Southpoint Capital Advisors LP Reduces Position in Alliance Data Systems Co. (NYSE:ADS)

Southpoint Capital Advisors LP reduced its stake in Alliance Data Systems Co. (NYSE:ADS) by 25.0% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,500,000 shares of the business services provider’s stock after selling 500,000 shares during the period. Alliance Data Systems accounts for about 2.8% of Southpoint Capital Advisors LP’s investment portfolio, making the stock its 12th biggest holding. Southpoint Capital Advisors LP’s holdings in Alliance Data Systems were worth $168,135,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently modified their holdings of the business. Jericho Capital Asset Management L.P. acquired a new position in Alliance Data Systems in the first quarter valued at approximately $92,574,000. Utah Retirement Systems acquired a new position in Alliance Data Systems in the first quarter valued at approximately $269,000. Voloridge Investment Management LLC boosted its stake in Alliance Data Systems by 435.5% in the first quarter. Voloridge Investment Management LLC now owns 218,352 shares of the business services provider’s stock valued at $24,475,000 after acquiring an additional 177,576 shares during the period. Eaton Vance Management acquired a new position in Alliance Data Systems in the first quarter valued at approximately $168,000. Finally, Morgan Stanley boosted its stake in Alliance Data Systems by 22.6% in the first quarter. Morgan Stanley now owns 524,682 shares of the business services provider’s stock valued at $58,812,000 after acquiring an additional 96,574 shares during the period. Institutional investors own 93.48% of the company’s stock.

Shares of NYSE ADS traded down $3.32 during trading on Thursday, hitting $96.50. The company had a trading volume of 4,769 shares, compared to its average volume of 676,758. The company has a market cap of $4.80 billion, a P/E ratio of 6.74, a P/E/G ratio of 0.35 and a beta of 2.60. Alliance Data Systems Co. has a 52 week low of $39.77 and a 52 week high of $128.16. The firm has a 50-day moving average of $110.67. The company has a debt-to-equity ratio of 4.44, a quick ratio of 1.69 and a current ratio of 1.70.

Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings results on Wednesday, April 28th. The business services provider reported $6.28 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $3.18 by $3.10. Alliance Data Systems had a return on equity of 49.06% and a net margin of 11.12%. The company had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.08 billion. During the same quarter in the prior year, the company earned $0.75 earnings per share. The firm’s revenue was down 21.5% on a year-over-year basis. As a group, equities research analysts expect that Alliance Data Systems Co. will post 15.35 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, June 18th. Shareholders of record on Friday, May 14th were paid a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 0.87%. The ex-dividend date was Thursday, May 13th. Alliance Data Systems’s dividend payout ratio (DPR) is currently 9.27%.

Several brokerages have recently issued reports on ADS. Oppenheimer reduced their price objective on Alliance Data Systems from $145.00 to $135.00 and set an “outperform” rating for the company in a research report on Thursday, May 13th. Stephens boosted their price objective on Alliance Data Systems from $124.00 to $133.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 19th. Citigroup downgraded Alliance Data Systems from a “buy” rating to a “neutral” rating and set a $130.00 price objective for the company. in a research report on Friday, June 4th. downgraded Alliance Data Systems from a “buy” rating to a “neutral” rating and set a $130.00 price objective for the company. in a research report on Friday, June 4th. Finally, Royal Bank of Canada began coverage on Alliance Data Systems in a research report on Wednesday, June 16th. They set an “outperform” rating for the company. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company’s stock. Alliance Data Systems presently has an average rating of “Hold” and a consensus target price of $163.65.

Alliance Data Systems Company Profile

Alliance Data Systems Corporation provides data-driven marketing, loyalty, and payment solutions in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, LoyaltyOne and Card Services. The LoyaltyOne segment offers AIR MILES reward program; short term loyalty program; and loyalty services, which include loyalty consulting, customer analytics, creative services, and mobile solutions.

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Institutional Ownership by Quarter for Alliance Data Systems (NYSE:ADS)

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