Zacks Investment Research upgraded shares of Alliance Data Systems (NYSE:ADS) from a hold rating to a buy rating in a research report report published on Tuesday morning. Zacks Investment Research currently has $310.00 price objective on the business services provider’s stock.
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 #2 increases the predictive power of a beat, but combined with the Earnings ESP of -1.27%, makes prediction difficult.”
Several other analysts also recently commented on ADS. Keefe, Bruyette & Woods reiterated a buy rating and set a $300.00 target price on shares of Alliance Data Systems in a research note on Friday, October 6th. BMO Capital Markets reiterated a hold rating and set a $235.00 target price on shares of Alliance Data Systems in a research note on Wednesday, October 18th. SunTrust Banks reiterated a buy rating and set a $310.00 target price on shares of Alliance Data Systems in a research note on Friday, October 20th. Oppenheimer set a $208.00 target price on Alliance Data Systems and gave the company a sell rating in a research note on Thursday, October 19th. Finally, ValuEngine upgraded Alliance Data Systems from a hold rating to a buy rating in a research note on Saturday, October 21st. Four equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and ten have given a buy rating to the company. Alliance Data Systems presently has an average rating of Hold and an average price target of $270.18.
Shares of Alliance Data Systems (ADS) traded down $18.30 on Tuesday, reaching $258.07. The company’s stock had a trading volume of 1,619,100 shares, compared to its average volume of 595,840. 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. The stock has a market cap of $14,310.00, a P/E ratio of 27.37, a price-to-earnings-growth ratio of 0.99 and a beta of 1.79.
Alliance Data Systems (NYSE:ADS) last issued its earnings results on Thursday, October 19th. The business services provider reported $5.35 EPS for the quarter, beating the consensus estimate of $4.80 by $0.55. Alliance Data Systems had a return on equity of 62.95% and a net margin of 7.09%. The business had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.97 billion. During the same period last year, the business posted $4.74 EPS. The company’s revenue was up 1.4% compared to the same quarter last year. equities analysts expect that Alliance Data Systems will post 17.08 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Tuesday, December 19th. Stockholders of record on Tuesday, November 14th were paid a $0.52 dividend. The ex-dividend date was Monday, November 13th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 0.81%. Alliance Data Systems’s dividend payout ratio (DPR) is currently 22.06%.
In other news, CFO Charles L. Horn sold 2,128 shares of the firm’s stock in a transaction on Thursday, November 30th. The stock was sold at an average price of $235.00, for a total value of $500,080.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 2.60% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Koshinski Asset Management Inc. purchased a new position in Alliance Data Systems during the fourth quarter valued at $526,000. Creative Planning lifted its position in Alliance Data Systems by 28.5% during the fourth quarter. Creative Planning now owns 1,823 shares of the business services provider’s stock valued at $462,000 after purchasing an additional 404 shares in the last quarter. National Pension Service lifted its position in Alliance Data Systems by 7.9% during the fourth quarter. National Pension Service now owns 61,677 shares of the business services provider’s stock valued at $15,634,000 after purchasing an additional 4,505 shares in the last quarter. Convergence Investment Partners LLC lifted its position in Alliance Data Systems by 9.0% during the fourth quarter. Convergence Investment Partners LLC now owns 17,480 shares of the business services provider’s stock valued at $4,431,000 after purchasing an additional 1,438 shares in the last quarter. Finally, USS Investment Management Ltd lifted its position in Alliance Data Systems by 24.3% during the fourth quarter. USS Investment Management Ltd now owns 678,796 shares of the business services provider’s stock valued at $172,078,000 after purchasing an additional 132,796 shares in the last quarter. Institutional investors own 94.59% 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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