Alliance Data Systems (ADS) Rating Reiterated by Jefferies Financial Group
Jefferies Financial Group restated their buy rating on shares of Alliance Data Systems (NYSE:ADS) in a research note published on Tuesday morning, MarketBeat reports. They currently have a $280.00 price target on the business services provider’s stock.
A number of other equities analysts have also commented on ADS. Zacks Investment Research lowered Alliance Data Systems from a buy rating to a hold rating in a research note on Thursday, August 2nd. ValuEngine lowered Alliance Data Systems from a sell rating to a strong sell rating in a research note on Thursday, August 2nd. Stephens reissued a buy rating and issued a $288.00 price objective on shares of Alliance Data Systems in a research note on Friday, July 20th. Oppenheimer reaffirmed a hold rating on shares of Alliance Data Systems in a research note on Thursday, July 19th. Finally, Robert W. Baird reaffirmed a hold rating and set a $235.00 price target on shares of Alliance Data Systems in a research note on Friday, April 20th. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and eleven have issued a buy rating to the company. Alliance Data Systems currently has an average rating of Hold and a consensus target price of $262.06.
Alliance Data Systems stock opened at $230.61 on Tuesday. The company has a current ratio of 23.57, a quick ratio of 2.11 and a debt-to-equity ratio of 11.38. The firm has a market capitalization of $12.74 billion, a price-to-earnings ratio of 11.41, a price-to-earnings-growth ratio of 0.82 and a beta of 1.72. Alliance Data Systems has a 52 week low of $192.02 and a 52 week high of $278.33.
Alliance Data Systems declared that its Board of Directors has initiated a stock repurchase plan on Monday, July 30th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the business services provider to reacquire up to 4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 19th. Stockholders of record on Tuesday, August 14th will be paid a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a dividend yield of 0.99%. The ex-dividend date is Monday, August 13th. Alliance Data Systems’s dividend payout ratio (DPR) is presently 12.47%.
In related news, insider Valueact Capital Master Fund, acquired 2,646 shares of the company’s stock in a transaction that occurred on Tuesday, May 15th. The stock was acquired at an average price of $205.00 per share, for a total transaction of $542,430.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Charles L. Horn sold 16,035 shares of the company’s stock in a transaction dated Tuesday, July 24th. The shares were sold at an average price of $232.58, for a total value of $3,729,420.30. Following the completion of the sale, the chief financial officer now owns 28,688 shares of the company’s stock, valued at approximately $6,672,255.04. The disclosure for this sale can be found here. Corporate 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. Edgestream Partners L.P. increased its holdings in Alliance Data Systems by 3.1% in the second quarter. Edgestream Partners L.P. now owns 26,237 shares of the business services provider’s stock valued at $6,118,000 after purchasing an additional 779 shares during the last quarter. BlackRock Inc. increased its holdings in Alliance Data Systems by 1.6% in the second quarter. BlackRock Inc. now owns 3,164,367 shares of the business services provider’s stock valued at $737,931,000 after purchasing an additional 48,926 shares during the last quarter. CIBC Asset Management Inc increased its holdings in Alliance Data Systems by 5.9% in the second quarter. CIBC Asset Management Inc now owns 5,195 shares of the business services provider’s stock valued at $1,211,000 after purchasing an additional 290 shares during the last quarter. Standard Life Aberdeen plc increased its holdings in Alliance Data Systems by 20.6% in the second quarter. Standard Life Aberdeen plc now owns 132,891 shares of the business services provider’s stock valued at $30,991,000 after purchasing an additional 22,676 shares during the last quarter. Finally, Private Advisor Group LLC bought a new stake in Alliance Data Systems in the second quarter valued at about $541,000. Institutional investors and hedge funds own 93.77% 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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