Alliance Data Systems Co. (NYSE:ADS) was the recipient of a significant drop in short interest during the month of June. As of June 30th, there was short interest totalling 1,694,500 shares, a drop of 13.5% from the May 30th total of 1,958,000 shares. Approximately 3.3% of the company’s shares are short sold. Based on an average daily volume of 683,600 shares, the short-interest ratio is currently 2.5 days.
Several research analysts have recently issued reports on ADS shares. Deutsche Bank raised their target price on shares of Rockwell Automation from $173.00 to $186.00 and gave the stock a “hold” rating in a report on Friday, April 26th. SunTrust Banks cut their target price on shares of Broadcom to $307.00 and set a “buy” rating on the stock in a report on Friday, June 14th. Stephens restated a “hold” rating and issued a $36.00 target price on shares of Allegiance Bancshares in a report on Monday, April 29th. Oppenheimer started coverage on shares of Pareteum in a report on Friday, April 26th. They issued an “outperform” rating and a $7.00 target price on the stock. Finally, Zacks Investment Research upgraded shares of Triple-S Management from a “hold” rating to a “buy” rating and set a $26.00 target price on the stock in a report on Monday, April 29th. Three investment analysts have rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average price target of $218.92.
A number of large investors have recently added to or reduced their stakes in ADS. CSat Investment Advisory L.P. boosted its holdings in shares of Alliance Data Systems by 130.8% during the 4th quarter. CSat Investment Advisory L.P. now owns 180 shares of the business services provider’s stock valued at $27,000 after buying an additional 102 shares in the last quarter. grace capital bought a new stake in shares of Alliance Data Systems during the 4th quarter valued at $105,000. Lake Point Wealth Management bought a new stake in shares of Alliance Data Systems during the 4th quarter valued at $105,000. Advisors Asset Management Inc. boosted its holdings in shares of Alliance Data Systems by 36.4% during 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 in the last quarter. Finally, Financial Architects Inc bought a new stake in shares of Alliance Data Systems during the 1st quarter valued at $123,000. Institutional investors and hedge funds own 92.24% of the company’s stock.
NYSE:ADS opened at $149.60 on Friday. The company has a market capitalization of $7.84 billion, a PE ratio of 7.07, a P/E/G ratio of 0.49 and a beta of 1.63. The firm has a fifty day moving average of $141.22. Alliance Data Systems has a twelve month low of $133.56 and a twelve month high of $250.27. The company has a current ratio of 2.55, a quick ratio of 2.53 and a debt-to-equity ratio of 7.00.
Alliance Data Systems (NYSE:ADS) last released its quarterly earnings results on Thursday, April 25th. The business services provider reported $3.72 earnings per share for the quarter, missing the consensus estimate of $3.76 by ($0.04). The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.81 billion. Alliance Data Systems had a net margin of 13.10% and a return on equity of 51.42%. The business’s revenue was down 3.4% on a year-over-year basis. During the same quarter last year, the firm earned $4.44 EPS. Analysts predict that Alliance Data Systems will post 18.64 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Tuesday, June 18th. Investors of record on Tuesday, May 14th were issued a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 1.68%. The ex-dividend date was Monday, May 13th. Alliance Data Systems’s dividend payout ratio (DPR) is currently 11.69%.
Alliance Data Systems announced that its board has authorized a stock repurchase plan on Tuesday, July 9th that authorizes the company to repurchase $1.10 billion in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 14.2% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.
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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