Bread Financial (NYSE:BFH) Stock Gets Price Target Boost from TD Cowen

Key Points

• TD Cowen raised Bread Financial’s price target from $111 to $113 while maintaining a “hold” rating, implying roughly 10.1% upside. The broader analyst consensus is also “Hold,” with an average target of $112.21.
• Bread Financial exceeded third-quarter expectations, reporting $3.84 in EPS versus $3.34 expected and approximately $1.02 billion in revenue, up 4.7% year over year. However, EPS declined from $4.02 a year earlier.
• The stock traded down 5.5% amid mixed considerations, including an insider share sale and continued investor focus on credit performance, although institutional investors own 99.52% of the company.

Bread Financial (NYSE:BFH - Get Free Report) had its price objective raised by TD Cowen from $111.00 to $113.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has a "hold" rating on the stock. TD Cowen's price target indicates a potential upside of 10.12% from the stock's current price.

Other analysts also recently issued research reports about the company. Wells Fargo & Company assumed coverage on Bread Financial in a research note on Friday, September 11th. They set an "equal weight" rating and a $115.00 price target on the stock. Royal Bank Of Canada restated a "sector perform" rating and issued a $115.00 price objective on shares of Bread Financial in a research note on Friday, July 24th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bread Financial in a report on Thursday. Zacks Research downgraded Bread Financial from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 6th. Finally, Wolfe Research upgraded Bread Financial from a "peer perform" rating to an "outperform" rating and set a $130.00 target price on the stock in a research report on Tuesday, August 25th. Eight research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Bread Financial presently has a consensus rating of "Hold" and an average target price of $112.21.

Bread Financial Trading Down 5.5%

NYSE:BFH opened at $102.61 on Friday. Bread Financial has a 12 month low of $59.26 and a 12 month high of $114.53. The firm has a fifty day simple moving average of $104.63 and a 200-day simple moving average of $98.66. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $3.94 billion, a P/E ratio of 7.86, a PEG ratio of 0.86 and a beta of 1.15.

Bread Financial (NYSE:BFH - Get Free Report) last released its earnings results on Thursday, October 22nd. The company reported $3.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.50. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. Bread Financial had a return on equity of 18.42% and a net margin of 11.95%. The firm's revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the firm earned $4.02 EPS. On average, equities research analysts anticipate that Bread Financial will post 12.10 earnings per share for the current year.

Insider Buying and Selling at Bread Financial

In other news, Director Praniti Lakhwara sold 2,802 shares of Bread Financial stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $106.12, for a total transaction of $297,348.24. Following the completion of the transaction, the director directly owned 4,458 shares of the company's stock, valued at $473,082.96. The trade was a 38.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.30% of the stock is currently owned by company insiders.

Institutional Trading of Bread Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Bread Financial in the second quarter worth about $421,314,000. Dimensional Fund Advisors LP grew its position in shares of Bread Financial by 0.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,086,060 shares of the company's stock valued at $231,111,000 after acquiring an additional 9,854 shares during the period. Hsbc Holdings PLC acquired a new stake in shares of Bread Financial during the 2nd quarter valued at about $98,764,000. Bank of America Corp DE purchased a new position in shares of Bread Financial in the 2nd quarter valued at about $65,806,000. Finally, Copeland Capital Management LLC purchased a new position in shares of Bread Financial in the 3rd quarter valued at about $55,054,000. Institutional investors and hedge funds own 99.52% of the company's stock.

Key Bread Financial News

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: Third-quarter earnings were $3.84 per share, exceeding the $3.34 analyst consensus by $0.50. Revenue rose 4.7% year over year to approximately $1.02 billion, slightly above the $1.01 billion estimate. Bread Financial Q3 earnings
• Positive Sentiment: The board increased BFH’s quarterly common-stock dividend 8.7% to $0.25 per share, payable December 15 to shareholders of record November 30. Preferred-stock dividends were also declared, signaling continued shareholder distributions. Bread Financial dividend announcement
• Positive Sentiment: Bread Financial and Sephora signed a long-term renewal, preserving a major co-brand and loyalty-program relationship that could support future payment volume and customer engagement. Bread Financial and Sephora renewal
• Neutral Sentiment: Management discussed the results and full-year 2026 outlook during the earnings call, while the company released its presentation and performance materials for investors. Q3 2026 earnings call transcript
• Negative Sentiment: Despite beating estimates, quarterly EPS declined from $4.02 a year earlier to $3.84. Investors may also be focused on the September delinquency and net principal loss-rate update, as credit performance remains important for a consumer-finance company. Bread Financial September performance update

Bread Financial Company Profile

Bread Financial Holdings, Inc NYSE: BFH is a financial services company that provides payment, lending and savings solutions to consumers and businesses. Its offerings include private-label and co-branded credit cards, installment lending, buy now, pay later services and deposit products.

The company operates through its Bread platform, which supports merchants with financing options, payment processing and customer loyalty solutions. Its consumer products have included Bread Cashback credit cards, Bread Pay installment payment services and Bread Savings deposit accounts.

Bread Financial primarily serves consumers and merchants in the United States, with solutions designed for retail, travel, home improvement and other industries.

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