Analysts Set Alliance Data Systems Co. (NYSE:ADS) Price Target at $108.27

Shares of Alliance Data Systems Co. (NYSE:ADSGet Rating) have been assigned an average recommendation of “Hold” from the fifteen ratings firms that are currently covering the firm, Marketbeat.com reports. Nine equities research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $107.50.

ADS has been the topic of a number of analyst reports. StockNews.com initiated coverage on Alliance Data Systems in a research note on Wednesday. They issued a “hold” rating on the stock. Deutsche Bank Aktiengesellschaft decreased their price target on Alliance Data Systems from $115.00 to $85.00 and set a “hold” rating on the stock in a research note on Monday, February 14th. Wolfe Research lowered Alliance Data Systems from an “outperform” rating to a “peer perform” rating in a research report on Thursday, March 17th. Oppenheimer lowered Alliance Data Systems from an “outperform” rating to a “market perform” rating in a research report on Monday, March 7th. Finally, Royal Bank of Canada cut their price objective on Alliance Data Systems from $90.00 to $80.00 in a research report on Friday, January 28th.

Several institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. boosted its stake in Alliance Data Systems by 2.3% in the 4th quarter. BlackRock Inc. now owns 4,558,511 shares of the business services provider’s stock worth $303,460,000 after purchasing an additional 102,477 shares in the last quarter. Palestra Capital Management LLC raised its holdings in Alliance Data Systems by 4.3% in the third quarter. Palestra Capital Management LLC now owns 3,514,505 shares of the business services provider’s stock worth $354,578,000 after buying an additional 146,190 shares during the last quarter. Franklin Resources Inc. lifted its stake in shares of Alliance Data Systems by 123.3% in the third quarter. Franklin Resources Inc. now owns 3,395,532 shares of the business services provider’s stock worth $342,574,000 after buying an additional 1,874,671 shares in the last quarter. Southpoint Capital Advisors LP grew its holdings in shares of Alliance Data Systems by 84.9% during the fourth quarter. Southpoint Capital Advisors LP now owns 2,450,000 shares of the business services provider’s stock valued at $163,097,000 after buying an additional 1,125,000 shares during the last quarter. Finally, Turtle Creek Asset Management Inc. increased its position in shares of Alliance Data Systems by 79.8% during the fourth quarter. Turtle Creek Asset Management Inc. now owns 1,830,788 shares of the business services provider’s stock valued at $121,876,000 after acquiring an additional 812,699 shares in the last quarter. 99.97% of the stock is currently owned by hedge funds and other institutional investors.

The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.95. The stock has a 50 day moving average of $63.80 and a 200 day moving average of $74.73. The stock has a market cap of $2.84 billion, a PE ratio of 3.55 and a beta of 2.10. Alliance Data Systems has a 12 month low of $53.30 and a 12 month high of $128.16.

Alliance Data Systems (NYSE:ADSGet Rating) last announced its quarterly earnings results on Thursday, January 27th. The business services provider reported $1.21 EPS for the quarter, topping the Zacks’ consensus estimate of $0.47 by $0.74. The business had revenue of $855.00 million for the quarter, compared to analysts’ expectations of $929.30 million. Alliance Data Systems had a return on equity of 43.42% and a net margin of 19.75%. During the same period in the previous year, the firm earned $3.21 EPS. As a group, sell-side analysts forecast that Alliance Data Systems will post 11.74 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Friday, March 18th. Stockholders of record on Friday, February 11th were given a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a dividend yield of ∞. The ex-dividend date was Thursday, February 10th. Alliance Data Systems’s dividend payout ratio is presently 5.24%.

Alliance Data Systems declared that its Board of Directors has initiated a share repurchase plan on Tuesday, March 1st that allows the company to buyback 200,000 shares. This buyback authorization allows the business services provider to repurchase shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

About Alliance Data Systems (Get Rating)

Alliance Data Systems Corp. engages in the provision of data-driven and transaction-based marketing, customer loyalty and payment solutions. Its products and services include credit cards, loan financing, processing, and servicing, marketing, data and analytics, and digital offerings. The company was founded in 1996 and is headquartered in Columbus, Ohio.

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