Sei Investments Co. boosted its stake in Alliance Data Systems Co. (NYSE:ADS) by 68.7% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,964 shares of the business services provider’s stock after buying an additional 800 shares during the period. Sei Investments Co.’s holdings in Alliance Data Systems were worth $458,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds also recently made changes to their positions in the stock. Victory Capital Management Inc. grew its position in Alliance Data Systems by 31.5% in the first quarter. Victory Capital Management Inc. now owns 10,616 shares of the business services provider’s stock worth $2,260,000 after acquiring an additional 2,545 shares in the last quarter. State of Wisconsin Investment Board grew its position in Alliance Data Systems by 7.9% in the first quarter. State of Wisconsin Investment Board now owns 59,377 shares of the business services provider’s stock worth $12,639,000 after acquiring an additional 4,338 shares in the last quarter. ING Groep NV grew its position in Alliance Data Systems by 21.6% in the first quarter. ING Groep NV now owns 2,030 shares of the business services provider’s stock worth $432,000 after acquiring an additional 360 shares in the last quarter. US Bancorp DE lifted its stake in Alliance Data Systems by 2.0% in the first quarter. US Bancorp DE now owns 19,392 shares of the business services provider’s stock worth $4,128,000 after purchasing an additional 382 shares during the last quarter. Finally, Korea Investment CORP lifted its stake in Alliance Data Systems by 347.6% in the first quarter. Korea Investment CORP now owns 31,281 shares of the business services provider’s stock worth $6,658,000 after purchasing an additional 24,293 shares during the last quarter. Hedge funds and other institutional investors own 93.38% of the company’s stock.
Several brokerages have issued reports on ADS. Deutsche Bank set a $253.00 price objective on shares of Alliance Data Systems and gave the stock a “buy” rating in a research note on Thursday, September 20th. ValuEngine raised shares of Alliance Data Systems from a “strong sell” rating to a “sell” rating in a research note on Thursday, July 12th. Bank of America began coverage on shares of Alliance Data Systems in a research note on Monday, September 17th. They issued a “buy” rating and a $290.00 price objective for the company. Stephens downgraded shares of Alliance Data Systems from an “overweight” rating to an “equal” rating and set a $288.00 price objective for the company. in a research note on Monday, September 17th. They noted that the move was a valuation call. Finally, Oppenheimer reissued a “hold” rating on shares of Alliance Data Systems in a research note on Friday. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and twelve have assigned a buy rating to the company. Alliance Data Systems presently has an average rating of “Hold” and an average price target of $262.06.
Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings results on Thursday, July 19th. The business services provider reported $5.01 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $4.64 by $0.37. Alliance Data Systems had a net margin of 11.35% and a return on equity of 59.18%. The firm had revenue of $1.97 billion during the quarter, compared to the consensus estimate of $1.93 billion. During the same quarter in the previous year, the firm posted $3.84 earnings per share. The company’s revenue was up 8.1% on a year-over-year basis. On average, sell-side analysts predict that Alliance Data Systems Co. will post 21.6 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 19th. Investors of record on Tuesday, August 14th were issued a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a yield of 0.99%. The ex-dividend date of this dividend was Monday, August 13th. Alliance Data Systems’s payout ratio is 12.47%.
Alliance Data Systems declared that its Board of Directors has initiated a stock buyback plan 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 purchase up to 4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.
In related news, EVP Bryan A. Pearson sold 3,424 shares of Alliance Data Systems stock in a transaction that occurred on Tuesday, August 14th. The shares were sold at an average price of $231.67, for a total transaction of $793,238.08. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Charles L. Horn sold 16,035 shares of Alliance Data Systems stock in a transaction that occurred on Tuesday, July 24th. The shares were 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 directly owns 28,688 shares in the company, valued at $6,672,255.04. 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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