Alliance Data Systems Co. (NYSE:ADS) has been assigned a consensus recommendation of “Hold” from the seventeen brokerages that are currently covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $197.90.
Several analysts have weighed in on ADS shares. Robert W. Baird set a $173.00 price objective on Alliance Data Systems and gave the stock a “hold” rating in a report on Friday, July 19th. William Blair reiterated a “buy” rating on shares of Alliance Data Systems in a research report on Monday, July 15th. Buckingham Research reiterated a “neutral” rating and issued a $169.00 price objective on shares of Alliance Data Systems in a research report on Monday, July 22nd. Zacks Investment Research lowered Alliance Data Systems from a “hold” rating to a “sell” rating in a research report on Monday, April 29th. Finally, Oppenheimer reiterated a “hold” rating on shares of Alliance Data Systems in a research report on Friday, April 26th.
NYSE:ADS traded up $2.33 on Friday, hitting $152.44. 114,576 shares of the stock were exchanged, compared to its average volume of 979,983. The firm has a market capitalization of $7.67 billion, a PE ratio of 7.08, a price-to-earnings-growth ratio of 0.55 and a beta of 1.63. Alliance Data Systems has a 52 week low of $133.56 and a 52 week high of $250.27. The company has a quick ratio of 2.64, a current ratio of 2.67 and a debt-to-equity ratio of 7.16. The business has a 50-day moving average of $150.76.
Alliance Data Systems (NYSE:ADS) last announced its quarterly earnings data on Thursday, July 18th. The business services provider reported $3.66 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $4.08 by ($0.42). The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.36 billion. Alliance Data Systems had a return on equity of 46.72% and a net margin of 13.01%. The business’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $5.01 earnings per share. Sell-side analysts predict that Alliance Data Systems will post 18.92 EPS for the current year.
Alliance Data Systems declared that its Board of Directors has initiated a stock buyback plan on Tuesday, July 9th that allows the company to repurchase $1.10 billion in shares. This repurchase authorization allows the business services provider to repurchase up to 14.2% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 26th. Investors of record on Wednesday, September 4th will be given a $0.63 dividend. The ex-dividend date is Tuesday, September 3rd. This represents a $2.52 annualized dividend and a dividend yield of 1.65%. Alliance Data Systems’s dividend payout ratio is presently 11.69%.
In other Alliance Data Systems news, CFO Timothy P. King sold 2,600 shares of the company’s stock in a transaction that occurred on Tuesday, July 30th. The stock was sold at an average price of $156.30, for a total transaction of $406,380.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 2.80% of the stock is currently owned by insiders.
A number of large investors have recently added to or reduced their stakes in the business. Veritable L.P. raised its position in shares of Alliance Data Systems by 2.5% in the 2nd quarter. Veritable L.P. now owns 2,725 shares of the business services provider’s stock worth $382,000 after acquiring an additional 67 shares in the last quarter. Cim Investment Mangement Inc. increased its position in Alliance Data Systems by 3.4% during the 2nd quarter. Cim Investment Mangement Inc. now owns 2,123 shares of the business services provider’s stock valued at $297,000 after buying an additional 70 shares in the last quarter. Malaga Cove Capital LLC increased its position in Alliance Data Systems by 3.0% during the 1st quarter. Malaga Cove Capital LLC now owns 2,637 shares of the business services provider’s stock valued at $461,000 after buying an additional 76 shares in the last quarter. LS Investment Advisors LLC increased its position in Alliance Data Systems by 3.6% during the 1st quarter. LS Investment Advisors LLC now owns 2,312 shares of the business services provider’s stock valued at $405,000 after buying an additional 81 shares in the last quarter. Finally, Patriot Financial Group Insurance Agency LLC increased its holdings in shares of Alliance Data Systems by 11.1% in the 2nd quarter. Patriot Financial Group Insurance Agency LLC now owns 1,000 shares of the business services provider’s stock worth $146,000 after purchasing an additional 100 shares in the last quarter. 91.96% of the stock is owned by hedge funds and other institutional investors.
About Alliance Data Systems
Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions worldwide. It operates through three segments: LoyaltyOne, Epsilon, and Card Services. The company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs.
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