Deutsche Bank set a $253.00 price target on Alliance Data Systems (NYSE:ADS) in a research report sent to investors on Thursday, September 20th. The firm currently has a buy rating on the business services provider’s stock.
ADS has been the topic of a number of other research reports. Wolfe Research assumed coverage on Alliance Data Systems in a report on Tuesday, July 17th. They issued an outperform rating on the stock. Zacks Investment Research upgraded Alliance Data Systems from a hold rating to a buy rating and set a $261.00 target price on the stock in a report on Wednesday, July 25th. JPMorgan Chase & Co. reiterated a hold rating on shares of Alliance Data Systems in a report on Wednesday, July 18th. ValuEngine cut Alliance Data Systems from a sell rating to a strong sell rating in a report on Friday, June 1st. Finally, Bank of America initiated coverage on Alliance Data Systems in a report on Monday, September 17th. They set a buy rating and a $290.00 target price on the stock. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and twelve have issued a buy rating to the stock. Alliance Data Systems presently has an average rating of Hold and a consensus price target of $262.06.
NYSE ADS traded up $1.83 on Thursday, hitting $213.52. 616,791 shares of the company’s stock were exchanged, compared to its average volume of 581,736. The stock has a market capitalization of $12.98 billion, a price-to-earnings ratio of 11.68, a PEG ratio of 0.89 and a beta of 1.76. The company has a current ratio of 2.14, a quick ratio of 2.12 and a debt-to-equity ratio of 7.25. Alliance Data Systems has a fifty-two week low of $192.02 and a fifty-two week high of $278.33.
The company also recently announced a quarterly dividend, which was paid on Wednesday, September 19th. Investors of record on Tuesday, August 14th were given a $0.57 dividend. This represents a $2.28 annualized dividend and a dividend yield of 1.07%. The ex-dividend date of this dividend was Monday, August 13th. Alliance Data Systems’s dividend payout ratio (DPR) is currently 12.47%.
Alliance Data Systems declared that its Board of Directors has authorized a stock repurchase program on Monday, July 30th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the business services provider to purchase up to 4% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.
In related news, CFO Charles L. Horn sold 16,035 shares of the stock in a transaction on Tuesday, July 24th. The stock was sold at an average price of $232.58, for a total value of $3,729,420.30. Following the transaction, the chief financial officer now directly owns 28,688 shares of the company’s stock, valued at approximately $6,672,255.04. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Bryan A. Pearson sold 3,424 shares of the stock in a transaction on Tuesday, August 14th. The stock was sold at an average price of $231.67, for a total value of $793,238.08. The disclosure for this sale can be found here. Company insiders own 2.60% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in ADS. Victory Capital Management Inc. grew its stake in shares of Alliance Data Systems by 31.5% during the first quarter. Victory Capital Management Inc. now owns 10,616 shares of the business services provider’s stock valued at $2,260,000 after acquiring an additional 2,545 shares in the last quarter. US Bancorp DE grew its stake in shares of Alliance Data Systems by 2.0% during the first quarter. US Bancorp DE now owns 19,392 shares of the business services provider’s stock valued at $4,128,000 after acquiring an additional 382 shares in the last quarter. Korea Investment CORP grew its stake in shares of Alliance Data Systems by 347.6% during the first quarter. Korea Investment CORP now owns 31,281 shares of the business services provider’s stock valued at $6,658,000 after acquiring an additional 24,293 shares in the last quarter. Tredje AP fonden grew its stake in shares of Alliance Data Systems by 8.8% during the first quarter. Tredje AP fonden now owns 4,570 shares of the business services provider’s stock valued at $973,000 after acquiring an additional 370 shares in the last quarter. Finally, BlackRock Inc. grew its stake in shares of Alliance Data Systems by 1.8% during the first quarter. BlackRock Inc. now owns 3,115,441 shares of the business services provider’s stock valued at $663,153,000 after acquiring an additional 55,274 shares in the last quarter. 93.38% of the stock is currently owned by institutional investors.
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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