Prudential Financial Inc. cut its stake in shares of Alliance Data Systems Co. (NYSE:ADS) by 3.3% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 43,224 shares of the business services provider’s stock after selling 1,470 shares during the quarter. Prudential Financial Inc. owned approximately 0.08% of Alliance Data Systems worth $6,057,000 at the end of the most recent reporting period.
Several other large investors also recently made changes to their positions in the stock. FMR LLC grew its stake in shares of Alliance Data Systems by 2.8% during the 1st quarter. FMR LLC now owns 3,374,365 shares of the business services provider’s stock valued at $590,446,000 after acquiring an additional 92,101 shares during the period. Parnassus Investments CA grew its stake in shares of Alliance Data Systems by 11.8% during the 2nd quarter. Parnassus Investments CA now owns 1,409,429 shares of the business services provider’s stock valued at $197,503,000 after acquiring an additional 149,311 shares during the period. Caisse DE Depot ET Placement DU Quebec lifted its holdings in Alliance Data Systems by 47.7% in the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 834,282 shares of the business services provider’s stock worth $145,983,000 after purchasing an additional 269,600 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Alliance Data Systems by 9.8% in the 4th quarter. Geode Capital Management LLC now owns 671,141 shares of the business services provider’s stock worth $100,563,000 after purchasing an additional 59,750 shares in the last quarter. Finally, Wedge Capital Management L L P NC lifted its holdings in Alliance Data Systems by 4.0% in the 2nd quarter. Wedge Capital Management L L P NC now owns 418,663 shares of the business services provider’s stock worth $58,667,000 after purchasing an additional 16,134 shares in the last quarter. Institutional investors own 89.65% of the company’s stock.
A number of research analysts recently commented on the company. Buckingham Research reissued a “neutral” rating and issued a $169.00 price target on shares of Alliance Data Systems in a report on Monday, July 22nd. SunTrust Banks lowered their price target on Alliance Data Systems to $160.00 and set a “buy” rating on the stock in a report on Tuesday, August 20th. UBS Group raised Alliance Data Systems from a “neutral” rating to a “buy” rating and lowered their price target for the stock from $160.00 to $155.00 in a report on Tuesday, September 3rd. Deutsche Bank raised Alliance Data Systems from a “hold” rating to a “buy” rating in a report on Friday, August 16th. Finally, William Blair reissued a “buy” rating on shares of Alliance Data Systems in a report on Monday, July 15th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and eight have assigned a buy rating to the company. The company has a consensus rating of “Hold” and an average target price of $188.50.
In other 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 sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 2.80% of the stock is owned by corporate insiders.
NYSE ADS traded down $1.25 during trading hours on Thursday, reaching $134.12. The company’s stock had a trading volume of 33,161 shares, compared to its average volume of 818,884. The firm’s 50-day moving average price is $140.98 and its 200-day moving average price is $152.17. The company has a quick ratio of 2.64, a current ratio of 2.67 and a debt-to-equity ratio of 7.16. Alliance Data Systems Co. has a 1 year low of $118.40 and a 1 year high of $250.27. The company has a market capitalization of $6.59 billion, a price-to-earnings ratio of 6.23, a PEG ratio of 0.47 and a beta of 1.70.
Alliance Data Systems (NYSE:ADS) last issued its quarterly earnings data on Thursday, July 18th. The business services provider reported $3.66 earnings per share (EPS) 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 analysts’ expectations of $1.36 billion. Alliance Data Systems had a return on equity of 46.72% and a net margin of 13.01%. The firm’s revenue was down 3.5% on a year-over-year basis. During the same period last year, the company earned $5.01 earnings per share. Equities research analysts anticipate that Alliance Data Systems Co. will post 18.95 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 26th. Stockholders of record on Wednesday, September 4th will be issued a dividend of $0.63 per share. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $2.52 annualized dividend and a dividend yield of 1.88%. Alliance Data Systems’s dividend payout ratio (DPR) is 11.69%.
Alliance Data Systems announced that its Board of Directors has initiated a stock buyback program on Tuesday, July 9th that permits the company to buyback $1.10 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 14.2% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.
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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