Alliance Data Systems Co. (NYSE:ADS) announced a quarterly dividend on Thursday, July 18th, RTT News reports. Shareholders of record on Wednesday, September 4th will be paid a dividend of 0.63 per share by the business services provider on Thursday, September 26th. This represents a $2.52 dividend on an annualized basis and a yield of 1.66%. The ex-dividend date is Tuesday, September 3rd.
Alliance Data Systems has a payout ratio of 11.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Alliance Data Systems to earn $22.97 per share next year, which means the company should continue to be able to cover its $2.52 annual dividend with an expected future payout ratio of 11.0%.
Shares of Alliance Data Systems stock opened at $151.56 on Friday. The company has a debt-to-equity ratio of 5.38, a quick ratio of 2.53 and a current ratio of 1.72. The stock’s 50-day simple moving average is $142.46. Alliance Data Systems has a 1-year low of $133.56 and a 1-year high of $250.27. The firm has a market cap of $8.28 billion, a P/E ratio of 7.89, a P/E/G ratio of 0.52 and a beta of 1.63.
Alliance Data Systems (NYSE:ADS) last issued its quarterly earnings results on Thursday, July 18th. The business services provider reported $3.66 earnings per share for the quarter, missing the Zacks’ 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 quarter in the previous year, the business posted $5.01 earnings per share. The business’s revenue was down 3.5% on a year-over-year basis. Analysts forecast that Alliance Data Systems will post 18.64 earnings per share for the current fiscal year.
Alliance Data Systems announced that its Board of Directors has approved a stock buyback plan on Tuesday, July 9th that permits the company to repurchase $1.10 billion in shares. This repurchase authorization permits the business services provider to repurchase up to 14.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.
ADS has been the subject of several research reports. Deutsche Bank raised their target price on Rockwell Automation from $173.00 to $186.00 and gave the company a “hold” rating in a research note on Friday, April 26th. Stephens restated a “hold” rating and issued a $36.00 target price on shares of Allegiance Bancshares in a research note on Monday, April 29th. BMO Capital Markets set a $32.00 target price on Axalta Coating Systems and gave the company a “hold” rating in a research note on Friday, April 26th. Oppenheimer initiated coverage on Pareteum in a research note on Friday, April 26th. They issued an “outperform” rating and a $7.00 target price for the company. Finally, Zacks Investment Research upgraded Triple-S Management from a “hold” rating to a “buy” rating and set a $26.00 target price for the company in a research note on Monday, April 29th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and eight have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $218.92.
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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