Alliance Data Systems Co. (NYSE:ADS) – Equities research analysts at William Blair issued their Q1 2019 earnings per share (EPS) estimates for shares of Alliance Data Systems in a report issued on Monday, October 15th, according to Zacks Investment Research. William Blair analyst R. Napoli anticipates that the business services provider will earn $4.55 per share for the quarter. William Blair also issued estimates for Alliance Data Systems’ Q2 2019 earnings at $5.30 EPS, Q3 2019 earnings at $6.72 EPS and Q4 2019 earnings at $8.73 EPS.
Several other analysts have also recently issued reports on the stock. Stephens cut shares of Alliance Data Systems from an “overweight” rating to an “equal” rating and set a $288.00 price objective for the company. in a research note on Monday, September 17th. They noted that the move was a valuation call. Bank of America started coverage on shares of Alliance Data Systems in a research note on Monday, September 17th. They set a “buy” rating and a $290.00 price objective for the company. Deutsche Bank set a $253.00 price objective on shares of Alliance Data Systems and gave the company a “buy” rating in a research note on Thursday, September 20th. Oppenheimer reiterated a “hold” rating on shares of Alliance Data Systems in a report on Friday, October 5th. Finally, JPMorgan Chase & Co. upgraded shares of Alliance Data Systems from a “neutral” rating to an “overweight” rating and set a $281.00 target price on the stock in a report on Tuesday, August 14th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and thirteen have assigned a buy rating to the company. The company presently has an average rating of “Buy” and a consensus target price of $262.74.
NYSE ADS traded down $4.66 during trading hours on Thursday, hitting $208.26. 294,971 shares of the company’s stock traded hands, compared to its average volume of 679,278. Alliance Data Systems has a 52-week low of $192.02 and a 52-week high of $278.33. The stock has a market cap of $11.59 billion, a PE ratio of 11.39, a P/E/G ratio of 0.81 and a beta of 1.71. The company has a current ratio of 2.41, a quick ratio of 2.12 and a debt-to-equity ratio of 7.32.
Alliance Data Systems (NYSE:ADS) last announced its quarterly earnings data on Thursday, October 18th. The business services provider reported $6.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.19 by $0.07. Alliance Data Systems had a net margin of 12.11% and a return on equity of 56.33%. The company had revenue of $2.02 billion during the quarter, compared to analysts’ expectations of $2.03 billion. During the same quarter in the prior year, the company earned $5.35 EPS. Alliance Data Systems’s revenue was up 5.4% compared to the same quarter last year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 19th. Shareholders of record on Wednesday, November 14th will be issued a $0.57 dividend. The ex-dividend date of this dividend is Tuesday, November 13th. This represents a $2.28 annualized dividend and a yield of 1.09%. Alliance Data Systems’s payout ratio is 12.47%.
Alliance Data Systems announced that its board has initiated a share buyback program on Monday, July 30th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the business services provider to purchase up to 4% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.
In other news, insider Valueact Capital Master Fund, sold 675,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 6th. The shares were sold at an average price of $200.00, for a total value of $135,000,000.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Bryan A. Pearson sold 3,424 shares of the company’s stock in a transaction that occurred on Tuesday, August 14th. The stock was sold at an average price of $231.67, for a total transaction of $793,238.08. The disclosure for this sale can be found here. Insiders own 2.60% of the company’s stock.
Hedge funds have recently modified their holdings of the company. ValueAct Holdings L.P. lifted its holdings in shares of Alliance Data Systems by 3.5% in the 2nd quarter. ValueAct Holdings L.P. now owns 6,082,646 shares of the business services provider’s stock worth $1,418,473,000 after acquiring an additional 205,246 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Alliance Data Systems by 3.5% during the 2nd quarter. Dimensional Fund Advisors LP now owns 258,065 shares of the business services provider’s stock worth $60,186,000 after buying an additional 8,800 shares in the last quarter. Schroder Investment Management Group lifted its holdings in Alliance Data Systems by 142.8% during the 2nd quarter. Schroder Investment Management Group now owns 84,743 shares of the business services provider’s stock worth $19,962,000 after buying an additional 49,845 shares in the last quarter. BlackRock Inc. lifted its holdings in Alliance Data Systems by 1.6% during the 2nd quarter. BlackRock Inc. now owns 3,164,367 shares of the business services provider’s stock worth $737,931,000 after buying an additional 48,926 shares in the last quarter. Finally, IFM Investors Pty Ltd lifted its holdings in Alliance Data Systems by 16.5% during the 3rd quarter. IFM Investors Pty Ltd now owns 2,722 shares of the business services provider’s stock worth $643,000 after buying an additional 385 shares in the last quarter. Hedge funds and other institutional investors own 94.03% 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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