Bread Financial (NYSE:BFH) CEO Ralph Andretta Sells 15,000 Shares

Key Points

• CEO Ralph Andretta sold 15,000 shares of Bread Financial at an average price of $89.10, totaling about $1.34 million. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and he still owns more than 582,000 shares.
• Bread Financial reported stronger-than-expected quarterly results, with EPS of $4.18 versus analyst estimates of $3.00 and revenue of $1.02 billion, up 4.9% year over year. The company also beat on profitability metrics, including a 18.79% return on equity.
• The company continues returning capital to shareholders through a $600 million share buyback program and a quarterly dividend of $0.23 per share, payable June 15. The stock was also trading near $89.45, close to its recent highs, with analysts maintaining a consensus “Moderate Buy” rating.

Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) CEO Ralph Andretta sold 15,000 shares of the stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $89.10, for a total value of $1,336,500.00. Following the completion of the transaction, the chief executive officer owned 582,241 shares of the company's stock, valued at $51,877,673.10. This represents a 2.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Bread Financial Trading Up 0.4%

Shares of BFH traded up $0.38 during mid-day trading on Monday, reaching $89.45. 535,615 shares of the company were exchanged, compared to its average volume of 765,718. Bread Financial Holdings, Inc. has a 52 week low of $49.17 and a 52 week high of $99.13. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.15 and a current ratio of 1.15. The stock has a market capitalization of $3.61 billion, a PE ratio of 7.33, a PEG ratio of 0.84 and a beta of 1.12. The business has a 50 day simple moving average of $82.85 and a two-hundred day simple moving average of $76.02.

Bread Financial (NYSE:BFH - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The company reported $4.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.00 by $1.18. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The company had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $992.05 million. During the same period last year, the company earned $2.86 earnings per share. The firm's revenue was up 4.9% compared to the same quarter last year. On average, analysts predict that Bread Financial Holdings, Inc. will post 10.59 earnings per share for the current fiscal year.

Bread Financial declared that its Board of Directors has initiated a share buyback program on Thursday, February 26th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the company to purchase up to 19% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Bread Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, May 29th. Bread Financial's dividend payout ratio (DPR) is 7.53%.

Institutional Investors Weigh In On Bread Financial

Several large investors have recently added to or reduced their stakes in the business. Bank of America Corp DE grew its stake in Bread Financial by 18.1% in the first quarter. Bank of America Corp DE now owns 630,225 shares of the company's stock valued at $47,198,000 after acquiring an additional 96,771 shares during the period. Amundi grew its stake in Bread Financial by 15.5% in the first quarter. Amundi now owns 14,117 shares of the company's stock valued at $1,057,000 after acquiring an additional 1,894 shares during the period. California State Teachers Retirement System grew its stake in Bread Financial by 23.6% in the first quarter. California State Teachers Retirement System now owns 54,175 shares of the company's stock valued at $4,057,000 after acquiring an additional 10,347 shares during the period. Empowered Funds LLC grew its stake in Bread Financial by 3.5% in the first quarter. Empowered Funds LLC now owns 193,123 shares of the company's stock valued at $14,463,000 after acquiring an additional 6,574 shares during the period. Finally, Quantinno Capital Management LP grew its stake in Bread Financial by 66.9% in the first quarter. Quantinno Capital Management LP now owns 28,170 shares of the company's stock valued at $2,110,000 after acquiring an additional 11,292 shares during the period. Institutional investors and hedge funds own 99.52% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on BFH shares. Wall Street Zen downgraded Bread Financial from a "buy" rating to a "hold" rating in a research report on Saturday. Royal Bank Of Canada set a $105.00 price objective on Bread Financial in a research report on Friday, April 24th. TD Cowen raised their target price on Bread Financial from $80.00 to $95.00 and gave the stock a "hold" rating in a research note on Friday, April 24th. Evercore reaffirmed an "outperform" rating and set a $99.00 target price on shares of Bread Financial in a research note on Wednesday, April 29th. Finally, Zacks Research raised Bread Financial from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 16th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $94.25.

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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