Alliance Data Systems (NYSE:ADS) Coverage Initiated at StockNews.com

StockNews.com assumed coverage on shares of Alliance Data Systems (NYSE:ADSGet Rating) in a research report issued to clients and investors on Thursday. The firm set a “hold” rating on the business services provider’s stock.

Several other equities analysts have also issued reports on the company. Morgan Stanley lowered Alliance Data Systems from an “overweight” rating to an “equal weight” rating and decreased their price objective for the company from $104.00 to $67.00 in a research report on Monday, March 28th. Deutsche Bank Aktiengesellschaft reduced their price target on Alliance Data Systems from $115.00 to $85.00 and set a “hold” rating for the company in a research report on Monday, February 14th. Wolfe Research downgraded Alliance Data Systems from an “outperform” rating to a “peer perform” rating in a research report on Thursday, March 17th. Oppenheimer downgraded 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 reduced their price target on Alliance Data Systems from $90.00 to $80.00 in a research report on Friday, January 28th. Nine research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $109.09.

The firm has a market cap of $2.84 billion, a price-to-earnings 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. The stock’s 50-day moving average is $63.61 and its 200-day moving average is $74.44. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.13 and a quick ratio of 1.13.

Alliance Data Systems (NYSE:ADSGet Rating) last issued its quarterly earnings data on Thursday, January 27th. The business services provider reported $1.21 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.47 by $0.74. Alliance Data Systems had a return on equity of 43.42% and a net margin of 19.75%. The business had revenue of $855.00 million during the quarter, compared to analyst estimates of $929.30 million. During the same period in the previous year, the firm earned $3.21 EPS. On average, equities research analysts expect that Alliance Data Systems will post 11.74 EPS for the current fiscal year.

Alliance Data Systems declared that its Board of Directors has initiated a share buyback program on Tuesday, March 1st that authorizes the company to buyback 200,000 shares. This buyback authorization authorizes the business services provider to purchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Several institutional investors and hedge funds have recently modified their holdings of the company. Hudson Bay Capital Management LP bought a new stake in Alliance Data Systems in the third quarter worth approximately $5,045,000. Franklin Resources Inc. increased its holdings in 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 purchasing an additional 1,874,671 shares in the last quarter. Schroder Investment Management Group increased its holdings in Alliance Data Systems by 3.9% in the third quarter. Schroder Investment Management Group now owns 107,573 shares of the business services provider’s stock worth $10,853,000 after purchasing an additional 4,075 shares in the last quarter. swisspartners Ltd. increased its holdings in Alliance Data Systems by 25.2% in the third quarter. swisspartners Ltd. now owns 29,850 shares of the business services provider’s stock worth $3,012,000 after purchasing an additional 6,000 shares in the last quarter. Finally, Schonfeld Strategic Advisors LLC bought a new stake in Alliance Data Systems in the third quarter worth approximately $414,000. Institutional investors own 99.97% of the company’s stock.

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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Analyst Recommendations for Alliance Data Systems (NYSE:ADS)

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