Victory Capital Management Inc. raised its holdings in Alliance Data Systems Co. (NYSE:ADS) by 29.8% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 15,485 shares of the business services provider’s stock after acquiring an additional 3,556 shares during the period. Victory Capital Management Inc.’s holdings in Alliance Data Systems were worth $3,657,000 at the end of the most recent quarter.
A number of other hedge funds have also added to or reduced their stakes in the business. Principal Financial Group Inc. boosted its holdings in shares of Alliance Data Systems by 2.4% in the first quarter. Principal Financial Group Inc. now owns 75,909 shares of the business services provider’s stock valued at $16,158,000 after purchasing an additional 1,786 shares during the period. Allianz Asset Management GmbH raised its stake in Alliance Data Systems by 121.8% in the first quarter. Allianz Asset Management GmbH now owns 5,979 shares of the business services provider’s stock worth $1,273,000 after buying an additional 3,283 shares in the last quarter. Amalgamated Bank raised its stake in Alliance Data Systems by 5.7% in the second quarter. Amalgamated Bank now owns 7,509 shares of the business services provider’s stock worth $1,751,000 after buying an additional 407 shares in the last quarter. Intact Investment Management Inc. bought a new position in Alliance Data Systems in the second quarter worth approximately $238,000. Finally, Check Capital Management Inc. CA raised its stake in Alliance Data Systems by 0.3% in the second quarter. Check Capital Management Inc. CA now owns 248,074 shares of the business services provider’s stock worth $57,851,000 after buying an additional 676 shares in the last quarter. Institutional investors own 94.63% of the company’s stock.
In related news, insider Valueact Capital Master Fund, sold 675,000 shares of the company’s stock in a transaction on Tuesday, November 6th. The stock was sold at an average price of $200.00, for a total value of $135,000,000.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 2.60% of the stock is owned by corporate insiders.
Alliance Data Systems (NYSE:ADS) last issued its quarterly earnings results on Thursday, October 18th. The business services provider reported $6.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.19 by $0.07. The business had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $2.03 billion. Alliance Data Systems had a return on equity of 56.33% and a net margin of 12.11%. The business’s quarterly revenue was up 5.4% on a year-over-year basis. During the same period in the prior year, the firm posted $5.35 earnings per share. On average, analysts predict that Alliance Data Systems Co. will post 21.53 earnings per share for the current year.
Alliance Data Systems declared that its board has initiated a stock 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 purchase up to 4% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 19th. Investors of record on Wednesday, November 14th will be given a $0.57 dividend. This represents a $2.28 annualized dividend and a dividend yield of 1.16%. The ex-dividend date of this dividend is Tuesday, November 13th. Alliance Data Systems’s payout ratio is 12.47%.
A number of brokerages recently commented on ADS. SunTrust Banks reduced their price objective on shares of Alliance Data Systems to $250.00 and set a “buy” rating for the company in a research note on Monday. Barclays began coverage on shares of Alliance Data Systems in a research note on Wednesday, November 14th. They issued an “overweight” rating and a $254.00 price objective for the company. Stephens set a $247.00 price objective on shares of Alliance Data Systems and gave the stock a “hold” rating in a research note on Monday, November 12th. ValuEngine downgraded shares of Alliance Data Systems from a “sell” rating to a “strong sell” rating in a research note on Thursday, November 1st. Finally, Wells Fargo & Co reduced their price objective on shares of Alliance Data Systems from $295.00 to $275.00 and set an “outperform” rating for the company in a research note on Friday, October 19th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and thirteen have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $257.21.
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Alliance Data Systems Company Profile
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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