Shares of Alliance Data Systems Co. (NYSE:ADS) dropped 9.3% during trading on Monday . The company traded as low as $161.42 and last traded at $164.04. Approximately 3,055,593 shares changed hands during trading, an increase of 346% from the average daily volume of 684,761 shares. The stock had previously closed at $180.93.
ADS has been the topic of a number of research analyst reports. Morgan Stanley cut shares of Alliance Data Systems from an “equal weight” rating to an “underweight” rating in a research report on Thursday, January 24th. Wells Fargo & Co cut their price target on shares of Alliance Data Systems from $275.00 to $200.00 and set an “outperform” rating on the stock in a research note on Wednesday, January 9th. Robert W. Baird cut their target price on shares of Alliance Data Systems from $250.00 to $203.00 and set an “outperform” rating on the stock in a research note on Tuesday, December 18th. Wolfe Research downgraded Alliance Data Systems from an “outperform” rating to a “market perform” rating in a report on Friday, January 4th. Finally, Zacks Investment Research reiterated a “sell” rating on shares of Alliance Data Systems in a research report on Monday, December 31st. Three research analysts have rated the stock with a sell rating, seven have issued a hold rating and seven have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $225.62.
The company has a quick ratio of 2.13, a current ratio of 2.15 and a debt-to-equity ratio of 6.77. The company has a market capitalization of $8.67 billion, a PE ratio of 7.64, a PEG ratio of 0.66 and a beta of 1.78.
Alliance Data Systems (NYSE:ADS) last issued its quarterly earnings results on Thursday, February 7th. The business services provider reported $7.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.78 by $0.26. Alliance Data Systems had a return on equity of 54.62% and a net margin of 12.36%. The firm had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.13 billion. During the same period last year, the company earned $6.26 EPS. The firm’s quarterly revenue was down 2.4% on a year-over-year basis. As a group, research analysts anticipate that Alliance Data Systems Co. will post 20.92 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 19th. Stockholders of record on Thursday, February 21st were paid a $0.63 dividend. This is a positive change from Alliance Data Systems’s previous quarterly dividend of $0.57. This represents a $2.52 annualized dividend and a dividend yield of 1.53%. The ex-dividend date was Wednesday, February 20th. Alliance Data Systems’s payout ratio is currently 11.69%.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Meeder Asset Management Inc. increased its holdings in Alliance Data Systems by 1,071.9% during 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 last quarter. Pennsylvania Trust Co boosted its position in Alliance Data Systems by 333.5% during the 1st quarter. Pennsylvania Trust Co now owns 5,961 shares of the business services provider’s stock valued at $499,000 after purchasing an additional 4,586 shares during the period. Ingalls & Snyder LLC boosted its position in Alliance Data Systems by 2.5% during the 1st quarter. Ingalls & Snyder LLC now owns 20,081 shares of the business services provider’s stock valued at $3,514,000 after purchasing an additional 497 shares during the period. Cardinal Capital Management boosted its position in Alliance Data Systems by 15.7% during the 1st quarter. Cardinal Capital Management now owns 2,475 shares of the business services provider’s stock valued at $433,000 after purchasing an additional 336 shares during the period. Finally, Malaga Cove Capital LLC boosted its position in Alliance Data Systems by 3.0% during the 1st quarter. Malaga Cove Capital LLC now owns 2,637 shares of the business services provider’s stock valued at $461,000 after purchasing an additional 76 shares during the period. 93.45% of the stock is currently owned by institutional investors and hedge funds.
About Alliance Data Systems (NYSE:ADS)
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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