Wolfe Research set a $125.00 price objective on Alliance Data Systems (NYSE:ADS) in a research report released on Friday, TipRanks reports. The brokerage currently has a hold rating on the business services provider’s stock.
Several other brokerages also recently commented on ADS. Wells Fargo & Co downgraded shares of Alliance Data Systems from an outperform rating to a market perform rating and set a $115.00 price objective for the company. in a research note on Friday. UBS Group raised shares of Alliance Data Systems from a neutral rating to a buy rating and dropped their price objective for the company from $160.00 to $155.00 in a research note on Tuesday, September 3rd. Warburg Research reissued a neutral rating and issued a $280.00 price objective on shares of Alliance Data Systems in a research note on Monday, October 21st. Robert W. Baird set a $173.00 price objective on shares of Alliance Data Systems and gave the company a hold rating in a research note on Friday, July 19th. Finally, Deutsche Bank raised shares of Alliance Data Systems from a hold rating to a buy rating in a research note on Friday, August 16th. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $186.53.
NYSE:ADS traded up $1.99 on Friday, hitting $106.79. The company had a trading volume of 986,774 shares, compared to its average volume of 802,658. The stock has a market capitalization of $5.47 billion, a price-to-earnings ratio of 4.95, a PEG ratio of 0.42 and a beta of 1.70. The company has a current ratio of 1.75, a quick ratio of 2.64 and a debt-to-equity ratio of 6.71. The firm has a 50 day moving average of $125.57 and a two-hundred day moving average of $142.16. Alliance Data Systems has a 52 week low of $101.51 and a 52 week high of $214.95.
Alliance Data Systems (NYSE:ADS) last issued its quarterly earnings data on Thursday, October 24th. The business services provider reported $5.05 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $5.08 by ($0.03). The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.45 billion. Alliance Data Systems had a net margin of 7.54% and a return on equity of 47.40%. Alliance Data Systems’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the previous year, the company earned $5.37 EPS. As a group, equities analysts forecast that Alliance Data Systems will post 18.88 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 purchase up to 14.2% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 17th. Shareholders of record on Thursday, November 14th will be given a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 2.36%. The ex-dividend date is Wednesday, November 13th. Alliance Data Systems’s dividend payout ratio (DPR) is currently 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 shares were sold at an average price of $156.30, for a total value of $406,380.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.80% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in ADS. Teacher Retirement System of Texas lifted its stake in shares of Alliance Data Systems by 140.3% in the third quarter. Teacher Retirement System of Texas now owns 145,244 shares of the business services provider’s stock valued at $18,610,000 after buying an additional 84,789 shares in the last quarter. Sepio Capital LLC bought a new position in shares of Alliance Data Systems in the third quarter valued at $264,000. FNY Investment Advisers LLC bought a new position in shares of Alliance Data Systems in the third quarter valued at $3,970,000. Railway Pension Investments Ltd bought a new position in shares of Alliance Data Systems in the third quarter valued at $7,409,000. Finally, State of New Jersey Common Pension Fund D bought a new position in shares of Alliance Data Systems in the third quarter valued at $4,574,000. Hedge funds and other institutional investors own 89.62% of the company’s stock.
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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