Alliance Data Systems Corp. (NYSE:ADS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.

According to Zacks, “Alliance Data’s margin contraction from increasing expenses and dependence on limited clients for revenues are concerns. Though adverse forex were a drag, the company does not expect any forex impact drag in the second half of 2016. Absence of any near term catalysts there were no earnings momentum over the last few weeks. Nonetheless, Alliance Data’s inorganic story seems impressive on strategic buyouts and is banking heavily on the Conversant buyout that has started reaping results. It intends to deploy capital on mergers and acquisitions as well as buybacks in 2016. It has been strengthening its balance sheet with financial flexibility to capitalize on strategic opportunities. The company expects top- and bottom-line growth to gain pace as the year advances with lower yield compression at Card Services, lower loss rates and better performance at Epsilon. All of these factors cushioned the company to raise its 2016 guidance.”

Several other equities research analysts have also weighed in on ADS. Vetr lowered shares of Alliance Data Systems Corp. from a “strong-buy” rating to a “buy” rating and set a $248.36 target price on the stock. in a report on Tuesday, May 31st. Jefferies Group upped their target price on shares of Alliance Data Systems Corp. from $240.00 to $265.00 and gave the stock a “buy” rating in a report on Monday, July 25th. Credit Suisse Group AG reaffirmed a “hold” rating and issued a $227.00 target price on shares of Alliance Data Systems Corp. in a report on Tuesday, June 7th. William Blair reaffirmed an “outperform” rating on shares of Alliance Data Systems Corp. in a report on Tuesday, July 12th. Finally, TheStreet lowered shares of Alliance Data Systems Corp. from a “buy” rating to a “hold” rating in a report on Thursday, July 21st. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $271.02.

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Alliance Data Systems Corp. (NYSE:ADS) traded down 0.11% during mid-day trading on Wednesday, hitting $213.51. 160,476 shares of the company were exchanged. The company has a 50 day moving average of $211.48 and a 200 day moving average of $210.79. Alliance Data Systems Corp. has a 12-month low of $176.63 and a 12-month high of $303.75. The stock has a market cap of $12.50 billion, a P/E ratio of 26.58 and a beta of 1.40.

Alliance Data Systems Corp. (NYSE:ADS) last announced its quarterly earnings data on Thursday, July 21st. The company reported $3.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.59 by $0.09. Alliance Data Systems Corp. had a net margin of 8.85% and a return on equity of 47.99%. The company earned $1.75 billion during the quarter, compared to analysts’ expectations of $1.64 billion. During the same quarter in the prior year, the company posted $3.32 EPS. The business’s revenue was up 16.5% on a year-over-year basis. On average, equities research analysts expect that Alliance Data Systems Corp. will post $16.85 earnings per share for the current fiscal year.

A number of hedge funds have recently made changes to their positions in the company. First Interstate Bank bought a new stake in shares of Alliance Data Systems Corp. during the second quarter valued at approximately $129,000. IFP Advisors Inc increased its stake in shares of Alliance Data Systems Corp. by 1.3% in the first quarter. IFP Advisors Inc now owns 620 shares of the company’s stock valued at $136,000 after buying an additional 8 shares during the period. Glenmede Trust Co. NA increased its stake in shares of Alliance Data Systems Corp. by 198.4% in the second quarter. Glenmede Trust Co. NA now owns 755 shares of the company’s stock valued at $146,000 after buying an additional 502 shares during the period. CENTRAL TRUST Co increased its stake in shares of Alliance Data Systems Corp. by 53.4% in the second quarter. CENTRAL TRUST Co now owns 873 shares of the company’s stock valued at $171,000 after buying an additional 304 shares during the period. Finally, Mizuho Asset Management Co. Ltd. increased its stake in shares of Alliance Data Systems Corp. by 91.6% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 893 shares of the company’s stock valued at $175,000 after buying an additional 427 shares during the period. Hedge funds and other institutional investors own 91.31% of the company’s stock.

Alliance Data Systems Corp. Company Profile

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.

5 Day Chart for NYSE:ADS

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