Alliance Data Systems Corporation (NYSE:ADS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday, July 14th.
According to Zacks, “Shares of Alliance Data have underperformed the Zacks categorized Financial Transaction Services industry, year to date. There were no earning momentums in the last 30 days. The company is set to report second-quarter results on Jul 20. As per our proven model a Zacks Rank #3 when combined with an Earnings ESP of 0.00% makes prediction difficult. Alliance Data remains well positioned for growth from significant opportunities owing to the current trend in consumer-based businesses shifting their marketing spends to data-driven marketing strategies. Solid receivables growth in Card Services, along with strength in LoyaltyOne and Epsilon segments, should continue to drive top-line growth. For 2017, Core EPS is expected at $18.50 on $7.7 billion revenues. However, we remain apprehensive owing to several challenges that limit profitability of the company. These include increasing expenses and dependence on limited clients for revenues.”
A number of other research firms also recently issued reports on ADS. Oppenheimer Holdings, Inc. set a $185.00 price target on shares of Alliance Data Systems Corporation and gave the company a “sell” rating in a research note on Thursday, April 20th. Barclays PLC upped their price target on shares of Alliance Data Systems Corporation from $255.00 to $285.00 and gave the company an “overweight” rating in a research note on Friday, April 21st. Argus assumed coverage on shares of Alliance Data Systems Corporation in a research note on Thursday, July 13th. They set a “buy” rating and a $309.00 price target on the stock. BidaskClub raised shares of Alliance Data Systems Corporation from a “hold” rating to a “buy” rating in a research note on Friday, June 23rd. Finally, TheStreet raised shares of Alliance Data Systems Corporation from a “c” rating to a “b” rating in a research note on Thursday, April 20th. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and ten have issued a buy rating to the company’s stock. Alliance Data Systems Corporation presently has an average rating of “Hold” and an average price target of $251.63.
Shares of Alliance Data Systems Corporation (NYSE ADS) opened at 239.27 on Friday. The stock has a market cap of $13.30 billion, a PE ratio of 27.28 and a beta of 1.76. The stock’s 50 day moving average is $253.35 and its 200 day moving average is $244.81. Alliance Data Systems Corporation has a 52-week low of $193.67 and a 52-week high of $266.25.
Alliance Data Systems Corporation (NYSE:ADS) last issued its earnings results on Thursday, July 20th. The business services provider reported $3.84 earnings per share for the quarter, topping the Zacks’ consensus estimate of $3.47 by $0.37. Alliance Data Systems Corporation had a net margin of 6.77% and a return on equity of 59.67%. The firm had revenue of $1.82 billion during the quarter, compared to analyst estimates of $1.85 billion. During the same quarter in the prior year, the business earned $3.68 earnings per share. Alliance Data Systems Corporation’s revenue for the quarter was up 4.2% on a year-over-year basis. Equities research analysts forecast that Alliance Data Systems Corporation will post $18.06 earnings per share for the current year.
Alliance Data Systems Corporation declared that its board has approved a share buyback program on Thursday, July 27th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the business services provider to purchase shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s management believes its stock is undervalued.
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Several hedge funds and other institutional investors have recently bought and sold shares of ADS. Johnson Financial Group Inc. boosted its position in Alliance Data Systems Corporation by 9.8% in the first quarter. Johnson Financial Group Inc. now owns 426 shares of the business services provider’s stock worth $106,000 after buying an additional 38 shares during the last quarter. Benjamin F. Edwards & Company Inc. boosted its position in Alliance Data Systems Corporation by 68.6% in the first quarter. Benjamin F. Edwards & Company Inc. now owns 462 shares of the business services provider’s stock worth $115,000 after buying an additional 188 shares during the last quarter. Quadrant Capital Group LLC boosted its position in Alliance Data Systems Corporation by 0.8% in the first quarter. Quadrant Capital Group LLC now owns 482 shares of the business services provider’s stock worth $116,000 after buying an additional 4 shares during the last quarter. FNY Partners Fund LP boosted its position in Alliance Data Systems Corporation by 163.0% in the first quarter. FNY Partners Fund LP now owns 526 shares of the business services provider’s stock worth $130,000 after buying an additional 326 shares during the last quarter. Finally, Invictus RG boosted its position in Alliance Data Systems Corporation by 189.7% in the first quarter. Invictus RG now owns 565 shares of the business services provider’s stock worth $141,000 after buying an additional 370 shares during the last quarter. Hedge funds and other institutional investors own 99.03% of the company’s stock.
About Alliance Data Systems Corporation
Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. 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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