Alliance Data Systems Corp. (NYSE:ADS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “Alliance Data’s inorganic story seems impressive on strategic buyouts and is banking heavily on the Conversant buyout that has started reaping results. It intends to deploy capital on mergers and acquisitions as well as buybacks in 2016. It has been strengthening its balance sheet with financial flexibility to capitalize on strategic opportunities. The company expects top- and bottom-line growth to gain pace as the year advances with lower yield compression at Card Services, lower loss rates and better performance at Epsilon. All of these factors cushioned the company to raise its 2016 guidance. However, the company’s margin contraction from increasing expenses and dependence on limited clients for revenues are concerns. The company is set to release third quarter results on Oct 20. A Zacks Rank #3 combined with Earnings ESP of 0.24% makes us reasonably confident of an earnings beat.”
A number of other research analysts have also recently commented on ADS. Barclays PLC cut their price target on shares of Alliance Data Systems Corp. from $280.00 to $240.00 and set an “overweight” rating on the stock in a report on Thursday, July 7th. William Blair restated an “outperform” rating on shares of Alliance Data Systems Corp. in a report on Tuesday, July 12th. Pacific Crest restated an “overweight” rating and issued a $250.00 price target on shares of Alliance Data Systems Corp. in a report on Friday, July 15th. Stifel Nicolaus cut shares of Alliance Data Systems Corp. from a “buy” rating to a “hold” rating in a report on Monday, July 18th. Finally, BMO Capital Markets cut shares of Alliance Data Systems Corp. from an “outperform” rating to a “market perform” rating and set a $235.00 price target on the stock. in a report on Friday, July 22nd. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $268.43.
Shares of Alliance Data Systems Corp. (NYSE:ADS) opened at 211.07 on Monday. The company has a market capitalization of $12.35 billion, a price-to-earnings ratio of 26.28 and a beta of 1.51. Alliance Data Systems Corp. has a 1-year low of $176.63 and a 1-year high of $303.75. The firm’s 50-day moving average is $212.24 and its 200-day moving average is $210.78.
Alliance Data Systems Corp. (NYSE:ADS) last posted its quarterly earnings results on Thursday, July 21st. The company reported $3.68 EPS for the quarter, topping the Zacks’ consensus estimate of $3.59 by $0.09. The firm had revenue of $1.75 billion for the quarter, compared to analysts’ expectations of $1.64 billion. Alliance Data Systems Corp. had a net margin of 8.85% and a return on equity of 47.99%. The business’s revenue for the quarter was up 16.5% on a year-over-year basis. During the same period in the prior year, the business posted $3.32 earnings per share. Analysts forecast that Alliance Data Systems Corp. will post $16.88 earnings per share for the current fiscal year.
Several institutional investors have recently modified their holdings of ADS. Vanguard Group Inc. boosted its position in shares of Alliance Data Systems Corp. by 1.1% in the second quarter. Vanguard Group Inc. now owns 5,075,539 shares of the company’s stock valued at $994,401,000 after buying an additional 53,616 shares during the period. ValueAct Holdings L.P. boosted its position in shares of Alliance Data Systems Corp. by 507.6% in the second quarter. ValueAct Holdings L.P. now owns 3,287,910 shares of the company’s stock valued at $644,167,000 after buying an additional 2,746,795 shares during the period. FMR LLC boosted its position in shares of Alliance Data Systems Corp. by 38.9% in the second quarter. FMR LLC now owns 2,592,230 shares of the company’s stock valued at $507,870,000 after buying an additional 726,044 shares during the period. Edgewood Management LLC boosted its position in shares of Alliance Data Systems Corp. by 2.7% in the second quarter. Edgewood Management LLC now owns 2,526,501 shares of the company’s stock valued at $494,992,000 after buying an additional 66,548 shares during the period. Finally, Wellington Management Group LLP boosted its position in shares of Alliance Data Systems Corp. by 33.5% in the first quarter. Wellington Management Group LLP now owns 2,459,926 shares of the company’s stock valued at $541,184,000 after buying an additional 616,829 shares during the period. Institutional investors own 91.39% of the company’s stock.
About Alliance Data Systems Corp.
Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. 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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Alliance Data Systems Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliance Data Systems Corp. and related companies with MarketBeat.com's FREE daily email newsletter.