Stock analysts at Bank of America initiated coverage on shares of Alliance Data Systems (NYSE:ADS) in a research note issued on Monday, The Fly reports. The firm set a “buy” rating and a $290.00 price target on the business services provider’s stock. Bank of America’s target price would suggest a potential upside of 20.09% from the stock’s previous close.

ADS has been the subject of a number of other research reports. Wolfe Research began coverage on Alliance Data Systems in a report on Tuesday, July 17th. They set an “outperform” rating for the company. Zacks Investment Research raised Alliance Data Systems from a “hold” rating to a “buy” rating and set a $261.00 target price for the company in a report on Wednesday, July 25th. JPMorgan Chase & Co. reaffirmed a “hold” rating on shares of Alliance Data Systems in a report on Wednesday, July 18th. ValuEngine lowered Alliance Data Systems from a “sell” rating to a “strong sell” rating in a report on Friday, June 1st. Finally, Oppenheimer reaffirmed a “hold” rating on shares of Alliance Data Systems in a report on Thursday, July 19th. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $264.67.

ADS stock opened at $241.48 on Monday. The company has a quick ratio of 2.12, a current ratio of 2.14 and a debt-to-equity ratio of 7.25. The stock has a market cap of $13.38 billion, a price-to-earnings ratio of 13.21, a P/E/G ratio of 0.95 and a beta of 1.77. Alliance Data Systems has a twelve month low of $192.02 and a twelve month high of $278.33.

Alliance Data Systems (NYSE:ADS) last posted its earnings results on Thursday, July 19th. The business services provider reported $5.01 earnings per share for the quarter, beating the Zacks’ consensus estimate of $4.64 by $0.37. The business had revenue of $1.97 billion during the quarter, compared to analyst estimates 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 quarterly revenue was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.84 EPS. sell-side analysts expect that Alliance Data Systems will post 21.6 EPS for the current fiscal year.

Alliance Data Systems declared that its Board of Directors has approved a stock buyback program on Monday, July 30th that allows the company to buyback $500.00 million in 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 a sign that the company’s management believes its shares are undervalued.

In related 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 value of $3,729,420.30. Following the completion of the sale, the chief financial officer now owns 28,688 shares in the company, valued at approximately $6,672,255.04. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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. Insiders own 2.60% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. Pittenger & Anderson Inc. bought a new stake in Alliance Data Systems in the 2nd quarter worth approximately $117,000. Piedmont Investment Advisors LLC bought a new stake in Alliance Data Systems in the 2nd quarter worth approximately $127,000. Ledyard National Bank bought a new stake in Alliance Data Systems in the 2nd quarter worth approximately $187,000. First Interstate Bank lifted its position in Alliance Data Systems by 45.2% in the 2nd quarter. First Interstate Bank now owns 864 shares of the business services provider’s stock worth $201,000 after buying an additional 269 shares during the last quarter. Finally, Smithfield Trust Co. lifted its position in Alliance Data Systems by 64.0% in the 1st quarter. Smithfield Trust Co. now owns 989 shares of the business services provider’s stock worth $210,000 after buying an additional 386 shares during the last quarter. Institutional investors own 93.53% of the company’s stock.

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.

Recommended Story: How to Invest in an Index Fund

The Fly

Analyst Recommendations for Alliance Data Systems (NYSE:ADS)

Receive News & Ratings for Alliance Data Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliance Data Systems and related companies with MarketBeat.com's FREE daily email newsletter.