Discover Stock Is Trading Higher Thursday: What's Going On?

Discover Financial Services DFS shares are trading higher Thursday after the company announced that it will explore the sale of the Discover Student Loans portfolio.

What To Know: Discover's board authorized the company to explore selling its student loans portfolio, as well as the transfer of servicing of the loans to a third-party provider as part of a strategic alternatives initiative related to the student loans business. 

Discover said it will stop accepting new applications for student loans on Feb. 1, 2024. 

"Discover's Board regularly reviews the strategic fit of all of our businesses, with a focus on providing exceptional customer service and allocating resources to optimize returns," said John Owen, interim CEO and president of Discover.

"During a recent review, the Board determined that exploring the sale and transfer of servicing of Discover's student loans is aligned with those priorities, better enabling Discover to focus on our core banking products, capitalize on our growth opportunities and deliver long-term shareholder value."

The company noted that there is no deadline or definitive timetable set for completion of the process.

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DFS Price Action: Discover shares were up 4.08% at $92.52 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Discover.