Home Sectors Financial Services Present Change: Alliance Data Systems Corporation (NYSE: ADS)

Present Change: Alliance Data Systems Corporation (NYSE: ADS)


Alliance Data Systems Corporation is part of the financial services sector and is in the credit services industry. The company CEO is Edward J. Heffernan. Alliance Data Systems Corp provides marketing, loyalty, and credit solutions in the United States, Canada, and other countries. The business activity of the group is functioned through LoyaltyOne, Epsilon, and Card service segment.

Previous Intraday Trading Performance:

The ADS stock showed a previous change of 2.95% with an open at 177.04 and a close of 180.93. It reached an intraday high of 182.95 and a low of 177.04.

SeekingAlpha:  Lots of M&A news on the radar


The stock has a market cap of $9.6b with 53.0m shares outstanding, of which the float is 49.6m shares. Trading volume reached 684,384 shares compared to its average volume of 566,366 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Alliance Data Systems Corporation shares returned 1.45% and in the past 30 trading days it returned 4.95%. Over three months, it changed 8.34%. In one year it has changed -13.06% and within that year its 52-week high was 250.27 and its 52-week low was 142.58. ADS stock is 26.90% above its 52 Week Low.

Our calculations show a 200 day moving average of 200.33 and a 50 day moving average of 172.40. Currently ADS stock is trading -9.69% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

PR Newswire:  Alliance Data Enters Into Definitive Agreement To Sell Its Epsilon® Business To Publicis Groupe For $4.4 Billion


The last annual fiscal EPS for the company was reported at 17.51 that ended on 31st of December 2018, which according to the previous close, that is a PE of 10.33. Based on 4 analyst estimates, the consensus EPS for the next quarter is 3.75. The TTM EPS is 21.71, which comes to a TTM PE of 8.33. Historically, the PE high was 40.40 and the PE low was 8.33. ADS stock has set a new PE low record!

The dividend per share is currently 2.52, which is a dividend yield of 1.39%. Also, the payout ratio is 11.61%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 437.96, which means it is possibly undervalued and has a margin of safety of 58.69%

Indicators to Watch:

Based on the latest filings, there is 6.30% of insider ownership and 145.60% of institutional ownership. Short-interest is 2,392,336, which is 4.51% of shares outstanding. The short-interest ratio or days-to-cover ratio is 4.17. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.78

PR Newswire:  Alliance Data Enters Into Definitive Agreement To Sell Its Epsilon® Business To Publicis Groupe For $4.4 Billion

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 46.00%, return on assets is 3.15%, profit margin is 13.53%, price-to-sales is 1.58 and price-to-book is 4.11.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 4  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 2  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.