Alliance Data Systems (NYSE:ADS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Alliance Data remains well-positioned for growth from significant opportunities owing to the current trend in consumer-based businesses, shifting their marketing spends to data-driven marketing strategies. It has made several strategic acquisitions to grow inorganically. Solid receivables growth in Card Services along with strength in LoyaltyOne and Epsilon segments should continue to drive top-line growth. For 2017, core EPS is expected at $18.10 on $7.8 billion revenues and for 2018, core EPS is projected at $21.50 on revenues of $8.7 billion. However, increasing expenses and dependence on limited clients for revenues, raise concerns. Shares of Alliance Data have underperformed the industry in a year. It is set to release fourth quarter results on Jan 25. A Zacks Rank #3 increases the predictive power of a beat, but combined with the Earnings ESP of -0.94%, makes prediction difficult.”
ADS has been the topic of a number of other reports. Royal Bank of Canada reissued a “buy” rating and set a $293.00 target price on shares of Alliance Data Systems in a research report on Thursday, January 4th. Keefe, Bruyette & Woods reissued a “buy” rating and set a $300.00 target price on shares of Alliance Data Systems in a research report on Friday, October 6th. Barclays raised shares of Alliance Data Systems from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $265.00 to $310.00 in a research report on Wednesday, January 3rd. BMO Capital Markets reissued a “hold” rating and set a $235.00 target price on shares of Alliance Data Systems in a research report on Wednesday, November 22nd. Finally, Stephens set a $304.00 target price on shares of Alliance Data Systems and gave the stock a “buy” rating in a research report on Tuesday, January 2nd. Four 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’s stock. Alliance Data Systems has a consensus rating of “Hold” and an average price target of $266.76.
Shares of Alliance Data Systems (ADS) traded up $2.75 during mid-day trading on Wednesday, reaching $276.37. 429,874 shares of the company’s stock were exchanged, compared to its average volume of 473,177. The firm has a market capitalization of $15,117.14, a PE ratio of 29.31, a price-to-earnings-growth ratio of 0.98 and a beta of 1.79. The company has a current ratio of 2.11, a quick ratio of 2.09 and a debt-to-equity ratio of 9.53. Alliance Data Systems has a 1 year low of $209.00 and a 1 year high of $278.33.
Alliance Data Systems (NYSE:ADS) last posted its earnings results on Thursday, October 19th. The business services provider reported $5.35 EPS for the quarter, topping analysts’ consensus estimates of $4.80 by $0.55. Alliance Data Systems had a net margin of 7.09% and a return on equity of 62.95%. The business had revenue of $1.91 billion for the quarter, compared to analysts’ expectations of $1.97 billion. During the same period in the previous year, the company posted $4.74 earnings per share. The business’s revenue for the quarter was up 1.4% compared to the same quarter last year. research analysts anticipate that Alliance Data Systems will post 17.08 earnings per share for the current fiscal year.
In related news, CFO Charles L. Horn sold 2,128 shares of Alliance Data Systems stock in a transaction on Thursday, November 30th. The shares were sold at an average price of $235.00, for a total value of $500,080.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.60% of the stock is currently owned by insiders.
Large investors have recently modified their holdings of the stock. Cryder Capital Partners LLP increased its stake in shares of Alliance Data Systems by 6.9% in the third quarter. Cryder Capital Partners LLP now owns 140,071 shares of the business services provider’s stock worth $31,033,000 after buying an additional 9,063 shares during the last quarter. Atlanta Capital Management Co. L L C increased its stake in Alliance Data Systems by 3.7% during the third quarter. Atlanta Capital Management Co. L L C now owns 140,187 shares of the business services provider’s stock valued at $31,059,000 after purchasing an additional 4,980 shares during the last quarter. Court Place Advisors LLC increased its stake in Alliance Data Systems by 6.9% during the third quarter. Court Place Advisors LLC now owns 11,013 shares of the business services provider’s stock valued at $2,440,000 after purchasing an additional 715 shares during the last quarter. Laurion Capital Management LP bought a new stake in Alliance Data Systems during the second quarter valued at $4,007,000. Finally, Macquarie Group Ltd. increased its stake in Alliance Data Systems by 1,310.0% during the second quarter. Macquarie Group Ltd. now owns 1,410 shares of the business services provider’s stock valued at $362,000 after purchasing an additional 1,310 shares during the last quarter. Institutional investors and hedge funds own 94.57% of the company’s stock.
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Alliance Data Systems Company Profile
Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. 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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