Federated Investors Inc. PA lowered its position in Alliance Data Systems Co. (NYSE:ADS) by 93.4% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 874 shares of the business services provider’s stock after selling 12,414 shares during the period. Federated Investors Inc. PA’s holdings in Alliance Data Systems were worth $204,000 as of its most recent filing with the Securities & Exchange Commission.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. BlackRock Inc. boosted its position in Alliance Data Systems by 1.6% in the second quarter. BlackRock Inc. now owns 3,164,367 shares of the business services provider’s stock valued at $737,931,000 after buying an additional 48,926 shares during the last quarter. JPMorgan Chase & Co. boosted its position in Alliance Data Systems by 188.6% in the first quarter. JPMorgan Chase & Co. now owns 969,957 shares of the business services provider’s stock valued at $206,465,000 after buying an additional 633,865 shares during the last quarter. Commonwealth Equity Services LLC boosted its position in Alliance Data Systems by 9.7% in the first quarter. Commonwealth Equity Services LLC now owns 26,200 shares of the business services provider’s stock valued at $5,577,000 after buying an additional 2,320 shares during the last quarter. Quantbot Technologies LP purchased a new stake in Alliance Data Systems in the first quarter valued at approximately $970,000. Finally, Swiss National Bank boosted its position in Alliance Data Systems by 3.1% in the second quarter. Swiss National Bank now owns 164,598 shares of the business services provider’s stock valued at $38,384,000 after buying an additional 5,000 shares during the last quarter. Hedge funds and other institutional investors own 93.34% of the company’s stock.
In other news, EVP Bryan A. Pearson sold 3,424 shares of the stock in a transaction that occurred on Tuesday, August 14th. The stock was sold at an average price of $231.67, for a total transaction of $793,238.08. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Charles L. Horn sold 16,035 shares of the stock in a transaction that occurred on Tuesday, July 24th. The shares were sold at an average price of $232.58, for a total value of $3,729,420.30. Following the transaction, the chief financial officer now owns 28,688 shares in the company, valued at approximately $6,672,255.04. The disclosure for this sale can be found here. Company insiders own 2.60% of the company’s stock.
Several research firms have commented on ADS. Deutsche Bank set a $253.00 price objective on Alliance Data Systems and gave the stock a “buy” rating in a research report on Thursday, September 20th. Bank of America began coverage on Alliance Data Systems in a research report on Monday, September 17th. They issued a “buy” rating and a $290.00 price objective on the stock. Stephens lowered Alliance Data Systems from an “overweight” rating to an “equal” rating and set a $288.00 price objective on the stock. in a research report on Monday, September 17th. They noted that the move was a valuation call. JPMorgan Chase & Co. upgraded Alliance Data Systems from a “neutral” rating to an “overweight” rating and set a $281.00 price objective on the stock in a research report on Tuesday, August 14th. Finally, ValuEngine upgraded Alliance Data Systems from a “strong sell” rating to a “sell” rating in a research report on Friday, August 10th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and thirteen have issued a buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $264.05.
Shares of NYSE:ADS opened at $239.21 on Thursday. Alliance Data Systems Co. has a 1 year low of $192.02 and a 1 year high of $278.33. The company has a market cap of $13.45 billion, a PE ratio of 13.09, a price-to-earnings-growth ratio of 0.92 and a beta of 1.77. The company has a debt-to-equity ratio of 7.25, a quick ratio of 2.12 and a current ratio of 2.14.
Alliance Data Systems (NYSE:ADS) last announced its earnings results on Thursday, July 19th. The business services provider reported $5.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.64 by $0.37. Alliance Data Systems had a return on equity of 59.18% and a net margin of 11.35%. The firm had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.93 billion. During the same quarter last year, the firm posted $3.84 EPS. The business’s revenue was up 8.1% on a year-over-year basis. sell-side analysts expect that Alliance Data Systems Co. will post 21.6 EPS for the current fiscal year.
Alliance Data Systems declared that its Board of Directors has initiated a share repurchase plan on Monday, July 30th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the business services provider to buy up to 4% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 19th. Stockholders of record on Tuesday, August 14th were given a dividend of $0.57 per share. The ex-dividend date was Monday, August 13th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 0.95%. Alliance Data Systems’s dividend payout ratio (DPR) is 12.47%.
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.
Further Reading: Why do companies issue stock splits?
Receive News & Ratings for Alliance Data Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliance Data Systems and related companies with MarketBeat.com's FREE daily email newsletter.