Alliance Data Systems Co. (NYSE:ADS) – Investment analysts at Jefferies Financial Group reduced their Q3 2018 earnings estimates for shares of Alliance Data Systems in a research report issued to clients and investors on Tuesday, October 16th. Jefferies Financial Group analyst S. Thind now expects that the business services provider will post earnings of $5.75 per share for the quarter, down from their prior estimate of $6.01. Jefferies Financial Group currently has a “Buy” rating and a $280.00 target price on the stock. Jefferies Financial Group also issued estimates for Alliance Data Systems’ Q4 2018 earnings at $6.80 EPS, FY2018 earnings at $21.14 EPS, Q1 2019 earnings at $4.44 EPS, Q2 2019 earnings at $5.21 EPS, Q4 2019 earnings at $7.64 EPS, FY2019 earnings at $23.89 EPS and FY2020 earnings at $27.57 EPS.
A number of other brokerages have also recently issued reports on ADS. Deutsche Bank set a $253.00 target price on Alliance Data Systems and gave the stock a “buy” rating in a research report on Thursday, September 20th. ValuEngine raised Alliance Data Systems from a “strong sell” rating to a “sell” rating in a research report on Thursday, July 12th. Bank of America began coverage on Alliance Data Systems in a research report on Monday, September 17th. They set a “buy” rating and a $290.00 target price for the company. Stephens cut Alliance Data Systems from an “overweight” rating to an “equal” rating and set a $288.00 target price for the company. in a research report on Monday, September 17th. They noted that the move was a valuation call. Finally, Oppenheimer reaffirmed a “hold” rating on shares of Alliance Data Systems in a research report on Friday, October 5th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and twelve have given a buy rating to the stock. Alliance Data Systems presently has an average rating of “Hold” and an average price target of $262.06.
Alliance Data Systems (NYSE:ADS) last announced its quarterly earnings results on Thursday, July 19th. The business services provider reported $5.01 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $4.64 by $0.37. The business had revenue of $1.97 billion during the quarter, compared to analysts’ expectations of $1.93 billion. Alliance Data Systems had a return on equity of 59.18% and a net margin of 11.35%. The firm’s quarterly revenue was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.84 EPS.
Several hedge funds have recently modified their holdings of ADS. Pittenger & Anderson Inc. acquired a new position in shares of Alliance Data Systems during the second quarter worth approximately $117,000. Piedmont Investment Advisors LLC acquired a new position in shares of Alliance Data Systems during the second quarter worth approximately $127,000. Ledyard National Bank acquired a new position in shares of Alliance Data Systems during the second quarter worth approximately $187,000. First Interstate Bank lifted its holdings in shares of Alliance Data Systems by 45.2% during the second 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, grace capital acquired a new position in shares of Alliance Data Systems during the second quarter worth approximately $210,000. Institutional investors own 93.38% of the company’s stock.
In other news, CFO Charles L. Horn sold 16,035 shares of the company’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 transaction of $3,729,420.30. Following the completion of the transaction, the chief financial officer now directly owns 28,688 shares in the company, valued at $6,672,255.04. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Bryan A. Pearson sold 3,424 shares of the company’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. 2.60% of the stock is owned by insiders.
Alliance Data Systems declared that its Board of Directors has approved a share repurchase 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 repurchase up to 4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.
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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