Alliance Data Systems Corp. (ADS) Stock Rating Upgraded by Zacks Investment Research
Alliance Data Systems Corp. (NYSE:ADS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Monday.
According to Zacks, “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. However, the company’s margin contraction from increasing expenses and dependence on limited clients for revenues are concerns. The company is set to release third quarter results on Oct 20. A Zacks Rank #3 combined with Earnings ESP of 0.24% makes us reasonably confident of an earnings beat.”
A number of other analysts have also commented on ADS. Barclays PLC decreased their price objective on Alliance Data Systems Corp. from $280.00 to $240.00 and set an “overweight” rating for the company in a report on Thursday, July 7th. William Blair reissued an “outperform” rating on shares of Alliance Data Systems Corp. in a report on Tuesday, July 12th. Pacific Crest reissued an “overweight” rating and set a $250.00 price objective on shares of Alliance Data Systems Corp. in a report on Friday, July 15th. Stifel Nicolaus lowered Alliance Data Systems Corp. from a “buy” rating to a “hold” rating in a report on Monday, July 18th. Finally, BMO Capital Markets lowered Alliance Data Systems Corp. from an “outperform” rating to a “market perform” rating and set a $235.00 price objective for the company. in a report on Friday, July 22nd. They noted that the move was a valuation call. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Alliance Data Systems Corp. currently has an average rating of “Buy” and a consensus target price of $268.43.
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Shares of Alliance Data Systems Corp. (NYSE:ADS) traded up 0.61% during trading on Monday, hitting $211.06. The stock had a trading volume of 67,371 shares. The stock has a market capitalization of $12.35 billion, a price-to-earnings ratio of 26.27 and a beta of 1.51. Alliance Data Systems Corp. has a one year low of $176.63 and a one year high of $303.75. The stock has a 50 day moving average price of $211.67 and a 200-day moving average price of $211.00.
Alliance Data Systems Corp. (NYSE:ADS) last issued its earnings results on Thursday, July 21st. The company reported $3.68 EPS for the quarter, beating analysts’ consensus estimates of $3.59 by $0.09. Alliance Data Systems Corp. had a return on equity of 47.99% and a net margin of 8.85%. The business earned $1.75 billion during the quarter, compared to analyst estimates of $1.64 billion. During the same period in the previous year, the company posted $3.32 EPS. The firm’s revenue was up 16.5% compared to the same quarter last year. On average, equities research analysts predict that Alliance Data Systems Corp. will post $16.88 earnings per share for the current year.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in ADS. Cleararc Capital Inc. boosted its position in Alliance Data Systems Corp. by 0.7% in the second quarter. Cleararc Capital Inc. now owns 1,443 shares of the company’s stock valued at $283,000 after buying an additional 10 shares during the last quarter. First Allied Advisory Services Inc. boosted its position in Alliance Data Systems Corp. by 0.6% in the second quarter. First Allied Advisory Services Inc. now owns 2,113 shares of the company’s stock worth $411,000 after buying an additional 12 shares in the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. boosted its position in Alliance Data Systems Corp. by 0.3% in the second quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 8,900 shares of the company’s stock worth $1,744,000 after buying an additional 27 shares in the last quarter. Dynamic Technology Lab Private Ltd boosted its position in Alliance Data Systems Corp. by 2.6% in the second quarter. Dynamic Technology Lab Private Ltd now owns 1,691 shares of the company’s stock worth $331,000 after buying an additional 43 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its position in Alliance Data Systems Corp. by 1.9% in the second quarter. Victory Capital Management Inc. now owns 2,572 shares of the company’s stock worth $504,000 after buying an additional 48 shares in the last quarter. 91.39% of the stock is currently owned by hedge funds and other institutional investors.
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.
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