Alliance Data Systems (NYSE: ADS) recently received a number of ratings updates from brokerages and research firms:

  • 2/8/2019 – Alliance Data Systems was downgraded by analysts at Robert W. Baird from an “outperform” rating to a “neutral” rating. They now have a $171.00 price target on the stock.
  • 2/8/2019 – Alliance Data Systems was given a new $188.00 price target on by analysts at Stephens. They now have a “hold” rating on the stock.
  • 2/8/2019 – Alliance Data Systems was given a new $188.00 price target on by analysts at Deutsche Bank AG. They now have a “buy” rating on the stock.
  • 1/29/2019 – Alliance Data Systems was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Alliance Data’s rising debt level leading to higher interest expenses, increase in, operating expenses, eroding pre-tax margin and reliance on limited clients for revenues are concerns. Shares of Alliance Data have underperformed the industry in a year. Also, the company has seen its 2019 estimate move down 1% in the last 60 days. A Zacks Rank #4 and Earnings ESP of -0.31% makes surprise prediction inconclusive as it reports fourth quarter results on Feb 6. Nonetheless, Alliance Data’s organic growth remained a key catalyst as reflected by solid revenues. Strategic acquisitions helped the company grow inorganically. Solid receivables growth in Card Services along with strong LoyaltyOne should drive the top line. Sturdy balance sheet position leads to effective capital deployment. A lowered corporate tax rate, which reduces net deferred tax liabilities, will likely rake in additional $100 million in free cash flow”
  • 1/24/2019 – Alliance Data Systems was downgraded by analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating.
  • 1/16/2019 – Alliance Data Systems was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Rising debt level leading to higher interest expenses, increase in, operating expenses, eroding pre-tax margin and reliance on limited clients for revenues are concerns. Shares of Alliance Data have underperformed the industry in a year. Also, the company has seen its 2019 estimate move down 1% in the last 60 days. Nonetheless, Alliance Data’s organic growth remained a key catalyst as reflected by solid revenues. Strategic acquisitions helped the company grow inorganically. Solid receivables growth in Card Services along with strong LoyaltyOne should drive the top line. Sturdy balance sheet position leads to effective capital deployment. A lowered corporate tax rate, which reduces net deferred tax liabilities, will likely rake in additional $100 million in free cash flow. A Zacks Rank #4 and Earnings ESP of +0.28% makes surprise prediction inconclusive as it reports fourth quarter results on Feb 6.”
  • 1/9/2019 – Alliance Data Systems had its price target lowered by analysts at Wells Fargo & Co from $275.00 to $200.00. They now have an “outperform” rating on the stock.
  • 1/8/2019 – Alliance Data Systems was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Alliance Data’s organic growth remained a key catalyst as reflected by solid revenues. Strategic acquisitions helped the company grow inorganically. Solid receivables growth in Card Services along with strong LoyaltyOne should drive the top line. Sturdy balance sheet position leads to effective capital deployment. A lowered corporate tax rate, which reduces net deferred tax liabilities, will likely rake in additional $100 million in free cash flow. For 2018, core EPS is expected between $22.50 and $23 on $8.2 billion revenues. However, Rising debt level leading to higher interest expenses, increase in, operating expenses, eroding pre-tax margin and reliance on limited clients for revenues are concerns. Shares of Alliance Data have underperformed the industry in a year. Also, the company has seen its 2019 estimate move down 1% in the last 60 days.”
  • 1/4/2019 – Alliance Data Systems was downgraded by analysts at Wolfe Research from an “outperform” rating to a “market perform” rating.
  • 12/31/2018 – Alliance Data Systems had its “sell” rating reaffirmed by analysts at Zacks Investment Research. According to Zacks, “Shares of Alliance Data have underperformed the industry year to date. Rising debt level leading to higher interest expenses, increase in, operating expenses, eroding pre-tax margin and reliance on limited clients for revenues are concerns. Nonetheless, Alliance Data’s organic growth remained a key catalyst as reflected by solid revenues. Strategic acquisitions helped the company grow inorganically. Solid receivables growth in Card Services along with strong LoyaltyOne should drive the top line. Sturdy balance sheet position leads to effective capital deployment. A lowered corporate tax rate, which reduces net deferred tax liabilities, will likely rake in additional $100 million in free cash flow. For 2018, core EPS is expected between $22.50 and $23 on $8.2 billion revenues.”
  • 12/18/2018 – Alliance Data Systems had its price target lowered by analysts at Robert W. Baird from $250.00 to $203.00. They now have an “outperform” rating on the stock.

Shares of NYSE:ADS traded up $1.75 on Monday, reaching $166.08. 469,864 shares of the company’s stock were exchanged, compared to its average volume of 716,848. Alliance Data Systems Co. has a twelve month low of $142.58 and a twelve month high of $250.93. The firm has a market cap of $8.95 billion, a PE ratio of 7.70, a PEG ratio of 0.58 and a beta of 1.88. The company has a quick ratio of 2.38, a current ratio of 1.83 and a debt-to-equity ratio of 5.74.

Alliance Data Systems (NYSE:ADS) last announced its earnings results on Thursday, February 7th. The business services provider reported $7.04 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $6.78 by $0.26. Alliance Data Systems had a net margin of 12.36% and a return on equity of 54.62%. The firm had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.13 billion. During the same quarter in the prior year, the business posted $6.26 EPS. The business’s revenue was down 2.4% compared to the same quarter last year. On average, research analysts expect that Alliance Data Systems Co. will post 23 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 19th. Shareholders of record on Thursday, February 21st will be given a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.52%. The ex-dividend date of this dividend is Wednesday, February 20th. This is a positive change from Alliance Data Systems’s previous quarterly dividend of $0.57. Alliance Data Systems’s dividend payout ratio is presently 10.58%.

In other news, insider Valueact Capital Master Fund, sold 200,000 shares of the company’s stock in a transaction that occurred on Thursday, November 29th. The shares were sold at an average price of $198.60, for a total transaction of $39,720,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Holdings L.P. Valueact sold 125,000 shares of the company’s 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 disclosure for this sale can be found here. Corporate insiders own 2.60% of the company’s stock.

Several institutional investors have recently modified their holdings of ADS. FMR LLC lifted its holdings in shares of Alliance Data Systems by 45.3% during the 2nd quarter. FMR LLC now owns 2,595,591 shares of the business services provider’s stock worth $605,293,000 after acquiring an additional 809,427 shares during the period. Boston Partners lifted its holdings in shares of Alliance Data Systems by 26.5% during the 4th quarter. Boston Partners now owns 1,286,032 shares of the business services provider’s stock worth $193,008,000 after acquiring an additional 269,436 shares during the period. Morgan Stanley lifted its stake in Alliance Data Systems by 116.4% in the 3rd quarter. Morgan Stanley now owns 279,689 shares of the business services provider’s stock valued at $66,052,000 after purchasing an additional 150,435 shares during the last quarter. BlackRock Inc. lifted its stake in Alliance Data Systems by 4.3% in the 4th quarter. BlackRock Inc. now owns 3,265,413 shares of the business services provider’s stock valued at $490,074,000 after purchasing an additional 133,870 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in Alliance Data Systems by 30.2% in the 3rd quarter. Bank of New York Mellon Corp now owns 533,241 shares of the business services provider’s stock valued at $125,931,000 after purchasing an additional 123,748 shares during the last quarter. 96.48% of the stock is owned by institutional investors.

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.

See Also: What is the downside to momentum investing?

Receive News & Ratings for Alliance Data Systems Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliance Data Systems Co and related companies with MarketBeat.com's FREE daily email newsletter.