Arbor Wealth Management LLC Has $3.45 Million Stock Position in Alliance Data Systems Co. (NYSE:ADS)

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Arbor Wealth Management LLC reduced its position in shares of Alliance Data Systems Co. (NYSE:ADS) by 1.7% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 24,586 shares of the business services provider’s stock after selling 429 shares during the period. Alliance Data Systems comprises about 1.9% of Arbor Wealth Management LLC’s investment portfolio, making the stock its 23rd biggest position. Arbor Wealth Management LLC’s holdings in Alliance Data Systems were worth $3,445,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the stock. Advisors Asset Management Inc. boosted its position in Alliance Data Systems by 36.4% during the 1st quarter. Advisors Asset Management Inc. now owns 690 shares of the business services provider’s stock worth $121,000 after purchasing an additional 184 shares during the period. Financial Architects Inc acquired a new stake in Alliance Data Systems during the first quarter worth about $123,000. Parallel Advisors LLC raised its stake in Alliance Data Systems by 21.7% during the first quarter. Parallel Advisors LLC now owns 747 shares of the business services provider’s stock worth $131,000 after acquiring an additional 133 shares during the period. Financial Advocates Investment Management acquired a new stake in Alliance Data Systems during the fourth quarter worth about $225,000. Finally, Regentatlantic Capital LLC acquired a new stake in Alliance Data Systems during the first quarter worth about $234,000. 91.96% of the stock is owned by hedge funds and other institutional investors.

In related news, CFO Timothy P. King sold 2,600 shares of the stock in a transaction that occurred on Tuesday, July 30th. The shares were 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 Securities & Exchange Commission, which can be accessed through this link. 2.80% of the stock is owned by corporate insiders.

ADS has been the topic of several research reports. Stephens upgraded shares of Alliance Data Systems from an “underweight” rating to an “equal weight” rating and set a $160.00 price objective on the stock in a research note on Monday, April 29th. Oppenheimer reiterated a “hold” rating on shares of Alliance Data Systems in a research note on Friday, April 26th. William Blair reiterated a “buy” rating on shares of Alliance Data Systems in a research note on Monday, July 15th. Zacks Investment Research lowered shares of Alliance Data Systems from a “hold” rating to a “sell” rating in a research note on Monday, April 29th. Finally, Buckingham Research reiterated a “neutral” rating and set a $169.00 price objective on shares of Alliance Data Systems in a research note on Monday, July 22nd. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the company. Alliance Data Systems presently has an average rating of “Hold” and a consensus target price of $197.90.

Alliance Data Systems stock opened at $152.50 on Friday. The firm has a 50 day simple moving average of $151.08 and a 200-day simple moving average of $157.77. The company has a debt-to-equity ratio of 7.16, a current ratio of 2.67 and a quick ratio of 2.64. The stock has a market capitalization of $7.67 billion, a PE ratio of 7.07, a price-to-earnings-growth ratio of 0.55 and a beta of 1.63. Alliance Data Systems Co. has a 12-month low of $133.56 and a 12-month high of $250.27.

Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings data 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). The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.36 billion. Alliance Data Systems had a net margin of 13.01% and a return on equity of 46.72%. The company’s revenue was down 3.5% on a year-over-year basis. During the same quarter last year, the business earned $5.01 earnings per share. On average, analysts forecast that Alliance Data Systems Co. will post 18.92 earnings per share for the current fiscal year.

Alliance Data Systems announced that its board has approved a stock repurchase plan on Tuesday, July 9th that allows the company to buyback $1.10 billion in shares. This buyback authorization allows the business services provider to purchase up to 14.2% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 26th. Investors of record on Wednesday, September 4th will be paid a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a yield of 1.65%. The ex-dividend date is Tuesday, September 3rd. Alliance Data Systems’s dividend payout ratio is presently 11.69%.

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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Institutional Ownership by Quarter for Alliance Data Systems (NYSE:ADS)

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