Alliance Data Systems (NYSE:ADS) Sets New 1-Year Low at $132.30

Alliance Data Systems Co. (NYSE:ADS) shares reached a new 52-week low on Tuesday . The stock traded as low as $132.30 and last traded at $132.30, with a volume of 3715 shares changing hands. The stock had previously closed at $136.54.

Several research analysts have recently weighed in on the stock. William Blair reissued a “buy” rating on shares of Alliance Data Systems in a report on Monday, July 15th. Stephens raised shares of Alliance Data Systems from an “underweight” rating to an “equal weight” rating and set a $160.00 price objective for the company in a report on Monday, April 29th. Buckingham Research reissued a “neutral” rating and set a $169.00 price objective on shares of Alliance Data Systems in a report on Monday, July 22nd. Zacks Investment Research cut shares of Alliance Data Systems from a “hold” rating to a “sell” rating in a report on Monday, April 29th. Finally, Robert W. Baird set a $173.00 target price on shares of Alliance Data Systems and gave the company a “hold” rating in a report on Friday, July 19th. Three research analysts have rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the company. Alliance Data Systems currently has an average rating of “Hold” and a consensus price target of $197.50.

The firm has a market capitalization of $7.09 billion, a PE ratio of 6.16, a PEG ratio of 0.51 and a beta of 1.63. The company has a quick ratio of 2.64, a current ratio of 2.67 and a debt-to-equity ratio of 7.16. The stock’s fifty day simple moving average is $151.06 and its 200 day simple moving average is $157.40.

Alliance Data Systems (NYSE:ADS) last announced its earnings results on Thursday, July 18th. The business services provider reported $3.66 EPS for the quarter, missing the Zacks’ consensus estimate of $4.08 by ($0.42). Alliance Data Systems had a net margin of 13.01% and a return on equity of 46.72%. The business had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.36 billion. During the same period in the prior year, the company posted $5.01 earnings per share. The firm’s quarterly revenue was down 3.5% on a year-over-year basis. On average, analysts predict that Alliance Data Systems Co. will post 18.92 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 26th. Shareholders of record on Wednesday, September 4th will be issued a dividend of $0.63 per share. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $2.52 dividend on an annualized basis and a yield of 1.91%. Alliance Data Systems’s dividend payout ratio is currently 11.69%.

Alliance Data Systems announced that its Board of Directors has approved a share buyback plan on Tuesday, July 9th that allows the company to buyback $1.10 billion in shares. This buyback authorization allows the business services provider to purchase up to 14.2% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

In other Alliance Data Systems news, CFO Timothy P. King sold 2,600 shares of the company’s stock in a transaction that occurred on Tuesday, July 30th. The shares were sold at an average price of $156.30, for a total transaction of $406,380.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 2.80% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. Financial Advisors Network Inc. boosted its position in shares of Alliance Data Systems by 43.2% in the first quarter. Financial Advisors Network Inc. now owns 6,552 shares of the business services provider’s stock worth $901,000 after purchasing an additional 1,977 shares during the period. Nicollet Investment Management Inc. bought a new position in shares of Alliance Data Systems in the first quarter worth approximately $436,000. CIBC World Markets Inc. boosted its position in shares of Alliance Data Systems by 11.0% in the first quarter. CIBC World Markets Inc. now owns 1,717 shares of the business services provider’s stock worth $300,000 after purchasing an additional 170 shares during the period. Emory University boosted its position in shares of Alliance Data Systems by 17.2% in the first quarter. Emory University now owns 11,142 shares of the business services provider’s stock worth $1,950,000 after purchasing an additional 1,633 shares during the period. Finally, Candriam Luxembourg S.C.A. boosted its position in shares of Alliance Data Systems by 27.8% in the first quarter. Candriam Luxembourg S.C.A. now owns 28,784 shares of the business services provider’s stock worth $5,037,000 after purchasing an additional 6,258 shares during the period. Institutional investors and hedge funds own 92.67% of the company’s stock.

About Alliance Data Systems (NYSE:ADS)

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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