Top 5 Stock Picks of Mark Kleiman’s Factorial Partners

4. Discover Financial Services (NYSE:DFS)

Factorial Partners’ Stake Value: $3,641,000

Percentage of Factorial Partners’ 13F portfolio: 2.95%

Number of Q2 Hedge Fund Holders: 40

Discover Financial Services (NYSE:DFS) provide digital banking products and services, as well as payment services, in the United States through its subsidiaries. It has two business segments: Digital Banking and Payment Services. Factorial Partners owned 38,500 shares of Discover Financial Services (NYSE:DFS) on June 30, worth $3.6 million, and representing a 2.95% chunk of its 13F portfolio’s weighting.

BMO Capital analyst James Fotheringham reduced his Discover Financial Services’ (NYSE:DFS) price target to $118 from $131 on July 25 and maintained a ‘Market Perform’ rating on the stock. The company reported solid Q2 results with higher revenues, lower costs, and benign credit trends, while raising its 2022 guidance on growth, net interest margins, and net charge-off rates, but all of this was overshadowed by the suspension of share repurchases, the analyst wrote in a research note.

Among the hedge funds tracked by Insider Monkey, 40 were long Discover Financial Services (NYSE:DFS) on June 30, with combined stakes worth $597 million. Ric Dillon’s Diamond Hill Capital is a leading position holder in the company, with 64,850 shares worth $6.1 million.