SunTrust Banks set a $135.00 price objective on Alliance Data Systems (NYSE:ADS) in a research note published on Friday morning, TipRanks reports. The brokerage currently has a buy rating on the business services provider's stock.
ADS has been the subject of a number of other reports. Deutsche Bank raised Alliance Data Systems from a hold rating to a buy rating in a research note on Friday, August 16th. Edward Jones lowered Alliance Data Systems from a buy rating to a hold rating in a research note on Friday. UBS Group raised Alliance Data Systems from a neutral rating to a buy rating and decreased their price target for the company from $160.00 to $155.00 in a research note on Tuesday, September 3rd. Goldman Sachs Group reaffirmed a buy rating and set a $310.00 price target on shares of Alliance Data Systems in a research note on Thursday, October 17th. Finally, William Blair reaffirmed a buy rating on shares of Alliance Data Systems in a research note on Monday, July 15th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and eight have assigned a buy rating to the company's stock. The company currently has an average rating of Hold and an average target price of $186.53.
ADS stock traded up $1.99 on Friday, reaching $106.79. The company's stock had a trading volume of 986,774 shares, compared to its average volume of 802,658. The firm has a fifty day moving average of $125.57 and a two-hundred day moving average of $142.16. The company has a debt-to-equity ratio of 6.71, a current ratio of 1.75 and a quick ratio of 2.64. The company has a market capitalization of $5.47 billion, a P/E ratio of 4.95, a price-to-earnings-growth ratio of 0.42 and a beta of 1.70. 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 results on Thursday, October 24th. The business services provider reported $5.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $5.08 by ($0.03). The firm had revenue of $1.44 billion for 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%. The business's revenue for the quarter was up 1.1% compared to the same quarter last year. During the same period in the previous year, the business posted $5.37 earnings per share. As a group, equities analysts expect that Alliance Data Systems will post 18.88 EPS for the current fiscal year.
Alliance Data Systems announced that its Board of Directors has approved a share repurchase plan on Tuesday, July 9th that authorizes the company to buyback $1.10 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 14.2% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board believes its shares are undervalued.
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 17th. Stockholders of record on Thursday, November 14th will be given a dividend of $0.63 per share. The ex-dividend date is Wednesday, November 13th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.36%. Alliance Data Systems's dividend payout ratio (DPR) is presently 11.69%.
In other news, CFO Timothy P. King sold 2,600 shares of the stock in a transaction 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 filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.80% of the stock is currently owned by corporate insiders.
Large investors have recently made changes to their positions in the company. Artemis Investment Management LLP acquired a new stake in shares of Alliance Data Systems during the 2nd quarter valued at $5,871,000. Mesirow Financial Investment Management Equity Management acquired a new stake in shares of Alliance Data Systems during the 2nd quarter valued at $1,408,000. Johnson Financial Group Inc. lifted its holdings in shares of Alliance Data Systems by 940.9% in the second quarter. Johnson Financial Group Inc. now owns 229 shares of the business services provider's stock valued at $32,000 after purchasing an additional 207 shares in the last quarter. GSA Capital Partners LLP purchased a new stake in shares of Alliance Data Systems in the second quarter valued at $523,000. Finally, First Trust Advisors LP lifted its holdings in shares of Alliance Data Systems by 2,650.3% in the second quarter. First Trust Advisors LP now owns 43,207 shares of the business services provider's stock valued at $6,055,000 after purchasing an additional 41,636 shares in the last quarter. 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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