According to the latest data, investors are looking at Alliance Data Systems Corporation (NYSE:ADS)’s short data and trying to figure out market sentiment on which way the market thinks the stock is moving. The firm has 5.40% of total shares float short, yielding a short ratio of 4.36.
When investors engage in short selling or “shorting a stock”, they actually borrow shares from an existing owner, sell the borrowed shares at market price, and take the cash. The short sellers then promise to replace the stock in the future and makes dividend payments out of their own pockets to cover the dividend income that is no longer exists on the original, now borrowed and sold, shares.
Shorting a stock can be very risky if the price doesn’t decline like planned and, in fact, increases. It’s important for any investor to understand the dangers and potentially catastrophic financial losses of short selling.
RECENT PERFORMANCE AND RECOMMENDATION
Let’s take a look at how the stock has been performing recently. Over the past twelve months, Alliance Data Systems Corporation (NYSE:ADS)’s stock was 3.52%. Over the last week of the month, it was -10.45%, -8.85% over the last quarter, and 2.60% for the past six months.
Over the past 50 days, Alliance Data Systems Corporation stock’s -9.61% off of the high and 3.27% removed from the low. Their 52-Week High and Low are noted here. -9.80% away from the high and 24.00% from the low.
The consensus analysts recommendation at this point stands at 2.30 on Alliance Data Systems Corporation (NYSE:ADS). This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. The same analysts are predicting that the company shares will trade to $271.00 within the next 12-18 months.