Alliance Data Systems Co. (ADS) Shares Bought by FSI Group LLC

FSI Group LLC grew its holdings in Alliance Data Systems Co. (NYSE:ADS) by 46.3% during the third quarter, HoldingsChannel reports. The firm owned 35,122 shares of the business services provider’s stock after acquiring an additional 11,107 shares during the period. Alliance Data Systems comprises about 6.0% of FSI Group LLC’s investment portfolio, making the stock its 6th biggest holding. FSI Group LLC’s holdings in Alliance Data Systems were worth $8,294,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. ValueAct Holdings L.P. lifted its stake in Alliance Data Systems by 3.5% in the 2nd quarter. ValueAct Holdings L.P. now owns 6,082,646 shares of the business services provider’s stock worth $1,418,473,000 after purchasing an additional 205,246 shares in the last quarter. BlackRock Inc. lifted its stake in Alliance Data Systems by 1.6% in the 2nd quarter. BlackRock Inc. now owns 3,164,367 shares of the business services provider’s stock worth $737,931,000 after purchasing an additional 48,926 shares in the last quarter. FMR LLC lifted its stake in Alliance Data Systems by 45.3% in the 2nd quarter. FMR LLC now owns 2,595,591 shares of the business services provider’s stock worth $605,293,000 after purchasing an additional 809,427 shares in the last quarter. Parnassus Investments CA lifted its stake in Alliance Data Systems by 42.3% in the 2nd quarter. Parnassus Investments CA now owns 1,245,000 shares of the business services provider’s stock worth $290,334,000 after purchasing an additional 370,000 shares in the last quarter. Finally, Bank of Montreal Can lifted its stake in Alliance Data Systems by 33.3% in the 2nd quarter. Bank of Montreal Can now owns 768,119 shares of the business services provider’s stock worth $179,126,000 after purchasing an additional 192,056 shares in the last quarter. 94.03% of the stock is currently owned by institutional investors and hedge funds.

A number of research analysts have weighed in on ADS shares. Stephens lowered shares of Alliance Data Systems from an “overweight” rating to an “equal” rating and set a $288.00 target price on the stock. in a research note on Monday, September 17th. They noted that the move was a valuation call. Bank of America started coverage on shares of Alliance Data Systems in a research note on Monday, September 17th. They issued a “buy” rating and a $290.00 target price on the stock. Deutsche Bank set a $253.00 target price on shares of Alliance Data Systems and gave the stock a “buy” rating in a research note on Thursday, September 20th. Oppenheimer reissued a “hold” rating on shares of Alliance Data Systems in a research note on Friday, October 5th. Finally, JPMorgan Chase & Co. raised shares of Alliance Data Systems from a “neutral” rating to an “overweight” rating and set a $281.00 target price on the stock in a research note on Tuesday, August 14th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and thirteen have issued a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $262.74.

ADS stock opened at $212.92 on Friday. The company has a market cap of $11.40 billion, a PE ratio of 9.88, a PEG ratio of 0.79 and a beta of 1.71. The company has a debt-to-equity ratio of 2.53, a quick ratio of 2.12 and a current ratio of 1.10. Alliance Data Systems Co. has a one year low of $192.02 and a one year high of $278.33.

Alliance Data Systems (NYSE:ADS) last released its quarterly earnings results on Thursday, October 18th. The business services provider reported $6.26 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $6.19 by $0.07. The firm had revenue of $2.02 billion for the quarter, compared to analyst estimates of $2.03 billion. Alliance Data Systems had a net margin of 12.11% and a return on equity of 56.33%. The business’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $5.35 EPS. Analysts forecast that Alliance Data Systems Co. will post 21.53 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 19th. Stockholders of record on Wednesday, November 14th will be given a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a dividend yield of 1.07%. The ex-dividend date of this dividend is Tuesday, November 13th. Alliance Data Systems’s payout ratio is presently 12.47%.

Alliance Data Systems announced that its Board of Directors has initiated a share repurchase plan on Monday, July 30th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the business services provider to buy up to 4% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

In other Alliance Data Systems news, 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 sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Valueact Capital Master Fund, sold 675,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 6th. The shares were sold at an average price of $200.00, for a total value of $135,000,000.00. The disclosure for this sale can be found here. 2.60% of the stock is currently owned by insiders.

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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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Want to see what other hedge funds are holding ADS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Alliance Data Systems Co. (NYSE:ADS).

Institutional Ownership by Quarter for Alliance Data Systems (NYSE:ADS)

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