Alliance Data Systems (NYSE:ADS) Reaches New 12-Month High on Analyst Upgrade


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Alliance Data Systems Co. (NYSE:ADS) shares reached a new 52-week high during trading on Monday after Royal Bank of Canada raised their price target on the stock from $114.00 to $126.00. Royal Bank of Canada currently has an outperform rating on the stock. Alliance Data Systems traded as high as $122.34 and last traded at $121.06, with a volume of 1774 shares. The stock had previously closed at $117.85.

A number of other research analysts have also issued reports on ADS. Morgan Stanley boosted their target price on Alliance Data Systems from $105.00 to $150.00 and gave the company an “overweight” rating in a report on Thursday, April 1st. The Goldman Sachs Group cut shares of Alliance Data Systems from a “buy” rating to a “neutral” rating and set a $77.00 price objective on the stock. in a research note on Thursday, January 7th. Wells Fargo & Company upgraded shares of Alliance Data Systems from an “underweight” rating to an “equal weight” rating and set a $75.00 target price for the company in a research note on Friday, January 29th. Wolfe Research upgraded shares of Alliance Data Systems from a “peer perform” rating to an “outperform” rating in a research note on Wednesday, January 6th. Finally, Zacks Investment Research raised shares of Alliance Data Systems from a “sell” rating to a “hold” rating and set a $121.00 price target for the company in a report on Tuesday, March 16th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and eight have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $152.80.

A number of institutional investors and hedge funds have recently bought and sold shares of ADS. Institutional & Family Asset Management LLC purchased a new position in shares of Alliance Data Systems in the fourth quarter valued at $37,000. Regent Peak Wealth Advisors LLC purchased a new position in Alliance Data Systems during the 4th quarter valued at about $63,000. Financial Management Professionals Inc. purchased a new position in Alliance Data Systems during the 1st quarter valued at about $75,000. Eukles Asset Management lifted its holdings in shares of Alliance Data Systems by 14.8% in the first quarter. Eukles Asset Management now owns 1,264 shares of the business services provider’s stock valued at $142,000 after purchasing an additional 163 shares in the last quarter. Finally, Intersect Capital LLC purchased a new stake in shares of Alliance Data Systems in the first quarter valued at about $204,000. Institutional investors own 79.38% of the company’s stock.

The company has a current ratio of 1.74, a quick ratio of 1.72 and a debt-to-equity ratio of 6.31. The firm has a market capitalization of $5.95 billion, a PE ratio of 17.16, a PEG ratio of 1.93 and a beta of 2.58. The stock’s 50 day moving average price is $111.57 and its two-hundred day moving average price is $83.91.

Alliance Data Systems (NYSE:ADS) last announced its earnings results on Wednesday, April 28th. The business services provider reported $6.28 EPS for the quarter, beating analysts’ consensus estimates of $3.18 by $3.10. Alliance Data Systems had a return on equity of 36.63% and a net margin of 6.82%. The firm had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.08 billion. During the same quarter in the prior year, the firm earned $0.75 EPS. Alliance Data Systems’s quarterly revenue was down 21.5% on a year-over-year basis. Analysts expect that Alliance Data Systems Co. will post 8.4 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, June 18th. Shareholders of record on Friday, May 14th will be paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 0.70%. The ex-dividend date of this dividend is Thursday, May 13th. Alliance Data Systems’s dividend payout ratio is currently 5.13%.

About Alliance Data Systems (NYSE:ADS)

Alliance Data Systems Corporation provides data-driven marketing, loyalty, and payment solutions in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, LoyaltyOne and Card Services. The LoyaltyOne segment offers AIR MILES reward program; short term loyalty program; and loyalty services, which include loyalty consulting, customer analytics, creative services, and mobile solutions.

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