SunTrust Banks Cuts Alliance Data Systems (NYSE:ADS) Price Target to $150.00

Alliance Data Systems (NYSE:ADS) had its price objective decreased by SunTrust Banks from $160.00 to $150.00 in a research report released on Tuesday, BenzingaRatingsTable 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 $5.20 EPS, Q4 2019 earnings at $6.28 EPS and FY2019 earnings at $18.59 EPS.

A number of other analysts also recently issued reports on ADS. Robert W. Baird set a $173.00 price objective on shares of Alliance Data Systems and gave the stock a hold rating in a report on Friday, July 19th. Buckingham Research restated a neutral rating and set a $169.00 price objective on shares of Alliance Data Systems in a report on Monday, July 22nd. UBS Group upgraded shares of Alliance Data Systems from a neutral rating to a buy rating and decreased their price objective for the stock from $160.00 to $155.00 in a report on Tuesday, September 3rd. Goldman Sachs Group upgraded shares of Alliance Data Systems from a neutral rating to a buy rating and set a $152.00 price objective for the company in a report on Wednesday, September 11th. Finally, William Blair restated a buy rating on shares of Alliance Data Systems in a report on Monday, July 15th. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have issued a buy rating to the company’s stock. Alliance Data Systems presently has an average rating of Hold and a consensus price target of $178.36.

NYSE ADS opened at $127.78 on Tuesday. Alliance Data Systems has a 52-week low of $118.40 and a 52-week high of $240.93. The company has a 50-day simple moving average of $133.87 and a 200 day simple moving average of $149.29. The company has a debt-to-equity ratio of 7.16, a quick ratio of 2.64 and a current ratio of 2.67. The company has a market capitalization of $6.48 billion, a PE ratio of 5.93, a price-to-earnings-growth ratio of 0.50 and a beta of 1.70.

Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings data on Thursday, July 18th. The business services provider reported $3.66 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter last year, the business posted $5.01 EPS. The business’s quarterly revenue was down 3.5% on a year-over-year basis. As a group, analysts forecast that Alliance Data Systems will post 18.91 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 26th. Stockholders of record on Wednesday, September 4th were paid a $0.63 dividend. The ex-dividend date of this dividend was Tuesday, September 3rd. This represents a $2.52 annualized dividend and a dividend yield of 1.97%. Alliance Data Systems’s payout ratio is 11.69%.

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

In other news, CFO Timothy P. King sold 2,600 shares of Alliance Data Systems 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.80% of the stock is owned by company insiders.

Several institutional investors and hedge funds have recently bought and sold shares of ADS. Point72 Asset Management L.P. grew its stake in Alliance Data Systems by 884.3% during the second quarter. Point72 Asset Management L.P. now owns 777,295 shares of the business services provider’s stock valued at $108,922,000 after acquiring an additional 698,324 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec grew its stake in Alliance Data Systems by 47.7% during the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 834,282 shares of the business services provider’s stock valued at $145,983,000 after acquiring an additional 269,600 shares in the last quarter. Nuveen Asset Management LLC grew its stake in Alliance Data Systems by 22,164.0% during the second quarter. Nuveen Asset Management LLC now owns 261,379 shares of the business services provider’s stock valued at $36,627,000 after acquiring an additional 260,205 shares in the last quarter. Parnassus Investments CA grew its stake in Alliance Data Systems by 11.8% during the second quarter. Parnassus Investments CA now owns 1,409,429 shares of the business services provider’s stock valued at $197,503,000 after acquiring an additional 149,311 shares in the last quarter. Finally, Check Capital Management Inc. CA grew its stake in Alliance Data Systems by 53.3% during the second quarter. Check Capital Management Inc. CA now owns 394,299 shares of the business services provider’s stock valued at $55,253,000 after acquiring an additional 137,072 shares in the last quarter. Hedge funds and other institutional investors own 89.63% of the company’s stock.

About Alliance Data Systems

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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