© Reuters. Discover Financial Services (DFS) reinstates share buyback plan, shares jump 4%
By Daniel Shvartsman
Discover Financial Services (NYSE:) announced in an 8-K that it would reinstate its buyback, sending shares up 4% in early trading on Wednesday.
The credit card issuer had announced its suspension of the repurchase plan in conjunction with its Q2 earnings report in July. They cited “an internal investigation relating to its student loan servicing practices and related compliance matters.”
In Wednesday’s 8-K, Discover announced, “The investigation has been completed, and the Company has determined that it will resume repurchases under its existing share repurchase program authorizing up to $4.2 billion of share repurchases through June 30, 2023.”
That $4.2B authorization compares to a market cap of roughly $29.5B.
Discover has rallied roughly 12% since its report on October 24th. Peers Capital One (NYSE:) and American Express (NYSE:) are down 1.9% and .4%, respectively.
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