Cryder Capital Partners Is Betting Big on Payment Processing Companies

Alliance Data Systems Corporation (NYSE:ADS)

– Shares Owned by Cryder Capital Partners LLP (as of March 31): 78,422

– Value of Holding (as of March 31): $17.25 million

Alliance Data Systems Corporation (NYSE:ADS) is another card and payment services company in which Cryder Capital Partners LLP increased its stake during the first quarter, by 46%. Alliance Data Systems Corporation (NYSE:ADS)’s stock fell in January on the back of dismal fourth quarter numbers and is yet to recover from that slump as it has lost 27% year-to-date. For its fiscal 2016, the company reported EPS of $3.84, beating analysts’ estimate by $0.01, and revenue of $1.68 billion, missing Street’s projection by $10 million. Following the earnings release, on April 22, analysts at Pacific Crest  lowered their price target on the stock to $250 from $300, while keeping their rating on it unchanged at ‘Overweight’. On April 28, CNBC’s Jim Cramer recommended Alliance Data Systems Corporation’s stock as a ‘Buy’ at current levels on his show ‘Mad Money’. According to Mr. Cramer, the stock has been struggling lately, but the company is in a better shape than its stock price indicates. Charles Paquelet‘s Skylands Capital was another hedge fund that increased its stake in Alliance Data Systems Corporation during the first quarter, by 14% to 4,225 shares.

Westinghouse Air Brake Technologies Corp (NYSE:WAB)

– Shares Owned by Cryder Capital Partners LLP (as of March 31): 226,004

– Value of Holding (as of March 31): $17.92 million

Finally, an 11% increase in Westinghouse Air Brake Technologies Corp (NYSE:WAB)’s stock during the first quarter coupled with Cryder Capital Partners LLP increasing its stake in the company by 27% during that period, helped Westinghouse Air Brake Technologies Corp (NYSE:WAB) to jump four spots quarter-over-quarter and become the fund’s top stock pick at the end of March. Even though the company reported mixed results for the first quarter on April 26, its shares spiked up nearly 8% over the next two days following the earnings release and has gained 10% year-to-date. While the Street was expecting EPS of $1.00 on revenue of $801.2 million, Westinghouse Air Brake Technologies declared EPS of $1.05 on revenue of $772.03 million. The 13 prominent analysts and research firms that track the stock currently have an average rating of ‘Overweight’ on the stock and an average price target of $92.40.

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