Alliance Data Systems Co. (NYSE:ADS) has been assigned a consensus rating of “Hold” from the twenty-two analysts that are covering the company, MarketBeat reports. Three equities research analysts have rated the stock with a sell rating, nine have given a hold rating and ten have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $263.36.
A number of research analysts have weighed in on the company. Oppenheimer set a $206.00 target price on Alliance Data Systems and gave the company a “sell” rating in a report on Thursday, April 12th. ValuEngine lowered Alliance Data Systems from a “sell” rating to a “strong sell” rating in a report on Thursday. JMP Securities reduced their target price on Alliance Data Systems from $310.00 to $270.00 and set a “positive” rating for the company in a report on Thursday, April 12th. Wolfe Research assumed coverage on Alliance Data Systems in a report on Tuesday, July 17th. They set an “outperform” rating for the company. Finally, Stephens reaffirmed a “buy” rating and set a $288.00 target price on shares of Alliance Data Systems in a report on Friday, July 20th.
Alliance Data Systems traded up $2.50, reaching $227.59, during mid-day trading on Tuesday, MarketBeat reports. 369,881 shares of the company traded hands, compared to its average volume of 565,292. The company has a quick ratio of 2.11, a current ratio of 23.57 and a debt-to-equity ratio of 11.38. The firm has a market capitalization of $12.47 billion, a PE ratio of 12.45, a PEG ratio of 0.80 and a beta of 1.72. Alliance Data Systems has a 52-week low of $192.02 and a 52-week high of $278.33.
Alliance Data Systems (NYSE:ADS) last posted its earnings results on Thursday, July 19th. The business services provider reported $5.01 earnings per share for the quarter, beating the Zacks’ consensus estimate of $4.64 by $0.37. The business had revenue of $1.97 billion during the quarter, compared to analyst estimates of $1.93 billion. Alliance Data Systems had a return on equity of 59.18% and a net margin of 11.35%. The company’s quarterly revenue was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.84 EPS. equities research analysts anticipate that Alliance Data Systems will post 21.68 EPS for the current fiscal year.
Alliance Data Systems declared that its Board of Directors has approved a stock buyback program on Monday, July 30th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the business services provider to reacquire up to 4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 19th. Stockholders of record on Tuesday, August 14th will be issued a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a dividend yield of 1.00%. The ex-dividend date of this dividend is Monday, August 13th. Alliance Data Systems’s payout ratio is 12.47%.
In other news, insider Valueact Capital Master Fund, bought 202,600 shares of the company’s stock in a transaction that occurred on Wednesday, May 9th. The stock was bought at an average price of $201.80 per share, for a total transaction of $40,884,680.00. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Charles L. Horn sold 16,035 shares of the business’s stock in a transaction that occurred on Tuesday, July 24th. The stock was sold at an average price of $232.58, for a total value of $3,729,420.30. Following the completion of the sale, the chief financial officer now owns 28,688 shares of the company’s stock, valued at approximately $6,672,255.04. The disclosure for this sale can be found here. Insiders have bought 330,246 shares of company stock valued at $66,585,860 in the last three months. 2.60% of the stock is owned by insiders.
A number of large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. lifted its position in Alliance Data Systems by 1.8% in the 1st quarter. BlackRock Inc. now owns 3,115,441 shares of the business services provider’s stock worth $663,153,000 after buying an additional 55,274 shares during the last quarter. Boston Partners lifted its position in Alliance Data Systems by 92.5% in the 1st quarter. Boston Partners now owns 974,709 shares of the business services provider’s stock worth $207,477,000 after buying an additional 468,310 shares during the last quarter. JPMorgan Chase & Co. lifted its position in Alliance Data Systems by 188.6% in the 1st quarter. JPMorgan Chase & Co. now owns 969,957 shares of the business services provider’s stock worth $206,465,000 after buying an additional 633,865 shares during the last quarter. Bank of Montreal Can lifted its position in Alliance Data Systems by 33.3% in the 2nd quarter. Bank of Montreal Can now owns 768,119 shares of the business services provider’s stock worth $179,126,000 after buying an additional 192,056 shares during the last quarter. Finally, Wedge Capital Management L L P NC lifted its position in Alliance Data Systems by 3.5% in the 1st quarter. Wedge Capital Management L L P NC now owns 403,283 shares of the business services provider’s stock worth $85,843,000 after buying an additional 13,481 shares during the last quarter. Institutional investors own 94.06% of the company’s stock.
Alliance Data Systems Company Profile
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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