M&T Bank Corp Trims Stock Position in Alliance Data Systems Co. (NYSE:ADS)
M&T Bank Corp cut its holdings in Alliance Data Systems Co. (NYSE:ADS) by 11.5% during the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 5,203 shares of the business services provider’s stock after selling 674 shares during the period. M&T Bank Corp’s holdings in Alliance Data Systems were worth $729,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also added to or reduced their stakes in the company. YorkBridge Wealth Partners LLC purchased a new stake in Alliance Data Systems in the second quarter valued at $28,000. Johnson Financial Group Inc. increased its position in shares of Alliance Data Systems by 940.9% during the 2nd quarter. Johnson Financial Group Inc. now owns 229 shares of the business services provider’s stock worth $32,000 after purchasing an additional 207 shares during the last quarter. Advisors Asset Management Inc. raised its holdings in Alliance Data Systems by 36.4% in the 1st quarter. Advisors Asset Management Inc. now owns 690 shares of the business services provider’s stock valued at $121,000 after buying an additional 184 shares during the period. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in Alliance Data Systems in the 2nd quarter valued at about $121,000. Finally, Machina Capital S.A.S. purchased a new stake in Alliance Data Systems in the 2nd quarter valued at about $134,000. Hedge funds and other institutional investors own 89.65% of the company’s stock.
Several research analysts have weighed in on ADS shares. Buckingham Research reaffirmed a “neutral” rating and set a $169.00 target price on shares of Alliance Data Systems in a research note on Monday, July 22nd. UBS Group raised shares of Alliance Data Systems from a “neutral” rating to a “buy” rating and reduced their price target for the company from $160.00 to $155.00 in a research note on Tuesday, September 3rd. Goldman Sachs Group upgraded shares of Alliance Data Systems from a “neutral” rating to a “buy” rating and set a $152.00 price objective on the stock in a report on Wednesday. Robert W. Baird set a $173.00 price objective on shares of Alliance Data Systems and gave the stock a “hold” rating in a report on Friday, July 19th. Finally, William Blair reaffirmed a “buy” rating on shares of Alliance Data Systems in a research report on Monday, July 15th. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and eight have assigned a buy rating to the stock. Alliance Data Systems presently has a consensus rating of “Hold” and an average target price of $188.50.
Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings data on Thursday, July 18th. The business services provider reported $3.66 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $4.08 by ($0.42). The business had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.36 billion. Alliance Data Systems had a net margin of 13.01% and a return on equity of 46.72%. The company’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period in the previous year, the business posted $5.01 EPS. As a group, equities analysts anticipate that Alliance Data Systems Co. will post 18.95 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 26th. Shareholders of record on Wednesday, September 4th will be issued a dividend of $0.63 per share. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $2.52 dividend on an annualized basis and a yield of 1.90%. Alliance Data Systems’s dividend payout ratio (DPR) is presently 11.69%.
Alliance Data Systems announced that its board has authorized a share repurchase program on Tuesday, July 9th that authorizes the company to buyback $1.10 billion in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 14.2% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.
In other Alliance Data Systems news, CFO Timothy P. King sold 2,600 shares of the firm’s 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 legal filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 2.80% 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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