Bread Financial (NYSE:BFH) Director Purchases $60,328.14 in Stock

Key Points

• Director buying: Bread Financial Director John Fawcett purchased 698 shares for about $60,328 at an average price of $86.43, lifting his holdings to 11,000 shares. The trade increased his position by 6.78% and was disclosed in an SEC filing.
• Strong recent results: The company reported quarterly EPS of $4.18, topping estimates by $1.18, while revenue of $1.02 billion also beat expectations and rose 4.9% year over year. Analysts now expect full-year EPS of 10.59.
• Capital returns and sentiment: Bread Financial announced a quarterly dividend of $0.23 per share and has a $600 million share repurchase authorization in place. Analysts currently have a consensus rating of Moderate Buy with a price target of $94.25.

Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) Director John Fawcett bought 698 shares of the stock in a transaction on Thursday, May 21st. The shares were bought at an average price of $86.43 per share, for a total transaction of $60,328.14. Following the purchase, the director directly owned 11,000 shares in the company, valued at approximately $950,730. This trade represents a 6.78% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.

Bread Financial Stock Performance

Shares of BFH stock traded up $0.60 during trading hours on Friday, reaching $86.38. The company had a trading volume of 184,179 shares, compared to its average volume of 764,520. 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 business has a fifty day moving average price of $80.87 and a 200-day moving average price of $74.98. Bread Financial Holdings, Inc. has a one year low of $49.17 and a one year high of $99.13. The firm has a market cap of $3.49 billion, a PE ratio of 7.08, a price-to-earnings-growth ratio of 0.83 and a beta of 1.12.

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 for the quarter, beating analysts' consensus estimates 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 prior year, the firm earned $2.86 earnings per share. The firm's revenue for the quarter was up 4.9% compared to the same quarter last year. Sell-side analysts predict that Bread Financial Holdings, Inc. will post 10.59 earnings per share for the current fiscal year.

Bread Financial Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be paid a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Friday, May 29th. Bread Financial's dividend payout ratio (DPR) is 7.53%.

Bread Financial declared that its board has authorized a share repurchase plan on Thursday, February 26th that permits the company to repurchase $600.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 19% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Bread Financial by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,589 shares of the company's stock worth $1,482,000 after acquiring an additional 1,286 shares during the period. Millennium Management LLC increased its stake in shares of Bread Financial by 46.5% in the first quarter. Millennium Management LLC now owns 345,902 shares of the company's stock worth $17,323,000 after purchasing an additional 109,864 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Bread Financial by 104.8% in the first quarter. Goldman Sachs Group Inc. now owns 736,604 shares of the company's stock worth $36,889,000 after purchasing an additional 376,920 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Bread Financial by 3.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,833 shares of the company's stock valued at $7,904,000 after purchasing an additional 4,624 shares during the period. Finally, Strs Ohio bought a new stake in shares of Bread Financial during the 1st quarter valued at $65,000. 99.52% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Barclays increased their price objective on shares of Bread Financial from $67.00 to $70.00 and gave the stock an "underweight" rating in a research note on Friday, April 24th. Zacks Research upgraded shares of Bread Financial from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 16th. Loop Capital started coverage on shares of Bread Financial in a research report on Thursday. They issued a "buy" rating and a $104.00 price target on the stock. Wall Street Zen cut shares of Bread Financial from a "strong-buy" rating to a "buy" rating in a research note on Saturday, February 21st. Finally, Bank of America set a $92.00 price objective on shares of Bread Financial and gave the company an "overweight" rating in a research report on Wednesday, March 11th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus 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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