Seven Eight Capital LP purchased a new position in shares of Alliance Data Systems Co. (NYSE:ADS) in the 3rd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 2,400 shares of the business services provider’s stock, valued at approximately $567,000.
Several other institutional investors and hedge funds also recently added to or reduced their stakes in the company. ValueAct Holdings L.P. boosted its stake in Alliance Data Systems by 3.5% during the 2nd quarter. ValueAct Holdings L.P. now owns 6,082,646 shares of the business services provider’s stock valued at $1,418,473,000 after purchasing an additional 205,246 shares during the period. Dimensional Fund Advisors LP boosted its stake in Alliance Data Systems by 3.5% during the 2nd quarter. Dimensional Fund Advisors LP now owns 258,065 shares of the business services provider’s stock valued at $60,186,000 after purchasing an additional 8,800 shares during the period. Schroder Investment Management Group boosted its stake in Alliance Data Systems by 142.8% during the 2nd quarter. Schroder Investment Management Group now owns 84,743 shares of the business services provider’s stock valued at $19,962,000 after purchasing an additional 49,845 shares during the period. BlackRock Inc. boosted its stake in Alliance Data Systems by 1.6% during the 2nd quarter. BlackRock Inc. now owns 3,164,367 shares of the business services provider’s stock valued at $737,931,000 after purchasing an additional 48,926 shares during the period. Finally, GHP Investment Advisors Inc. boosted its stake in Alliance Data Systems by 9.2% during the 2nd quarter. GHP Investment Advisors Inc. now owns 3,449 shares of the business services provider’s stock valued at $804,000 after purchasing an additional 290 shares during the period. Institutional investors own 93.69% of the company’s stock.
Alliance Data Systems stock opened at $199.05 on Friday. The company has a quick ratio of 2.12, a current ratio of 1.10 and a debt-to-equity ratio of 2.53. The company has a market capitalization of $10.94 billion, a price-to-earnings ratio of 9.47, a PEG ratio of 0.76 and a beta of 1.76. Alliance Data Systems Co. has a 12 month low of $192.02 and a 12 month high of $278.33.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 19th. Shareholders of record on Wednesday, November 14th will be issued a $0.57 dividend. The ex-dividend date is Tuesday, November 13th. This represents a $2.28 annualized dividend and a yield of 1.15%. Alliance Data Systems’s dividend payout ratio (DPR) is 12.47%.
Alliance Data Systems declared that its board has approved a stock repurchase plan on Monday, July 30th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the business services provider to buy up to 4% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.
Several analysts recently weighed in on ADS shares. Zacks Investment Research upgraded Alliance Data Systems from a “hold” rating to a “buy” rating and set a $258.00 target price for the company in a research note on Wednesday, August 8th. Jefferies Financial Group restated 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 restated 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 for the company. Finally, Deutsche Bank set a $253.00 target price on Alliance Data Systems and gave the company a “buy” rating in a research note on Thursday, September 20th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and thirteen have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $262.74.
In other Alliance Data Systems news, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 2.60% of the company’s stock.
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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