BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp cut its holdings in shares of Alliance Data Systems Co. (NYSE:ADS) by 20.2% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 14,928 shares of the business services provider’s stock after selling 3,769 shares during the quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp’s holdings in Alliance Data Systems were worth $3,481,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. BlackRock Inc. lifted its position in Alliance Data Systems by 1.6% during the second quarter. BlackRock Inc. now owns 3,164,367 shares of the business services provider’s stock worth $737,931,000 after buying an additional 48,926 shares during the period. Parnassus Investments CA lifted its position in Alliance Data Systems by 42.3% during the second quarter. Parnassus Investments CA now owns 1,245,000 shares of the business services provider’s stock worth $290,334,000 after buying an additional 370,000 shares during the period. JPMorgan Chase & Co. lifted its position in Alliance Data Systems by 188.6% during the first quarter. JPMorgan Chase & Co. now owns 969,957 shares of the business services provider’s stock worth $206,465,000 after buying an additional 633,865 shares during the period. Bank of Montreal Can lifted its position in Alliance Data Systems by 33.3% during the second quarter. Bank of Montreal Can now owns 768,119 shares of the business services provider’s stock worth $179,126,000 after buying an additional 192,056 shares during the period. Finally, Millennium Management LLC lifted its position in Alliance Data Systems by 9,617.9% during the first quarter. Millennium Management LLC now owns 399,016 shares of the business services provider’s stock worth $84,935,000 after buying an additional 394,910 shares during the period. Hedge funds and other institutional investors own 93.66% of the company’s stock.
Several equities analysts recently weighed in on the company. JPMorgan Chase & Co. upgraded Alliance Data Systems from a “neutral” rating to an “overweight” rating and set a $281.00 target price on the stock in a research report on Tuesday, August 14th. ValuEngine upgraded Alliance Data Systems from a “strong sell” rating to a “sell” rating in a report on Friday, August 10th. Zacks Investment Research downgraded Alliance Data Systems from a “buy” rating to a “hold” rating in a report on Thursday, August 9th. Jefferies Financial Group restated a “buy” rating and issued a $280.00 price objective on shares of Alliance Data Systems in a report on Tuesday, August 7th. Finally, Stephens restated a “buy” rating and issued a $288.00 price objective on shares of Alliance Data Systems in a report on Friday, July 20th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and twelve have issued a buy rating to the company. Alliance Data Systems currently has a consensus rating of “Hold” and a consensus target price of $263.18.
Alliance Data Systems stock opened at $237.98 on Friday. The stock has a market capitalization of $13.11 billion, a PE ratio of 13.02, a PEG ratio of 0.93 and a beta of 1.77. The company has a current ratio of 2.14, a quick ratio of 2.12 and a debt-to-equity ratio of 7.25. Alliance Data Systems Co. has a 12 month low of $192.02 and a 12 month high of $278.33.
Alliance Data Systems (NYSE:ADS) last announced its earnings results on Thursday, July 19th. The business services provider reported $5.01 EPS for the quarter, beating the consensus estimate of $4.64 by $0.37. The business had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $1.93 billion. Alliance Data Systems had a return on equity of 59.18% and a net margin of 11.35%. The company’s revenue was up 8.1% on a year-over-year basis. During the same period last year, the business posted $3.84 EPS. equities analysts forecast that Alliance Data Systems Co. will post 21.6 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 19th. Investors of record on Tuesday, August 14th will be issued a dividend of $0.57 per share. The ex-dividend date is Monday, August 13th. This represents a $2.28 annualized dividend and a dividend yield of 0.96%. Alliance Data Systems’s payout ratio is currently 12.47%.
Alliance Data Systems announced that its Board of Directors has approved a stock repurchase plan on Monday, July 30th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the business services provider to purchase up to 4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.
In related news, CFO Charles L. Horn sold 16,035 shares of the firm’s stock in a transaction dated Tuesday, July 24th. The stock was sold at an average price of $232.58, for a total transaction of $3,729,420.30. Following the sale, the chief financial officer now directly owns 28,688 shares in the company, valued at approximately $6,672,255.04. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Bryan A. Pearson sold 3,424 shares of the firm’s stock in a transaction dated Tuesday, August 14th. The shares were sold at an average price of $231.67, for a total value of $793,238.08. The disclosure for this sale can be found here. Company insiders own 2.60% 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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