King Luther Capital Management Corp trimmed its position in Alliance Data Systems Co. (NYSE:ADS) by 30.7% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 25,693 shares of the business services provider’s stock after selling 11,394 shares during the period. King Luther Capital Management Corp’s holdings in Alliance Data Systems were worth $5,992,000 at the end of the most recent quarter.
Other institutional investors have also recently modified their holdings of the company. Centaurus Financial Inc. bought a new stake in shares of Alliance Data Systems in the first quarter valued at about $106,000. Piedmont Investment Advisors LLC bought a new stake in shares of Alliance Data Systems in the second quarter valued at about $127,000. Ledyard National Bank bought a new stake in shares of Alliance Data Systems in the second quarter valued at about $187,000. First Interstate Bank lifted its holdings in shares of Alliance Data Systems by 45.2% in the second quarter. First Interstate Bank now owns 864 shares of the business services provider’s stock valued at $201,000 after purchasing an additional 269 shares in the last quarter. Finally, Excalibur Management Corp bought a new stake in shares of Alliance Data Systems in the second quarter valued at about $216,000. Institutional investors own 93.66% of the company’s stock.
ADS has been the topic of several analyst reports. Jefferies Financial Group reiterated a “buy” rating and set a $280.00 target price on shares of Alliance Data Systems in a report on Tuesday, August 7th. ValuEngine lowered Alliance Data Systems from a “sell” rating to a “strong sell” rating in a report on Thursday, August 2nd. Zacks Investment Research lowered Alliance Data Systems from a “buy” rating to a “hold” rating in a report on Thursday, August 9th. 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 report on Tuesday, August 14th. Finally, Stephens reiterated a “buy” rating and set a $288.00 target price on shares of Alliance Data Systems in a report on Friday, July 20th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and twelve have issued a buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $263.18.
Shares of NYSE ADS opened at $236.95 on Friday. The company has a market cap of $13.08 billion, a price-to-earnings ratio of 12.96, a price-to-earnings-growth ratio of 0.93 and a beta of 1.77. The company has a debt-to-equity ratio of 7.25, a quick ratio of 2.12 and a current ratio of 2.14. Alliance Data Systems Co. has a twelve month low of $192.02 and a twelve month high of $278.33.
Alliance Data Systems (NYSE:ADS) last announced its quarterly earnings results on Thursday, July 19th. The business services provider reported $5.01 earnings per share for the quarter, topping analysts’ consensus estimates of $4.64 by $0.37. The firm 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 business’s revenue was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.84 earnings per share. analysts anticipate that Alliance Data Systems Co. will post 21.6 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 19th. Shareholders of record on Tuesday, August 14th will be given a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a yield of 0.96%. The ex-dividend date is Monday, August 13th. Alliance Data Systems’s dividend payout ratio (DPR) is presently 12.47%.
Alliance Data Systems declared that its Board of Directors has authorized a share repurchase program on Monday, July 30th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.
In other Alliance Data Systems news, CFO Charles L. Horn sold 16,035 shares of the business’s stock in a transaction that occurred on 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 transaction, the chief financial officer now owns 28,688 shares of the company’s stock, valued at $6,672,255.04. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Bryan A. Pearson sold 3,424 shares of the business’s stock in a transaction that occurred on Tuesday, August 14th. The stock was 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. 2.60% of the stock is owned by insiders.
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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