Alliance Data Systems Corporation (NYSE:ADS) Relative Strength Index (RSI) is 60.93, with weekly volatility at 3.26% and ATR at 5.26. The ADS stock’s 52-week price range has touched low of $38.88 and a $127.99 high. Intraday shares traded counted 0.77 million, which was 9.67% higher than its 30-day average trading volume of 848.98K. Its shares traded higher over the last trading session, gaining 0.13% on 06/02/21. The shares fell to a low of $123.51 before closing at $124.72. ADS’s previous close was $124.56 while the outstanding shares total 49.70M. The firm has a beta of 2.63, a 12-month trailing P/E ratio of 11.07, and a growth ratio of 0.65.
Investors have identified the Credit Services company Alliance Data Systems Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $6.24 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Alliance Data Systems Corporation (ADS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ADS, the company has in raw cash 2.86 billion on their books with 8.75 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 18.3 billion total, with 10.74 billion as their total liabilities.
ADS were able to record 505.0 million as free cash flow during the 07/22/2021 quarter of the year, this saw their quarterly net cash flow reduce by -216.3 million. In cash movements, the company had a total of 517.2 million as operating cash flow.
Potential earnings growth for Alliance Data Systems Corporation (ADS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/22/2021 quarter of the year, Alliance Data Systems Corporation recorded a total of 1.08 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -27.37% coming in sequential stages and their sales for the 07/22/2021 quarter reducing by -2.3%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 497.5 million trying to sell their products during the last quarter, with the result yielding a gross income of 587.4 million. This allows shareholders to hold on to 49.70M with the recently reported earning now reading 5.76 cents per share. This is a figure that compared to analyst’s prediction for their 07/22/2021 (6.15 cents a share).
Having a look at the company’s valuation, the company is expected to record 13.77 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ADS sounds very interesting.
Is the stock of ADS attractive?
In related news, SVP, Chief Acctg. Officer, Santillan Laura sold 1,162 shares of the company’s stock in a transaction that recorded on May 06. The sale was performed at an average price of 125.00, for a total value of 145,250. As the sale deal closes, the SVP, Chief Acctg. Officer, Santillan Laura now sold 1,703 shares of the company’s stock, valued at 170,300. Also, SVP and Treasurer, Chesnut John Jeffrey sold 1,000 shares of the company’s stock in a deal that was recorded on Mar 01. The shares were price at an average price of 100.00 per share, with a total market value of 100,000. Following this completion of acquisition, the Director, Gerspach John C now holds 6,000 shares of the company’s stock, valued at 410,753. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.80%.
10 out of 19 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Alliance Data Systems Corporation. 0 analysts has assigned a Sell rating on the ADS stock. The 12-month mean consensus price target for the company’s shares has been set at $132.71.