Bread Financial (NYSE:BFH) Price Target Raised to $132.00

Key Points

• BTIG Research raised its price target on Bread Financial from $105 to $132 and kept a buy rating, implying about 21% upside from the current share price.
• Bread Financial’s latest quarter beat expectations, with EPS of $4.18 versus $3.00 expected and revenue of $1.02 billion topping forecasts. Revenue rose 4.9% year over year.
• Insider activity was mixed: a director bought shares in May, while CEO Ralph J. Andretta sold 15,000 shares under a pre-arranged trading plan. Meanwhile, institutional ownership remains very high at 99.52%.

Bread Financial (NYSE:BFH - Get Free Report) had its price objective raised by stock analysts at BTIG Research from $105.00 to $132.00 in a research note issued on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the stock. BTIG Research's price target would indicate a potential upside of 21.10% from the company's current price.

A number of other brokerages have also weighed in on BFH. Morgan Stanley set a $98.00 price objective on Bread Financial in a report on Friday, April 24th. Zacks Research raised Bread Financial from a "hold" rating to a "strong-buy" rating in a report on Thursday, April 16th. Wolfe Research restated a "positive" rating on shares of Bread Financial in a research report on Wednesday, June 10th. TD Cowen boosted their target price on shares of Bread Financial from $80.00 to $95.00 and gave the stock a "hold" rating in a research report on Friday, April 24th. Finally, Royal Bank Of Canada upped their price target on shares of Bread Financial from $105.00 to $115.00 and gave the stock a "sector perform" rating in a research note on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Bread Financial presently has an average rating of "Moderate Buy" and a consensus price target of $98.67.

Bread Financial Price Performance

Shares of NYSE:BFH opened at $109.00 on Tuesday. Bread Financial has a 52 week low of $53.83 and a 52 week high of $109.12. The company has a 50-day moving average price of $92.34 and a 200 day moving average price of $80.86. The company has a market cap of $4.40 billion, a P/E ratio of 8.93, a PEG ratio of 0.97 and a beta of 1.12. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.25.

Bread Financial (NYSE:BFH - Get Free Report) last released its earnings results on Thursday, April 23rd. The company reported $4.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.00 by $1.18. The company had revenue of $1.02 billion for the quarter, compared to analysts' expectations of $992.05 million. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The firm's quarterly revenue was up 4.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.86 EPS. Research analysts predict that Bread Financial will post 10.62 earnings per share for the current year.

Insider Buying and Selling

In other news, Director John J. Fawcett bought 698 shares of the firm's stock in a transaction on Thursday, May 21st. The shares were bought at an average cost of $86.43 per share, for a total transaction of $60,328.14. Following the completion of the transaction, the director owned 11,000 shares in the company, valued at $950,730. This trade represents a 6.78% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Ralph J. Andretta sold 15,000 shares of the company's stock in a transaction on 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 sale, the chief executive officer directly owned 582,241 shares in the company, valued at $51,877,673.10. This trade represents a 2.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Bread Financial

Hedge funds have recently added to or reduced their stakes in the business. Kemnay Advisory Services Inc. purchased a new stake in shares of Bread Financial in the fourth quarter valued at about $28,000. Cullen Frost Bankers Inc. acquired a new stake in shares of Bread Financial in the fourth quarter valued at approximately $29,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of 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 in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of 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 in the last quarter. Finally, Pacer Advisors Inc. raised its position in shares of Bread Financial by 58.7% during the 1st quarter. Pacer Advisors Inc. now owns 614 shares of the company's stock worth $46,000 after purchasing an additional 227 shares during the last quarter. 99.52% of the stock is currently owned by hedge funds and other institutional investors.

About Bread Financial

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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