Zacks Research Forecasts Higher Earnings for Bread Financial

Key Points

• Zacks Research has raised its FY2025 earnings estimate for Bread Financial Holdings to $7.85 per share, significantly higher than their previous estimate of $6.82.
• Royal Bank of Canada increased their price target on Bread Financial to $74.00 and assigned a "sector perform" rating, while BTIG Research set a buy rating with a target of $105.00.
• The company recently declared a quarterly dividend of $0.21, scheduled to be paid on September 12th, reflecting an annualized yield of 1.4%.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Zacks Research upped their FY2025 EPS estimates for shares of Bread Financial in a research note issued to investors on Tuesday, August 5th. Zacks Research analyst T. De now expects that the company will post earnings per share of $7.85 for the year, up from their previous estimate of $6.82. The consensus estimate for Bread Financial's current full-year earnings is $6.45 per share. Zacks Research also issued estimates for Bread Financial's Q4 2025 earnings at ($0.06) EPS, Q2 2026 earnings at $2.34 EPS and FY2026 earnings at $8.66 EPS.

BFH has been the subject of a number of other reports. BTIG Research set a $105.00 target price on shares of Bread Financial and gave the company a "buy" rating in a report on Monday, July 14th. Jefferies Financial Group boosted their target price on shares of Bread Financial from $45.00 to $50.00 and gave the stock a "hold" rating in a research report on Thursday, April 24th. JMP Securities reissued a "market perform" rating on shares of Bread Financial in a report on Monday, April 28th. Barclays reiterated an "underweight" rating and issued a $52.00 target price (up from $45.00) on shares of Bread Financial in a research report on Tuesday, July 8th. Finally, Wall Street Zen lowered shares of Bread Financial from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Three analysts have rated the stock with a sell rating, six have given a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $64.42.

Bread Financial Price Performance

Shares of NYSE:BFH traded up $2.02 during trading on Friday, reaching $60.38. The company had a trading volume of 264,000 shares, compared to its average volume of 841,652. The company has a fifty day moving average of $57.76 and a two-hundred day moving average of $54.13. The stock has a market capitalization of $2.82 billion, a P/E ratio of 10.22, a price-to-earnings-growth ratio of 0.93 and a beta of 1.42. Bread Financial has a 12 month low of $38.21 and a 12 month high of $66.71. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 0.36.

Bread Financial (NYSE:BFH - Get Free Report) last posted its quarterly earnings results on Thursday, July 24th. The company reported $3.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.85 by $1.29. The company had revenue of $929.00 million for the quarter, compared to analyst estimates of $944.69 million. Bread Financial had a net margin of 6.05% and a return on equity of 13.10%. The company's quarterly revenue was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.66 earnings per share.

Institutional Investors Weigh In On Bread Financial

Several hedge funds have recently added to or reduced their stakes in BFH. GAMMA Investing LLC lifted its stake in shares of Bread Financial by 28.0% during the first quarter. GAMMA Investing LLC now owns 1,457 shares of the company's stock worth $73,000 after buying an additional 319 shares during the period. Envestnet Asset Management Inc. lifted its stake in shares of Bread Financial by 15.0% in the 1st quarter. Envestnet Asset Management Inc. now owns 10,816 shares of the company's stock worth $542,000 after acquiring an additional 1,412 shares during the period. Allianz Asset Management GmbH increased its holdings in Bread Financial by 2.9% during the 1st quarter. Allianz Asset Management GmbH now owns 488,316 shares of the company's stock valued at $24,455,000 after acquiring an additional 13,656 shares in the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Bread Financial during the fourth quarter worth about $338,000. Finally, Principal Financial Group Inc. boosted its position in shares of Bread Financial by 1.4% in the first quarter. Principal Financial Group Inc. now owns 244,503 shares of the company's stock worth $12,245,000 after acquiring an additional 3,416 shares during the last quarter. Institutional investors own 99.52% of the company's stock.

Insiders Place Their Bets

In related news, Director John J. Fawcett bought 1,027 shares of the business's stock in a transaction on Wednesday, July 30th. The shares were purchased at an average cost of $61.79 per share, with a total value of $63,458.33. Following the acquisition, the director owned 10,302 shares of the company's stock, valued at $636,560.58. This represents a 11.07% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.62% of the stock is owned by corporate insiders.

Bread Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Shareholders of record on Friday, August 8th will be issued a $0.21 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $0.84 annualized dividend and a yield of 1.4%. Bread Financial's payout ratio is currently 14.21%.

About Bread Financial

Bread Financial Holdings, Inc provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit.