Deutsche Bank lowered shares of Alliance Data Systems (NYSE:ADS) from a buy rating to a hold rating in a research report report published on Friday morning, BenzingaRatingsTable reports. Deutsche Bank currently has $158.00 price target on the business services provider’s stock, down from their previous price target of $162.00.

Several other research analysts have also issued reports on the stock. SunTrust Banks reaffirmed a buy rating and issued a $180.00 target price on shares of Alliance Data Systems in a research note on Friday, June 14th. William Blair reaffirmed a buy rating on shares of Alliance Data Systems in a research note on Monday, July 15th. Robert W. Baird set a $173.00 target price on shares of Alliance Data Systems and gave the company a hold rating in a research note on Friday, July 19th. Stephens raised shares of Alliance Data Systems from an underweight rating to an equal weight rating and set a $160.00 target price on the stock in a research note on Monday, April 29th. Finally, BMO Capital Markets reduced their target price on shares of Alliance Data Systems from $183.00 to $173.00 and set a market perform rating on the stock in a research note on Friday, April 26th. They noted that the move was a valuation call. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and six have issued a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus target price of $197.50.

Shares of NYSE ADS opened at $136.54 on Friday. The firm has a market capitalization of $7.79 billion, a PE ratio of 6.33, a price-to-earnings-growth ratio of 0.56 and a beta of 1.63. The company has a current ratio of 2.67, a quick ratio of 2.64 and a debt-to-equity ratio of 7.16. Alliance Data Systems has a 1 year low of $133.56 and a 1 year high of $250.27. The firm’s 50-day moving average is $151.06 and its 200-day moving average is $157.40.

Alliance Data Systems (NYSE:ADS) last issued its earnings results on Thursday, July 18th. The business services provider reported $3.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.08 by ($0.42). The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.36 billion. Alliance Data Systems had a net margin of 13.01% and a return on equity of 46.72%. The firm’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period last year, the business posted $5.01 EPS. As a group, equities research analysts anticipate that Alliance Data Systems will post 18.92 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 26th. Investors of record on Wednesday, September 4th will be given a $0.63 dividend. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.85%. Alliance Data Systems’s dividend payout ratio is 11.69%.

Alliance Data Systems announced that its Board of Directors has authorized a share repurchase plan on Tuesday, July 9th that permits the company to repurchase $1.10 billion in outstanding shares. This repurchase authorization permits the business services provider to purchase up to 14.2% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

In related news, CFO Timothy P. King sold 2,600 shares of the stock in a transaction that occurred on Tuesday, July 30th. The shares were sold at an average price of $156.30, for a total value of $406,380.00. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 2.80% of the company’s stock.

A number of hedge funds have recently made changes to their positions in ADS. Point72 Asset Management L.P. raised its holdings in Alliance Data Systems by 884.3% during the 2nd quarter. Point72 Asset Management L.P. now owns 777,295 shares of the business services provider’s stock worth $108,922,000 after buying an additional 698,324 shares during the period. Equity Investment Corp acquired a new stake in Alliance Data Systems during the 1st quarter worth approximately $64,243,000. Caisse DE Depot ET Placement DU Quebec raised its holdings in Alliance Data Systems by 47.7% during the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 834,282 shares of the business services provider’s stock worth $145,983,000 after buying an additional 269,600 shares during the period. Nuveen Asset Management LLC raised its holdings in Alliance Data Systems by 22,164.0% during the 2nd quarter. Nuveen Asset Management LLC now owns 261,379 shares of the business services provider’s stock worth $36,627,000 after buying an additional 260,205 shares during the period. Finally, Parnassus Investments CA raised its holdings in Alliance Data Systems by 11.8% during the 2nd quarter. Parnassus Investments CA now owns 1,409,429 shares of the business services provider’s stock worth $197,503,000 after buying an additional 149,311 shares during the period. Hedge funds and other institutional investors own 92.67% 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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Analyst Recommendations for Alliance Data Systems (NYSE:ADS)

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