State Treasurer State of Michigan Decreases Stake in Alliance Data Systems Co. (NYSE:ADS)
State Treasurer State of Michigan reduced its stake in Alliance Data Systems Co. (NYSE:ADS) by 18.2% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 10,803 shares of the business services provider’s stock after selling 2,400 shares during the quarter. State Treasurer State of Michigan’s holdings in Alliance Data Systems were worth $1,514,000 as of its most recent SEC filing.
Several other institutional investors also recently made changes to their positions in the stock. Financial Advisors Network Inc. raised its position in Alliance Data Systems by 43.2% during the 1st quarter. Financial Advisors Network Inc. now owns 6,552 shares of the business services provider’s stock worth $901,000 after buying an additional 1,977 shares during the last quarter. Nicollet Investment Management Inc. purchased a new position in Alliance Data Systems during the 1st quarter worth approximately $436,000. CIBC World Markets Inc. raised its position in Alliance Data Systems by 11.0% during the 1st quarter. CIBC World Markets Inc. now owns 1,717 shares of the business services provider’s stock worth $300,000 after buying an additional 170 shares during the last quarter. Emory University raised its position in Alliance Data Systems by 17.2% during the 1st quarter. Emory University now owns 11,142 shares of the business services provider’s stock worth $1,950,000 after buying an additional 1,633 shares during the last quarter. Finally, Candriam Luxembourg S.C.A. raised its position in Alliance Data Systems by 27.8% during the 1st quarter. Candriam Luxembourg S.C.A. now owns 28,784 shares of the business services provider’s stock worth $5,037,000 after buying an additional 6,258 shares during the last quarter. 91.96% of the stock is owned by hedge funds and other institutional investors.
In other news, CFO Timothy P. King sold 2,600 shares of Alliance Data Systems stock in a transaction on Tuesday, July 30th. The stock was sold at an average price of $156.30, for a total transaction of $406,380.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. 2.80% of the stock is owned by insiders.
Alliance Data Systems (NYSE:ADS) last announced its earnings results on Thursday, July 18th. The business services provider reported $3.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.08 by ($0.42). Alliance Data Systems had a return on equity of 46.72% and a net margin of 13.01%. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same period last year, the firm earned $5.01 EPS. The company’s revenue for the quarter was down 3.5% compared to the same quarter last year. As a group, equities research analysts forecast that Alliance Data Systems Co. will post 18.92 EPS for the current fiscal year.
Alliance Data Systems declared that its board has approved a stock repurchase program on Tuesday, July 9th that authorizes the company to buyback $1.10 billion in outstanding shares. This buyback authorization authorizes the business services provider to buy up to 14.2% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.
The business also recently declared a quarterly dividend, which will be paid on Thursday, September 26th. Stockholders of record on Wednesday, September 4th will be issued a dividend of $0.63 per share. The ex-dividend date is Tuesday, September 3rd. This represents a $2.52 annualized dividend and a dividend yield of 1.64%. Alliance Data Systems’s dividend payout ratio is presently 11.69%.
A number of research firms have issued reports on ADS. BMO Capital Markets reduced their price target on shares of Alliance Data Systems from $183.00 to $173.00 and set a “market perform” rating for the company in a research report on Friday, April 26th. They noted that the move was a valuation call. Zacks Investment Research lowered shares of Alliance Data Systems from a “hold” rating to a “sell” rating in a research report on Monday, April 29th. Robert W. Baird set a $173.00 price target on shares of Alliance Data Systems and gave the stock a “hold” rating in a research report on Friday, July 19th. Stephens raised shares of Alliance Data Systems from an “underweight” rating to an “equal weight” rating and set a $160.00 price target for the company in a research report on Monday, April 29th. Finally, Buckingham Research reissued a “neutral” rating and set a $169.00 price target on shares of Alliance Data Systems in a research report on Monday, July 22nd. Three analysts have rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $205.45.
Alliance Data Systems 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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