Alliance Data Systems Co. (NYSE:ADS) Sees Significant Drop in Short Interest

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Alliance Data Systems Co. (NYSE:ADS) was the recipient of a significant decrease in short interest during the month of June. As of June 30th, there was short interest totalling 1,694,500 shares, a decrease of 13.5% from the May 30th total of 1,958,000 shares. Approximately 3.3% of the company’s stock are sold short. Based on an average daily trading volume, of 683,600 shares, the short-interest ratio is currently 2.5 days.

ADS opened at $149.60 on Friday. The company has a market capitalization of $7.84 billion, a price-to-earnings ratio of 7.07, a P/E/G ratio of 0.49 and a beta of 1.63. The firm’s 50-day moving average is $141.22. The company has a debt-to-equity ratio of 7.00, a quick ratio of 2.53 and a current ratio of 2.55. Alliance Data Systems has a fifty-two week low of $133.56 and a fifty-two week high of $250.27.

Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings results on Thursday, April 25th. The business services provider reported $3.72 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $3.76 by ($0.04). The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.81 billion. Alliance Data Systems had a net margin of 13.10% and a return on equity of 51.42%. Alliance Data Systems’s quarterly revenue was down 3.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.44 EPS. Equities analysts predict that Alliance Data Systems will post 18.64 EPS for the current year.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 18th. Shareholders of record on Tuesday, May 14th were given a dividend of $0.63 per share. The ex-dividend date of this dividend was Monday, May 13th. This represents a $2.52 dividend on an annualized basis and a yield of 1.68%. Alliance Data Systems’s dividend payout ratio is presently 11.69%.

Alliance Data Systems declared that its Board of Directors has authorized a share repurchase program on Tuesday, July 9th that allows the company to buyback $1.10 billion in shares. This buyback authorization allows the business services provider to buy up to 14.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Several analysts have recently commented on the stock. Deutsche Bank increased their target price on shares of Rockwell Automation from $173.00 to $186.00 and gave the company a “hold” rating in a report on Friday, April 26th. Zacks Investment Research upgraded shares of Triple-S Management from a “hold” rating to a “buy” rating and set a $26.00 target price for the company in a report on Monday, April 29th. BMO Capital Markets set a $32.00 target price on shares of Axalta Coating Systems and gave the company a “hold” rating in a report on Friday, April 26th. Stephens reiterated a “hold” rating and issued a $36.00 target price on shares of Allegiance Bancshares in a report on Monday, April 29th. Finally, Oppenheimer assumed coverage on shares of Pareteum in a report on Friday, April 26th. They issued an “outperform” rating and a $7.00 target price for the company. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have given a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $218.92.

A number of large investors have recently modified their holdings of ADS. Bank of New York Mellon Corp boosted its position in Alliance Data Systems by 5.8% during the fourth quarter. Bank of New York Mellon Corp now owns 564,386 shares of the business services provider’s stock worth $84,703,000 after purchasing an additional 31,145 shares during the period. Commonwealth Equity Services LLC boosted its position in shares of Alliance Data Systems by 5.3% in the fourth quarter. Commonwealth Equity Services LLC now owns 3,259 shares of the business services provider’s stock valued at $489,000 after acquiring an additional 163 shares during the period. Raymond James Financial Services Advisors Inc. boosted its position in shares of Alliance Data Systems by 10.9% in the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 2,140 shares of the business services provider’s stock valued at $321,000 after acquiring an additional 210 shares during the period. Nomura Asset Management Co. Ltd. boosted its position in shares of Alliance Data Systems by 8.5% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 7,883 shares of the business services provider’s stock valued at $1,183,000 after acquiring an additional 620 shares during the period. Finally, Commonwealth Bank of Australia boosted its position in shares of Alliance Data Systems by 42.6% in the fourth quarter. Commonwealth Bank of Australia now owns 7,713 shares of the business services provider’s stock valued at $1,156,000 after acquiring an additional 2,304 shares during the period. Hedge funds and other institutional investors own 92.24% of the company’s stock.

Alliance Data Systems Company 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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