5 Stocks You Should Sell According to Motley Fool

Page 1 of 5

In this article, we discuss 5 stocks you should sell according to Motley Fool. If you want to see some more stocks that were sold by the hedge fund, check out 10 Stocks You Should Sell According to Motley Fool

5. Discover Financial Services (NYSE:DFS)

Number of Hedge Fund Holders: 33

Percentage Decrease in Stake in Q4: 100%

Discover Financial Services (NYSE:DFS) was incorporated in 1960 and is based in Riverwoods, Illinois. The company provides digital banking products and payment services in the United States. In the December quarter, Motley Fool disposed of its Discover Financial Services (NYSE:DFS) position entirely, which consisted of 7,133 shares worth $876,000. 

In 2021, Discover Financial Services (NYSE:DFS)’s full-year revenue came in at $11.8 billion, a year-over-year growth of 99.34% from the 2020 revenue of $5.95 billion. The net income in 2021 stood at $5.4 billion, up from $1.14 billion in the prior year. 

Wells Fargo analyst Donald Fandetti on April 6 lowered the firm’s price target on Discover Financial Services (NYSE:DFS) to $127 from $135 and kept an Equal Weight rating on the shares. His core Q1 EPS estimate declined by $0.16 to $3.66, assuming higher operating expenses, a more conservative provision expense, and slightly lower than anticipated card loan growth.

According to Insider Monkey’s records, 33 hedge funds were bullish on Discover Financial Services (NYSE:DFS) at the end of December 2021, compared to 37 funds in the preceding quarter. Hedge funds also slashed their collective stakes in the company from $516 million in Q3 to $488 million in Q4. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the leading shareholder of Discover Financial Services (NYSE:DFS), with 970,847 shares worth over $112 million. 

Page 1 of 5