Alliancebernstein L.P. boosted its stake in Alliance Data Systems Co. (NYSE:ADS) by 18.7% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 112,760 shares of the business services provider’s stock after buying an additional 17,747 shares during the quarter. Alliancebernstein L.P. owned approximately 0.21% of Alliance Data Systems worth $26,629,000 at the end of the most recent quarter.
A number of other hedge funds also recently added to or reduced their stakes in ADS. Principal Financial Group Inc. lifted its holdings in Alliance Data Systems by 2.4% in the first quarter. Principal Financial Group Inc. now owns 75,909 shares of the business services provider’s stock valued at $16,158,000 after acquiring an additional 1,786 shares during the period. Piedmont Investment Advisors LLC bought a new position in Alliance Data Systems in the second quarter valued at about $127,000. Wells Fargo & Company MN lifted its holdings in Alliance Data Systems by 1.5% in the second quarter. Wells Fargo & Company MN now owns 102,342 shares of the business services provider’s stock valued at $23,867,000 after acquiring an additional 1,469 shares during the period. Hikari Power Ltd bought a new position in Alliance Data Systems in the second quarter valued at about $285,000. Finally, Victory Capital Management Inc. lifted its holdings in Alliance Data Systems by 12.4% in the second quarter. Victory Capital Management Inc. now owns 11,929 shares of the business services provider’s stock valued at $2,782,000 after acquiring an additional 1,313 shares during the period. Institutional investors own 94.63% of the company’s stock.
A number of research analysts have weighed in on the company. Wells Fargo & Co lowered their target price on Alliance Data Systems from $295.00 to $275.00 and set an “outperform” rating on the stock in a report on Friday, October 19th. Barclays began coverage on Alliance Data Systems in a research note on Wednesday, November 14th. They issued an “overweight” rating and a $254.00 price objective on the stock. SunTrust Banks decreased their price objective on Alliance Data Systems to $250.00 and set a “buy” rating on the stock in a research note on Monday, November 19th. Bank of America began coverage on Alliance Data Systems in a research note on Monday, September 17th. They issued a “buy” rating and a $290.00 price objective on the stock. Finally, TheStreet downgraded Alliance Data Systems from a “b-” rating to a “c+” rating in a research note on Monday, November 26th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and thirteen have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $254.25.
In related news, Director Holdings L.P. Valueact sold 125,000 shares of Alliance Data Systems stock in a transaction that occurred on Wednesday, November 28th. The stock was sold at an average price of $199.10, for a total transaction of $24,887,500.00. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Valueact Capital Master Fund, sold 675,000 shares of Alliance Data Systems stock in a transaction that occurred on Tuesday, November 6th. The shares were sold at an average price of $200.00, for a total value of $135,000,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 1,000,000 shares of company stock worth $199,607,500 in the last three months. 2.60% of the stock is owned by corporate insiders.
Shares of ADS opened at $200.36 on Monday. The company has a market cap of $10.91 billion, a P/E ratio of 10.96, a price-to-earnings-growth ratio of 0.76 and a beta of 1.71. Alliance Data Systems Co. has a 12-month low of $189.23 and a 12-month high of $278.33. The company has a debt-to-equity ratio of 7.32, a quick ratio of 2.38 and a current ratio of 2.41.
Alliance Data Systems (NYSE:ADS) last issued its earnings results on Thursday, October 18th. The business services provider reported $6.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.19 by $0.07. The company had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $2.03 billion. Alliance Data Systems had a return on equity of 56.33% and a net margin of 12.11%. The firm’s quarterly revenue was up 5.4% on a year-over-year basis. During the same quarter last year, the company earned $5.35 EPS. On average, equities analysts expect that Alliance Data Systems Co. will post 21.53 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 19th. Investors of record on Wednesday, November 14th will be paid a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a yield of 1.14%. The ex-dividend date of this dividend is Tuesday, November 13th. Alliance Data Systems’s dividend payout ratio (DPR) is presently 12.47%.
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Alliance Data Systems Company Profile
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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