SunTrust Banks Cuts Alliance Data Systems (NYSE:ADS) Price Target to $160.00

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Alliance Data Systems (NYSE:ADS) had its price target decreased by SunTrust Banks to $160.00 in a research note published on Tuesday morning, The Fly reports. SunTrust Banks currently has a buy rating on the business services provider’s stock. SunTrust Banks also issued estimates for Alliance Data Systems’ Q3 2019 earnings at $5.86 EPS and Q4 2019 earnings at $5.96 EPS.

Other equities research analysts also recently issued research reports about the stock. BMO Capital Markets decreased their target price on shares of Alliance Data Systems from $183.00 to $173.00 and set a market perform rating for the company in a research note on Friday, April 26th. They noted that the move was a valuation call. Robert W. Baird set a $173.00 target price on shares of Alliance Data Systems and gave the stock a hold rating in a research note on Friday, July 19th. Stephens upgraded shares of Alliance Data Systems from an underweight rating to an equal weight rating and set a $160.00 target price for the company in a research note on Monday, April 29th. William Blair reiterated a buy rating on shares of Alliance Data Systems in a research note on Monday, July 15th. Finally, Oppenheimer reiterated a hold rating on shares of Alliance Data Systems in a research note on Friday, April 26th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the stock. Alliance Data Systems presently has an average rating of Hold and an average target price of $195.50.

Shares of ADS opened at $135.53 on Tuesday. Alliance Data Systems has a fifty-two week low of $130.63 and a fifty-two week high of $250.27. The company has a market capitalization of $6.98 billion, a price-to-earnings ratio of 6.29, a price-to-earnings-growth ratio of 0.50 and a beta of 1.63. The firm has a 50-day simple moving average of $150.53 and a 200-day simple moving average of $156.73. The company has a debt-to-equity ratio of 7.16, a quick ratio of 2.64 and a current ratio of 2.67.

Alliance Data Systems (NYSE:ADS) last announced its 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). Alliance Data Systems had a return on equity of 46.72% and a net margin of 13.01%. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same quarter last year, the company posted $5.01 EPS. Alliance Data Systems’s quarterly revenue was down 3.5% on a year-over-year basis. Equities research analysts forecast that Alliance Data Systems will post 18.95 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 26th. Investors of record on Wednesday, September 4th will be given a $0.63 dividend. The ex-dividend date is Tuesday, September 3rd. This represents a $2.52 dividend on an annualized basis and a yield of 1.86%. Alliance Data Systems’s payout ratio is currently 11.69%.

Alliance Data Systems announced that its Board of Directors has approved a share buyback plan on Tuesday, July 9th that permits the company to repurchase $1.10 billion in shares. This repurchase authorization permits the business services provider to reacquire up to 14.2% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

In related news, CFO Timothy P. King sold 2,600 shares of the firm’s stock in a transaction dated Tuesday, July 30th. The shares were sold at an average price of $156.30, for a total value of $406,380.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 2.80% of the stock is owned by company insiders.

A number of large investors have recently made changes to their positions in the stock. YorkBridge Wealth Partners LLC purchased a new position in Alliance Data Systems in the second quarter valued at about $28,000. Johnson Financial Group Inc. increased its holdings in Alliance Data Systems by 940.9% in the second quarter. Johnson Financial Group Inc. now owns 229 shares of the business services provider’s stock valued at $32,000 after buying an additional 207 shares in the last quarter. CSat Investment Advisory L.P. increased its holdings in Alliance Data Systems by 92.1% in the second quarter. CSat Investment Advisory L.P. now owns 436 shares of the business services provider’s stock valued at $61,000 after buying an additional 209 shares in the last quarter. Advisors Asset Management Inc. increased its holdings in Alliance Data Systems by 36.4% in the first quarter. Advisors Asset Management Inc. now owns 690 shares of the business services provider’s stock valued at $121,000 after buying an additional 184 shares in the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. purchased a new position in Alliance Data Systems in the second quarter valued at about $121,000. Hedge funds and other institutional investors own 92.67% 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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