Alliance Data Systems (NYSE:ADS) was upgraded by investment analysts at Deutsche Bank from a “hold” rating to a “buy” rating in a note issued to investors on Friday.

Several other analysts have also commented on the company. Robert W. Baird set a $173.00 target price on Alliance Data Systems and gave the stock a “hold” rating in a report on Friday, July 19th. BMO Capital Markets dropped their target price on Alliance Data Systems from $183.00 to $173.00 and set a “market perform” rating on the stock in a report on Friday, April 26th. They noted that the move was a valuation call. Stephens upgraded Alliance Data Systems from an “underweight” rating to an “equal weight” rating and set a $160.00 price target on the stock in a research report on Monday, April 29th. Zacks Investment Research downgraded Alliance Data Systems from a “hold” rating to a “sell” rating in a research report on Monday, April 29th. Finally, Oppenheimer reiterated a “hold” rating on shares of Alliance Data Systems in a research report on Friday, April 26th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company. The company has an average rating of “Hold” and an average target price of $197.50.

Alliance Data Systems stock traded down $13.81 during midday trading on Friday, hitting $138.69. 4,962,000 shares of the company were exchanged, compared to its average volume of 1,127,759. The firm has a market capitalization of $7.09 billion, a PE ratio of 6.43, a price-to-earnings-growth ratio of 0.55 and a beta of 1.63. Alliance Data Systems has a fifty-two week low of $133.56 and a fifty-two week high of $250.27. The business has a fifty day simple moving average of $151.18 and a two-hundred day simple moving average of $157.69. The company has a debt-to-equity ratio of 7.16, a quick ratio of 2.64 and a current ratio of 2.67.

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

Alliance Data Systems declared that its Board of Directors has initiated a share repurchase program on Tuesday, July 9th that allows the company to buyback $1.10 billion in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 14.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

In other Alliance Data Systems news, CFO Timothy P. King sold 2,600 shares of the stock in a transaction that occurred on Tuesday, July 30th. The stock was sold at an average price of $156.30, for a total transaction of $406,380.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 2.80% of the company’s stock.

A number of hedge funds have recently modified their holdings of the business. Geode Capital Management LLC lifted its position in shares of Alliance Data Systems by 9.8% in the 4th quarter. Geode Capital Management LLC now owns 671,141 shares of the business services provider’s stock worth $100,563,000 after purchasing an additional 59,750 shares during the period. Pennsylvania Trust Co lifted its position in shares of Alliance Data Systems by 333.5% in the 1st quarter. Pennsylvania Trust Co now owns 5,961 shares of the business services provider’s stock worth $499,000 after purchasing an additional 4,586 shares during the period. Meeder Asset Management Inc. lifted its position in shares of Alliance Data Systems by 1,071.9% in the 1st quarter. Meeder Asset Management Inc. now owns 4,336 shares of the business services provider’s stock worth $759,000 after purchasing an additional 3,966 shares during the period. Nisa Investment Advisors LLC lifted its position in shares of Alliance Data Systems by 11.5% in the 1st quarter. Nisa Investment Advisors LLC now owns 18,289 shares of the business services provider’s stock worth $3,200,000 after purchasing an additional 1,885 shares during the period. Finally, Gulf International Bank UK Ltd lifted its position in shares of Alliance Data Systems by 1.9% in the 1st quarter. Gulf International Bank UK Ltd now owns 10,895 shares of the business services provider’s stock worth $1,906,000 after purchasing an additional 200 shares during the period. Institutional investors own 91.96% of the company’s stock.

Alliance Data Systems Company Profile

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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