Alliance Data Systems Co. (NYSE:ADS) declared a quarterly dividend on Thursday, October 18th, RTT News reports. Investors of record on Wednesday, November 14th will be given a dividend of 0.57 per share by the business services provider on Wednesday, December 19th. This represents a $2.28 annualized dividend and a yield of 1.02%.
Alliance Data Systems has a payout ratio of 10.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Alliance Data Systems to earn $24.58 per share next year, which means the company should continue to be able to cover its $2.28 annual dividend with an expected future payout ratio of 9.3%.
ADS opened at $223.11 on Friday. Alliance Data Systems has a 12-month low of $192.02 and a 12-month high of $278.33. The company has a current ratio of 2.14, a quick ratio of 2.12 and a debt-to-equity ratio of 7.25. The stock has a market cap of $11.62 billion, a P/E ratio of 12.21, a PEG ratio of 0.79 and a beta of 1.76.
In other Alliance Data Systems news, CFO Charles L. Horn sold 16,035 shares of the company’s stock in a transaction dated 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 sale, the chief financial officer now owns 28,688 shares in the company, valued at approximately $6,672,255.04. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Bryan A. Pearson sold 3,424 shares of the company’s stock in a transaction dated 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 corporate insiders.
Several equities analysts recently issued reports on ADS shares. Zacks Investment Research raised Alliance Data Systems from a “hold” rating to a “buy” rating and set a $258.00 target price on the stock in a research note on Wednesday, August 8th. Jefferies Financial Group reissued a “buy” rating and set a $280.00 target price on shares of Alliance Data Systems in a research note on Tuesday, August 7th. Stephens reissued a “buy” rating and set a $288.00 target price on shares of Alliance Data Systems in a research note on Friday, July 20th. Bank of America started coverage on Alliance Data Systems in a research note on Monday, September 17th. They set a “buy” rating and a $290.00 target price on the stock. Finally, Deutsche Bank set a $253.00 target price on Alliance Data Systems and gave the stock a “buy” rating in a research note on Thursday, September 20th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating and twelve have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $262.06.
Alliance Data Systems declared that its board has initiated a stock buyback program on Monday, July 30th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the business services provider to reacquire up to 4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.
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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