Southside Capital LLC acquired a new position in Alliance Data Systems Co. (NYSE:ADS) in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 40,000 shares of the business services provider’s stock, valued at approximately $5,605,000.
Other hedge funds have also modified their holdings of the company. YorkBridge Wealth Partners LLC bought a new position in Alliance Data Systems during the 2nd quarter valued at $28,000. Advisors Asset Management Inc. boosted its stake 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 purchasing an additional 184 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. bought a new position in Alliance Data Systems during the 2nd quarter valued at $121,000. Financial Architects Inc bought a new position in Alliance Data Systems during the 1st quarter valued at $123,000. Finally, Parallel Advisors LLC boosted its stake in Alliance Data Systems by 21.7% during the 1st quarter. Parallel Advisors LLC now owns 747 shares of the business services provider’s stock valued at $131,000 after purchasing an additional 133 shares in the last quarter. 92.67% of the stock is owned by institutional investors and hedge funds.
A number of equities analysts have issued reports on ADS shares. Deutsche Bank raised Alliance Data Systems from a “hold” rating to a “buy” rating in a research note on Friday, August 16th. Zacks Investment Research lowered Alliance Data Systems from a “hold” rating to a “sell” rating in a research note on Monday, April 29th. Stephens raised Alliance Data Systems from an “underweight” rating to an “equal weight” rating and set a $160.00 price target for the company in a research note on Monday, April 29th. William Blair reaffirmed a “buy” rating on shares of Alliance Data Systems in a research note on Monday, July 15th. Finally, Robert W. Baird set a $173.00 price target on Alliance Data Systems and gave the company a “hold” rating in a research note on Friday, July 19th. Three analysts have rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $195.50.
Alliance Data Systems (NYSE:ADS) last released its quarterly earnings data 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 company had revenue of $1.35 billion for 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 business’s revenue was down 3.5% compared to the same quarter last year. During the same period in the prior year, the business earned $5.01 earnings per share. Sell-side analysts expect that Alliance Data Systems Co. will post 18.95 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 26th. Stockholders of record on Wednesday, September 4th will be paid a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 2.05%. The ex-dividend date of this dividend is Tuesday, September 3rd. Alliance Data Systems’s dividend payout ratio is presently 11.69%.
Alliance Data Systems announced that its board has authorized a stock repurchase program on Tuesday, July 9th that authorizes the company to buyback $1.10 billion in shares. This buyback authorization authorizes the business services provider to repurchase up to 14.2% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.
In other news, CFO Timothy P. King sold 2,600 shares of the firm’s stock in a transaction on Tuesday, July 30th. The stock was sold at an average price of $156.30, for a total transaction of $406,380.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 2.80% 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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