Alliance Data Systems (NYSE:ADS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “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. It has made several strategic acquisitions to grow inorganically. 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 $18.10 on $7.8 billion revenues and for 2018, core EPS is projected at $21.50 on revenues of $8.7 billion. However, increasing expenses and dependence on limited clients for revenues, raise concerns. Shares of Alliance Data have underperformed the industry in a year. It is set to release fourth quarter results on Jan 25. A Zacks Rank #3 increases the predictive power of a beat, but combined with the Earnings ESP of -1.27%, makes prediction difficult.”
Other analysts also recently issued research reports about the company. Royal Bank of Canada restated a “buy” rating and set a $293.00 price objective on shares of Alliance Data Systems in a report on Thursday, January 4th. Stephens set a $304.00 price objective on Alliance Data Systems and gave the stock a “buy” rating in a report on Tuesday, January 2nd. ValuEngine upgraded Alliance Data Systems from a “hold” rating to a “buy” rating in a report on Saturday, October 21st. SunTrust Banks restated a “buy” rating and set a $310.00 price objective on shares of Alliance Data Systems in a report on Friday, October 20th. Finally, Keefe, Bruyette & Woods reaffirmed a “buy” rating and set a $300.00 target price on shares of Alliance Data Systems in a research note on Friday, October 6th. Four analysts have rated the stock with a sell rating, nine have issued a hold rating and ten have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $270.18.
Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings data on Thursday, October 19th. The business services provider reported $5.35 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $4.80 by $0.55. The firm had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.97 billion. Alliance Data Systems had a return on equity of 62.95% and a net margin of 7.09%. The business’s revenue for the quarter was up 1.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $4.74 EPS. research analysts forecast that Alliance Data Systems will post 17.08 earnings per share for the current fiscal year.
In related news, CFO Charles L. Horn sold 2,128 shares of the business’s stock in a transaction that occurred on Thursday, November 30th. The stock was sold at an average price of $235.00, for a total value of $500,080.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 2.60% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. ETF Managers Group LLC bought a new stake in shares of Alliance Data Systems in the 2nd quarter valued at approximately $128,000. WFG Advisors LP grew its stake in shares of Alliance Data Systems by 135.9% in the 2nd quarter. WFG Advisors LP now owns 677 shares of the business services provider’s stock valued at $174,000 after buying an additional 390 shares in the last quarter. Simonbaker & Partners LLC bought a new stake in shares of Alliance Data Systems in the 2nd quarter valued at approximately $202,000. TLP Group LLC bought a new stake in shares of Alliance Data Systems in the 2nd quarter valued at approximately $263,000. Finally, GSA Capital Partners LLP bought a new stake in shares of Alliance Data Systems in the 2nd quarter valued at approximately $266,000. 94.59% of the stock is owned by institutional investors and hedge funds.
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About Alliance Data Systems
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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