has been about a month since the last earnings report for Discover (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dfs#NYSE">DFS</a>). Shares have lost about 8.5% in that time frame, underperforming the S&amp;P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Discover due for a breakout? Before we dive into how investors and analysts have reacted as of late, let&#39;s take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Discover Q2 Earnings Beat on High Interest Income
Discover Financial reported strong second-quarter results supported by interest income growth, thanks to a high-interest rate environment, lower provision for credit losses, growing loans, PULSE volumes and margin expansion. The positives were partially offset by higher expenses.
It reported second-quarter 2024 adjusted earnings per share of $6.06, which comfortably beat the Zacks Consensus Estimate of $3.06. Also, the bottom line jumped 71% year over year.
Discover Financial&#39;s revenues, net of interest expenses, climbed 17% year over year to $4.5 billion. The top line also beat the consensus mark by 9.1%.
<h3>Q2 Operational Update</h3>
Interest income of nearly $5 billion jumped 16% year over year and beat our model estimate of $4.9 billion. Interest expense increased 30% year over year to $1.45 billion in the quarter under review but remained below our model estimate of $1.49 billion. Non-interest income jumped 45% year over year to $1 billion and beat the Zacks Consensus Estimate by 41.6%.
Total operating expenses of $1.7 billion escalated 23% year over year due to increased employee compensation and benefits expenses, professional fees, information processing &amp; communications costs and other expenses. The figure came higher than our estimate of $1.5 billion. Moreover, operating efficiency (total operating expenses divided by revenues, net of interest expenses) deteriorated 190 basis points (bps) year over year to 38.1% in the second quarter.
Discover Financial&#39;s net income of $1.5 billion surged 70% year over year.
<h3>Q2 Segmental Performance</h3>
<h3>Digital Banking</h3>
The segment reported a pretax income of $1.8 billion, which rose 63% year over year in the second quarter. The increase was due to lower provision for credit losses, growing revenues, net of interest expenses, partly offset by elevated operating expenses. The metric beat the consensus estimate by 105.1%. Provision for credit losses declined 43% year over year to $739 million.
Total loans rose 8% year over year to $127.6 billion in the quarter under review. Personal loans also grew 13% year over year. Credit card loans advanced 7% year over year, while private student loans declined 1% year over year.
Net interest income of $3.5 billion climbed 11% year over year in the second quarter thanks to increased average receivables and net interest margin. The figure surpassed our estimate of $3.4 billion. The net interest margin improved 11 bps year over year to 11.17%.
<h3>Payment Services</h3>
The segment&#39;s pretax income was $277 million, comparing favorably with the prior-year quarter&#39;s income of $70 million. The significant improvement came from an increase in PULSE transaction processing revenues and a favorable settlement of existing litigation. The metric surpassed the Zacks Consensus Estimate of $74 million.
The Payment Services volume of $99.3 billion advanced 11% year over year in the second quarter. The PULSE dollar volume rose 18% year over year on improved debit transaction volume. Meanwhile, the Diners Club volume fell 5% year over year, attributable to lower volumes in India and AribaPay. The Network Partners&#39; volume decreased 22% year over year in the quarter under review.
<h3>Financial Position (as of Jun 30, 2024)</h3>
Discover Financial exited the second quarter with total assets of $150.9 billion, lower than $151.5 billion at 2023 end. The liquidity portfolio (comprising cash and cash equivalents and other investments, excluding cash-in-process) amounted to $22.4 billion, lower than $23.3 billion at 2023-end.
Borrowings decreased from $21.3 billion at 2023-end to $19.1 billion. Total liabilities of $134.8 billion at the second-quarter end were lower than $136.7 billion at 2023 end. Total equity rose from $14.8 billion at 2023 end to $16.1 billion.
<h3>Capital Deployment Update</h3>
Management has currently paused share repurchases through merger closing. The company declared a quarterly cash dividend of 70 cents per share and expects it to remain at this level.
<h3>Other Updates</h3>
Discover Financial entered into a definitive agreement in February 2024 to merge with Capital One Financial Corporation for $35.3 billion,and the integration planning efforts are on track. Capital One is likely to commit $265 billion in community benefit plan over five years to lending, philanthropy and investment if its acquisition of Discover goes through.
DFS has also agreed to divest its private student loan portfolio to The Carlyle Group Inc. and KKR &amp; Co. Inc. for up to around $10.8 billion.
<h3>2024 Guidance (including private student loan divestment)</h3>
Management expects the loan growth to be down low single this year. The net interest margin is forecasted to be in the range of 11.1-11.4%.
Operating expenses are estimated to rise mid-single digits from $6 billion in 2023, excluding merger and card misclassification-related costs. The average net charge-off rate is estimated to be in the range of 4.9-5.2% for the full year. The estimate stands higher than the 2023 figure of 3.42%.
<h2>How Have Estimates Been Moving Since Then?</h2>
In the past month, investors have witnessed an upward trend in estimates revision.
<h2>VGM Scores</h2>
Currently, Discover has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren&#39;t focused on one strategy, this score is the one you should be interested in.
<h2>Outlook</h2>
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Discover has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
<a href="https://www.zacks.com/stock/news/2323214/why-is-discover-dfs-down-8-5-since-last-earnings-report?cid=CS-BENZ-FT-realtime_blog-2323214">To read this article on Zacks.com click here.</a>

Earnings Beats

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Guidance

Dividends

Management

Why Is Discover Down 8.5% Since Last Earnings Report?

Discover Finl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) short percent of float has fallen 12.3% since its last report. The company recently reported that it has 2.33 million shares sold short, which is 1.07% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.16 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Discover Finl Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1723225511_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Discover Finl has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Discover Finl's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Discover Finl's peer group average for short interest as a percentage of float is 9.87%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Peering Into Discover Finl's Recent Short Interest

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Press Releases

DISCOVER FINANCIAL SERVICES INVESTOR ALERT: Scott+Scott Attorneys at Law LLP Investigate Discover Financial Services' Directors and Officers for Breach of Fiduciary Duties – DFS

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates DRQ, AGR, DFS on Behalf of Shareholders

DISCOVER FINANCIAL SERVICES INVESTOR REMINDER: Scott+Scott Attorneys at Law LLP Investigate Discover Financial Services' Directors and Officers for Breach of Fiduciary Duties – DFS

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates CHUY, SPR, DFS on Behalf of Shareholders

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates ITI, SDIG, DFS on Behalf of Shareholders

STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Investigates the Merger of Discover Financial Services - DFS

Legal

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates ITI, FRZA, DFS on Behalf of Shareholders

Flywire showcases strength in U.S. higher education business at its inaugural client conference

Discover Financial Services Announces Third Quarter 2024 Earnings Release on October 16, 2024, and Conference Call on October 17, 2024

Discover Reaches Goal of 1,000 Active Jobs in the Chatham Area, Fulfilling 3-Year Commitment to Chicago's South Side

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