Alliance Data Systems Corp. (NYSE: ADS) Downgraded at Zacks Investment Research

Shares of Alliance Data Systems Corp. (NYSE: ADS) were downgraded by analysts at Zacks Investment Research in a note to their investors today. Zacks Investment Research currently has a rating of Sell on the stock. A number of other analysts have commented on the stock recently, and Alliance Data Systems Corp. has secured a consensus one-year price target of $255.05, above the opening price of $215.04. Alliance Data Systems Corp. stock has a 52-week high of $303.75. Material and major digressions in the company’s procedures, future outlook or industry can cause downgrades as the analysts feel that the future prospects for the security have weakened from the initial recommendation.

The Fed stood pat on interest rates on Wednesday, helping stocks to mostly higher levels but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end

On Wednesday, the S&P 500 SPX, +1.09% ended 1.1% higher, while the Dow DJIA, +0.90% jumped by 0.9%, or 164 points, as each exchange finished in positive territory for a second consecutive day.

The tech-heavy Nasdaq Composite COMP, +1.03% tacked on 1% and scored a record closing high.

S&P 500 futures ESZ6, +0.36% were up 6.55 points, or 0.3%, to 2,162.75 early Thursday, while Dow Jones Industrial Average futures YMZ6, +0.37% rose 58 points, or 0.3%, to 18,276. Nasdaq-100 futures NQZ6, +0.39% gained 16.25 points, or 0.3%, to 4,866.25.

Shares of Alliance Data Systems Corp. (NYSE: ADS) opened at $215.04 yesterday trading between $213.02 and $216.86, and last traded at $215.63, which is a spike of $1.89 from the previous closing price.

Alliance Data Systems Corp. (NYSE: ADS) currently has a market cap of 12.62B.

471,862 shares traded hands yesterday, below normal, out of a total float 52,069,000. Trading volume is likely to increase in the next few days as momentum traders often use upticks in trading volume to identify large volume growth or distribution by institutional investors.

While increased trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

By tracking the activity of these professional investors—and the moving averages they influence—it allows for traders to make more useful decisions on trades.

With that in mind, Alliance Data Systems Corp. (NYSE: ADS) now has a 50-day MA of $211.28 and 200-day MA of $210.82. It has traded in a 52-week range between $176.63 – 303.75 and today’s last price is 0.29% lower than the 52 week high of $303.75.

Earnings growth is a crucial factor to look at when buying stocks and investors identify companies that have raised their earnings by at least 25% over 3 consecutive years.

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