Bread Financial Holdings, Inc. (NYSE:BFH) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Brokerages have given Bread Financial a consensus rating of "Hold" based on 13 analyst reports (2 sell, 4 hold, 6 buy, 1 strong buy) with an average 12‑month price target of about $92.55.
• The company posted a strong quarter, beating EPS estimates ($4.18 actual vs. $3.00 consensus) and revenue of $1.02 billion, and analysts forecast roughly 9.79 EPS for the current fiscal year.
• Bread Financial's board authorized a $600 million share buyback (up to ~19% of shares) and declared a quarterly dividend of $0.23 ($0.92 annual, ~1.0% yield), signaling management's focus on returning capital to shareholders.

Shares of Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) have been assigned a consensus recommendation of "Hold" from the thirteen brokerages that are presently covering the company, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $92.5455.

A number of research analysts recently issued reports on the company. Wall Street Zen cut Bread Financial from a "strong-buy" rating to a "buy" rating in a report on Saturday, February 21st. Zacks Research raised Bread Financial from a "hold" rating to a "strong-buy" rating in a report on Thursday, April 16th. Barclays lifted their price target on Bread Financial from $67.00 to $70.00 and gave the company an "underweight" rating in a report on Friday. UBS Group assumed coverage on Bread Financial in a report on Thursday, January 8th. They issued a "buy" rating and a $92.00 price target for the company. Finally, TD Cowen lifted their price target on Bread Financial from $80.00 to $95.00 and gave the company a "hold" rating in a report on Friday.

Bread Financial Stock Up 2.2%

Shares of NYSE:BFH opened at $88.03 on Tuesday. Bread Financial has a 52 week low of $46.04 and a 52 week high of $99.13. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.17 and a current ratio of 1.15. The company's fifty day moving average is $76.90 and its 200-day moving average is $72.18. The company has a market capitalization of $3.65 billion, a PE ratio of 7.21, a P/E/G ratio of 1.27 and a beta of 1.11.

Bread Financial (NYSE:BFH - Get Free Report) last issued its earnings results on Thursday, April 23rd. The company reported $4.18 EPS for the quarter, beating the consensus estimate of $3.00 by $1.18. Bread Financial had a net margin of 11.90% and a return on equity of 18.79%. The company had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $992.05 million. During the same quarter in the previous year, the company earned $2.86 EPS. The firm's revenue for the quarter was up 4.9% compared to the same quarter last year. Equities research analysts predict that Bread Financial will post 9.79 earnings per share for the current fiscal year.

Bread Financial declared that its board has initiated a share buyback plan on Thursday, February 26th that allows the company to repurchase $600.00 million in shares. This repurchase authorization allows the company to purchase up to 19% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

Bread Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 29th will be issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, May 29th. Bread Financial's payout ratio is currently 7.53%.

Insider Activity

In related news, Director Roger H. Ballou sold 9,687 shares of Bread Financial stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $90.32, for a total value of $874,929.84. Following the completion of the transaction, the director directly owned 30,079 shares of the company's stock, valued at $2,716,735.28. The trade was a 24.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 1.30% of the stock is owned by corporate insiders.

Institutional Trading of Bread Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in BFH. Kemnay Advisory Services Inc. bought a new stake in Bread Financial during the 4th quarter worth about $28,000. Cullen Frost Bankers Inc. bought a new stake in Bread Financial during the 4th quarter worth about $29,000. Northwestern Mutual Wealth Management Co. raised its holdings in Bread Financial by 141.2% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company's stock worth $31,000 after purchasing an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in Bread Financial by 127.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company's stock worth $41,000 after purchasing an additional 398 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its holdings in Bread Financial by 8,300.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company's stock worth $47,000 after purchasing an additional 830 shares during the last quarter. 99.52% of the stock is owned by institutional investors.

Bread Financial Company Profile

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.

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