Bread Financial (NYSE:BFH) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Bread Financial from a “buy” to a “hold” rating, even though the broader analyst view remains constructive.
• Other firms have recently been more bullish, with several raising price targets; the stock still carries a Moderate Buy consensus and a $94.25 average price target.
• Bread Financial reported strong quarterly results, beating EPS and revenue estimates, while also authorizing a $600 million share buyback plan.

Bread Financial (NYSE:BFH - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

Several other research firms also recently commented on BFH. Morgan Stanley set a $98.00 target price on Bread Financial in a research report on Friday, April 24th. Keefe, Bruyette & Woods raised their target price on Bread Financial from $100.00 to $115.00 and gave the stock an "outperform" rating in a research report on Friday, April 24th. BTIG Research raised their target price on Bread Financial from $98.00 to $105.00 and gave the stock a "buy" rating in a research report on Thursday, April 23rd. Loop Capital started coverage on Bread Financial in a research report on Thursday, May 21st. They set a "buy" rating and a $104.00 target price for the company. Finally, Zacks Research upgraded Bread Financial from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $94.25.

Bread Financial Price Performance

Shares of BFH stock opened at $89.07 on Friday. The stock has a 50 day moving average of $82.85 and a two-hundred day moving average of $75.94. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.25. Bread Financial has a 12 month low of $49.17 and a 12 month high of $99.13. The company has a market capitalization of $3.60 billion, a P/E ratio of 7.30, a P/E/G ratio of 0.83 and a beta of 1.12.

Bread Financial (NYSE:BFH - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The company reported $4.18 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 quarter last year, the company earned $2.86 EPS. The company's quarterly revenue was up 4.9% on a year-over-year basis. As a group, equities analysts expect that Bread Financial will post 10.59 EPS for the current year.

Bread Financial declared that its Board of Directors has initiated a stock buyback plan on Thursday, February 26th that allows the company to repurchase $600.00 million in shares. This repurchase authorization allows the company to buy up to 19% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Insider Buying and Selling at Bread Financial

In other Bread Financial news, Director Roger H. Ballou sold 9,687 shares of Bread Financial stock in a transaction on 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 owned 30,079 shares in the company, valued at approximately $2,716,735.28. The trade was a 24.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director John J. Fawcett acquired 698 shares of the business's stock in a transaction on Thursday, May 21st. The stock was acquired at an average price of $86.43 per share, with a total value of $60,328.14. Following the transaction, the director owned 11,000 shares in the company, valued at approximately $950,730. The trade was a 6.78% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Bread Financial

Several institutional investors have recently bought and sold shares of the business. Kemnay Advisory Services Inc. acquired a new stake in shares of Bread Financial in the 4th quarter valued at $28,000. Cullen Frost Bankers Inc. acquired a new stake in shares of Bread Financial in the 4th quarter valued at $29,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Bread Financial by 141.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company's stock valued at $31,000 after buying an additional 329 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of Bread Financial by 127.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company's stock valued at $41,000 after buying an additional 398 shares during the period. Finally, Caitong International Asset Management Co. Ltd increased its stake in shares of Bread Financial by 8,300.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company's stock valued at $47,000 after buying an additional 830 shares during the period. Institutional investors own 99.52% of the company's stock.

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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