Envestnet Asset Management Inc. trimmed its holdings in shares of Alliance Data Systems Co. (NYSE:ADS) by 30.7% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 8,035 shares of the business services provider’s stock after selling 3,556 shares during the quarter. Envestnet Asset Management Inc.’s holdings in Alliance Data Systems were worth $1,126,000 as of its most recent SEC filing.
Several other hedge funds have also made changes to their positions in the company. Financial Advisors Network Inc. increased its position in shares of Alliance Data Systems by 43.2% during 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 in the last quarter. Artemis Investment Management LLP purchased a new stake in shares of Alliance Data Systems during the second quarter worth approximately $5,871,000. CIBC World Markets Inc. increased its position in shares of Alliance Data Systems by 11.0% during 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 in the last quarter. Emory University increased its position in shares of Alliance Data Systems by 17.2% during 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 in the last quarter. Finally, Candriam Luxembourg S.C.A. increased its position in shares of Alliance Data Systems by 27.8% during 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 in the last quarter. 89.65% of the stock is owned by institutional investors and hedge funds.
Several analysts have issued reports on ADS shares. Deutsche Bank upgraded Alliance Data Systems from a “hold” rating to a “buy” rating in a report on Friday, August 16th. SunTrust Banks dropped their target price on Alliance Data Systems to $160.00 and set a “buy” rating for the company in a report on Tuesday, August 20th. Robert W. Baird set a $173.00 target price on Alliance Data Systems and gave the company a “hold” rating in a report on Friday, July 19th. William Blair restated a “buy” rating on shares of Alliance Data Systems in a report on Monday, July 15th. Finally, Goldman Sachs Group upgraded Alliance Data Systems from a “neutral” rating to a “buy” rating and set a $152.00 target price for the company in a report on Wednesday. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and eight have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $188.50.
ADS traded down $0.96 during mid-day trading on Friday, hitting $133.73. 552,514 shares of the stock were exchanged, compared to its average volume of 1,563,550. The company has a current ratio of 2.67, a quick ratio of 2.64 and a debt-to-equity ratio of 7.16. The company has a market cap of $6.76 billion, a PE ratio of 6.20, a PEG ratio of 0.48 and a beta of 1.70. The firm’s fifty day moving average is $140.98 and its two-hundred day moving average is $152.17. Alliance Data Systems Co. has a 1-year low of $118.40 and a 1-year high of $250.27.
Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings results on Thursday, July 18th. The business services provider reported $3.66 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.08 by ($0.42). The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.36 billion. Alliance Data Systems had a net margin of 13.01% and a return on equity of 46.72%. Alliance Data Systems’s revenue for the quarter was down 3.5% on a year-over-year basis. During the same period in the prior year, the business earned $5.01 EPS. As a group, research analysts anticipate that Alliance Data Systems Co. will post 18.95 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 26th. Stockholders of record on Wednesday, September 4th will be issued a $0.63 dividend. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.88%. Alliance Data Systems’s payout ratio is currently 11.69%.
Alliance Data Systems declared that its board has initiated a share repurchase program on Tuesday, July 9th that permits the company to buyback $1.10 billion in outstanding shares. This buyback authorization permits the business services provider to buy up to 14.2% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.
In other news, CFO Timothy P. King sold 2,600 shares of the stock in a transaction dated Tuesday, July 30th. The stock was sold at an average price of $156.30, for a total value of $406,380.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.80% of the company’s stock.
About Alliance Data Systems
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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