Bread Financial (NYSE:BFH) Issues Earnings Results

Key Points

• Bread Financial reported earnings per share of $4.02 for the quarter, exceeding analysts' expectations of $2.11 by $1.91.
• Despite the earnings beat, the company's quarterly revenue decreased by 1.2% compared to the same period last year.
• Bread Financial's stock price increased by 7.8% following the earnings announcement, reaching $65.26 per share.

Bread Financial (NYSE:BFH - Get Free Report) announced its earnings results on Thursday. The company reported $4.02 earnings per share for the quarter, topping analysts' consensus estimates of $2.11 by $1.91, Zacks reports. Bread Financial had a return on equity of 13.10% and a net margin of 6.05%.Bread Financial's quarterly revenue was down 1.2% compared to the same quarter last year. During the same period last year, the company posted $1.83 EPS. Bread Financial updated its FY 2025 guidance to EPS.

Bread Financial Stock Up 7.8%

Shares of BFH traded up $4.72 on Thursday, reaching $65.26. The stock had a trading volume of 571,986 shares, compared to its average volume of 789,012. The firm has a market capitalization of $3.04 billion, a price-to-earnings ratio of 10.94, a price-to-earnings-growth ratio of 0.55 and a beta of 1.41. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.18 and a current ratio of 1.18. The company has a 50-day simple moving average of $60.97 and a 200-day simple moving average of $56.35. Bread Financial has a 12-month low of $38.21 and a 12-month high of $68.01.

Insiders Place Their Bets

In related news, Director John J. Fawcett acquired 1,027 shares of Bread Financial stock in a transaction that occurred on Wednesday, July 30th. The stock was bought at an average price of $61.79 per share, with a total value of $63,458.33. Following the transaction, the director directly owned 10,302 shares in the company, valued at approximately $636,560.58. This represents a 11.07% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.85% of the stock is currently owned by company insiders.

Institutional Trading of Bread Financial

A number of institutional investors and hedge funds have recently modified their holdings of BFH. Bank of America Corp DE increased its holdings in shares of Bread Financial by 241.1% in the 2nd quarter. Bank of America Corp DE now owns 537,656 shares of the company's stock worth $30,711,000 after purchasing an additional 380,039 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings 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 acquiring an additional 376,920 shares during the period. Basswood Capital Management L.L.C. grew its holdings in shares of Bread Financial by 73.6% in the second quarter. Basswood Capital Management L.L.C. now owns 308,964 shares of the company's stock worth $17,648,000 after acquiring an additional 130,939 shares during the period. Millennium Management LLC grew its holdings 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 acquiring an additional 109,864 shares during the period. Finally, Balyasny Asset Management L.P. bought a new stake in shares of Bread Financial in the second quarter worth $4,304,000. Institutional investors own 99.52% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on BFH shares. Morgan Stanley upped their target price on Bread Financial from $51.00 to $53.00 and gave the stock an "underweight" rating in a research note on Monday, September 29th. Keefe, Bruyette & Woods decreased their target price on Bread Financial from $88.00 to $71.00 and set an "outperform" rating on the stock in a research note on Wednesday, October 1st. Wall Street Zen lowered Bread Financial from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 9th. Evercore ISI decreased their target price on Bread Financial from $68.00 to $64.00 and set an "in-line" rating on the stock in a research note on Tuesday, September 30th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Bread Financial in a research report on Wednesday, October 8th. Three research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $66.20.

Bread Financial declared that its board has approved a share buyback plan on Wednesday, August 27th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Bread Financial Company Profile

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.

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