Alliance Data Systems Corporation on Focus After Bearish Options Activity

 Alliance Data Systems Corporation on Focus After Bearish Options Activity

In today’s session Alliance Data Systems Corporation (ADS) recorded an unusually high (354) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious ADS decrease. With 354 contracts traded and 6484 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: ADS161021P00200000 closed last at: $3.1 or 13.9% down. About 133,570 shares traded hands. Alliance Data Systems Corporation (NYSE:ADS) has declined 0.28% since March 3, 2016 and is downtrending. It has underperformed by 8.62% the S&P500.

Analysts await Alliance Data Systems Corporation (NYSE:ADS) to report earnings on October, 27. They expect $4.19 earnings per share, up 12.33% or $0.46 from last year’s $3.73 per share. ADS’s profit will be $249.42M for 12.73 P/E if the $4.19 EPS becomes a reality. After $3.28 actual earnings per share reported by Alliance Data Systems Corporation for the previous quarter, Wall Street now forecasts 27.74% EPS growth.

Alliance Data Systems Corporation (NYSE:ADS) Ratings Coverage

Out of 21 analysts covering Alliance Data Systems (NYSE:ADS), 14 rate it a “Buy”, 1 “Sell”, while 6 “Hold”. This means 67% are positive. Alliance Data Systems has been the topic of 29 analyst reports since August 9, 2015 according to StockzIntelligence Inc. The stock of Alliance Data Systems Corporation (NYSE:ADS) has “Neutral” rating given on Tuesday, April 26 by Susquehanna. The firm has “Hold” rating by Stifel Nicolaus given on Monday, July 18. The firm earned “Buy” rating on Friday, February 12 by Jefferies. Wedbush initiated Alliance Data Systems Corporation (NYSE:ADS) on Friday, September 9 with “Neutral” rating. On Thursday, December 17 the stock rating was initiated by Sterne Agee CRT with “Buy”. The company was upgraded on Wednesday, November 25 by Piper Jaffray. BMO Capital Markets downgraded the shares of ADS in a report on Friday, July 22 to “Market Perform” rating. The firm has “Buy” rating given on Thursday, August 20 by Stifel Nicolaus. The rating was downgraded by Credit Suisse on Wednesday, August 17 to “Underperform”. The rating was initiated by Atlantic Securities on Wednesday, October 5 with “Overweight”.

According to Zacks Investment Research, “Alliance Data Systems Corporation is a leading provider of transaction services, credit services and marketing services to retail companies in North America. They focus on facilitating and managing electronic transactions between clients and their customers through multiple distribution channels including in-store, catalog and the Internet. Their credit and marketing services assist clients in identifying and acquiring new customers, as well as helping to increase the loyalty and profitability of their existing customers.”

Insitutional Activity: The institutional sentiment decreased to 0.87 in 2016 Q2. Its down 0.15, from 1.02 in 2016Q1. The ratio worsened, as 68 funds sold all Alliance Data Systems Corporation shares owned while 172 reduced positions. 60 funds bought stakes while 149 increased positions. They now own 52.14 million shares or 5.27% less from 55.04 million shares in 2016Q1.
Bremer Tru National Association accumulated 0.09% or 1,713 shares. The California-based Inv House Ltd Liability Corporation has invested 0.75% in Alliance Data Systems Corporation (NYSE:ADS). Ahl Prtnrs Limited Liability Partnership owns 9,751 shares or 0.1% of their US portfolio. Paloma Prns Mngmt accumulated 0.01% or 3,961 shares. Lodestar Invest Counsel Ltd Liability Il accumulated 0.06% or 2,163 shares. The Montana-based First Interstate State Bank has invested 0.03% in Alliance Data Systems Corporation (NYSE:ADS). Schwab Charles Investment Management accumulated 0.04% or 163,000 shares. Van Den Berg Management I, a Texas-based fund reported 38,761 shares. Department Mb Natl Bank N A has invested 0% of its portfolio in Alliance Data Systems Corporation (NYSE:ADS). Moreover, Bnp Paribas Invest Prtnrs has 0.16% invested in Alliance Data Systems Corporation (NYSE:ADS) for 95,101 shares. Veritas Inv Mgmt Ltd Liability Partnership has 0.04% invested in the company for 1,146 shares. Texas Permanent School Fund has 19,123 shares for 0.05% of their US portfolio. Macquarie Grp Ltd holds 0.01% of its portfolio in Alliance Data Systems Corporation (NYSE:ADS) for 37,079 shares. Synovus Corp accumulated 130 shares or 0% of the stock. Hartford Investment owns 14,170 shares or 0.06% of their US portfolio.

Insider Transactions: Since June 1, 2016, the stock had 0 insider purchases, and 1 sale for $78,482 net activity. ANDERSON BRUCE K sold $78,482 worth of Alliance Data Systems Corporation (NYSE:ADS) on Wednesday, June 1.

Alliance Data Systems Corporation is a well-known provider of data-driven marketing and loyalty solutions serving consumer businesses in a range of industries. The company has a market cap of $12.70 billion. The Firm 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. It has a 26.63 P/E ratio.

ADS Company Profile

Alliance Data Systems Corporation, incorporated on February 23, 1995, is a well-known provider of data-driven marketing and loyalty solutions serving consumer businesses in a range of industries. The Firm 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. The Firm operates through three divisions: LoyaltyOne, which provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty; Epsilon, which provides end-to-end, integrated marketing solutions, and Card Services, which provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company’s private label and co-brand retail credit card programs. The Company’s client base is diversified across a range of end-markets, including financial services, specialty retail, grocery and drugstore chains, petroleum retail, automotive, hospitality and travel, telecommunications, insurance and healthcare.

More notable recent Alliance Data Systems Corporation (NYSE:ADS) news were published by: Nasdaq.com which released: “Alliance Data Systems Shares Cross Above 200 DMA” on October 03, 2016, also Seekingalpha.com with their article: “Alliance Data Systems Corp.: Quality At A Reasonable Price?” published on August 25, 2016, Valuewalk.com published: “Alliance Data Systems Corporation (ADS) – Citron Short Thesis” on August 19, 2016. More interesting news about Alliance Data Systems Corporation (NYSE:ADS) were released by: Nasdaq.com and their article: “Alliance Data Systems Corporation Q2 Earnings Climb 5%” published on July 21, 2016 as well as Benzinga.com‘s news article titled: “Alliance Data Closer To A Card Lender Than Tech Company Says Credit Suisse …” with publication date: August 17, 2016.

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