Russell Investments Group Ltd. Reduces Stock Holdings in Alliance Data Systems Co. (NYSE:ADS)
Russell Investments Group Ltd. decreased its position in Alliance Data Systems Co. (NYSE:ADS) by 20.1% during the 2nd quarter, Holdings Channel.com reports. The firm owned 41,531 shares of the business services provider’s stock after selling 10,438 shares during the period. Russell Investments Group Ltd.’s holdings in Alliance Data Systems were worth $5,801,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors have also recently bought and sold shares of the company. YorkBridge Wealth Partners LLC purchased a new position in Alliance Data Systems in the second quarter valued at approximately $28,000. Advisors Asset Management Inc. raised its holdings in Alliance Data Systems by 36.4% during the 1st quarter. Advisors Asset Management Inc. now owns 690 shares of the business services provider’s stock valued at $121,000 after acquiring an additional 184 shares during the period. Harel Insurance Investments & Financial Services Ltd. bought a new stake in Alliance Data Systems during the 2nd quarter valued at $121,000. Machina Capital S.A.S. bought a new stake in Alliance Data Systems during the 2nd quarter valued at $134,000. Finally, Patriot Financial Group Insurance Agency LLC raised its holdings in Alliance Data Systems by 11.1% during the 2nd quarter. Patriot Financial Group Insurance Agency LLC now owns 1,000 shares of the business services provider’s stock valued at $146,000 after acquiring an additional 100 shares during the period. Institutional investors and hedge funds own 89.65% of the company’s stock.
ADS has been the topic of a number of analyst reports. Goldman Sachs Group raised shares of Alliance Data Systems from a “neutral” rating to a “buy” rating and set a $152.00 target price on the stock in a report on Wednesday. Deutsche Bank raised shares of Alliance Data Systems from a “hold” rating to a “buy” rating in a report on Friday, August 16th. UBS Group raised shares of Alliance Data Systems from a “neutral” rating to a “buy” rating and lowered their target price for the company from $160.00 to $155.00 in a report on Tuesday, September 3rd. William Blair reissued a “buy” rating on shares of Alliance Data Systems in a report on Monday, July 15th. Finally, Buckingham Research reissued a “neutral” rating and set a $169.00 target price on shares of Alliance Data Systems in a report on Monday, July 22nd. Three analysts have rated the stock with a sell rating, six have issued a hold rating and eight have issued a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $188.50.
Alliance Data Systems (NYSE:ADS) last released its quarterly earnings results on Thursday, July 18th. The business services provider reported $3.66 earnings per share for the quarter, missing the consensus estimate of $4.08 by ($0.42). The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.36 billion. Alliance Data Systems had a return on equity of 46.72% and a net margin of 13.01%. The company’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period in the previous year, the company posted $5.01 EPS. As a group, equities analysts expect that Alliance Data Systems Co. will post 18.95 EPS for the current year.
The company also recently declared 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 annualized dividend and a dividend yield of 1.86%. Alliance Data Systems’s payout ratio is currently 11.69%.
Alliance Data Systems declared that its board has approved a share buyback plan on Tuesday, July 9th that permits the company to repurchase $1.10 billion in outstanding shares. This repurchase authorization permits the business services provider to reacquire up to 14.2% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.
In other news, CFO Timothy P. King sold 2,600 shares of the company’s stock in a transaction on Tuesday, July 30th. The shares were sold at an average price of $156.30, for a total value of $406,380.00. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 2.80% of the company’s stock.
Alliance Data Systems 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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