Bread Financial (NYSE:BFH) Sets New 1-Year High - Here's Why

Key Points

• Bread Financial stock hit a new 52-week high, trading as high as $82.29 after closing at $80.19, reflecting strong market interest in the name.
• The company reported a blowout quarter with $2.07 EPS vs. $0.40 expected and $975M revenue, with a 11.02% net margin and 17.92% ROE.
• Board approved a $600M buyback (up to 19% of shares) and paid a $0.23 quarterly dividend, while analysts remain mixed—consensus rating is "Hold" with a $81.92 target.

Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) shares reached a new 52-week high during trading on Tuesday . The stock traded as high as $82.29 and last traded at $82.2150, with a volume of 120810 shares. The stock had previously closed at $80.19.

Analysts Set New Price Targets

Several research firms recently commented on BFH. Wall Street Zen downgraded shares of Bread Financial from a "strong-buy" rating to a "buy" rating in a report on Saturday, February 21st. UBS Group began coverage on shares of Bread Financial in a report on Thursday, January 8th. They issued a "buy" rating and a $92.00 price objective for the company. Keefe, Bruyette & Woods raised their price objective on shares of Bread Financial from $82.00 to $92.00 and gave the stock an "outperform" rating in a report on Friday, January 2nd. Zacks Research downgraded shares of Bread Financial from a "strong-buy" rating to a "hold" rating in a report on Monday, December 22nd. Finally, Royal Bank Of Canada set a $90.00 price objective on shares of Bread Financial and gave the stock a "sector perform" rating in a report on Friday. Six research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $81.92.

Bread Financial Stock Performance

The company's fifty day simple moving average is $74.38 and its 200 day simple moving average is $69.90. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.27. The stock has a market capitalization of $3.41 billion, a P/E ratio of 7.60, a P/E/G ratio of 1.21 and a beta of 1.11.

Bread Financial (NYSE:BFH - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The company reported $2.07 EPS for the quarter, beating the consensus estimate of $0.40 by $1.67. Bread Financial had a net margin of 11.02% and a return on equity of 17.92%. The firm had revenue of $975.00 million during the quarter, compared to the consensus estimate of $954.74 million. During the same period last year, the firm earned $0.41 EPS. As a group, sell-side analysts forecast that Bread Financial Holdings, Inc. will post 6.45 earnings per share for the current fiscal year.

Bread Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Friday, February 27th were issued a $0.23 dividend. This represents a $0.92 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, February 27th. Bread Financial's dividend payout ratio (DPR) is presently 8.49%.

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

Institutional Trading of Bread Financial

Hedge funds have recently made changes to their positions in the stock. Kemnay Advisory Services Inc. bought a new stake in shares of Bread Financial during the 4th quarter worth $28,000. Cullen Frost Bankers Inc. bought a new stake in shares of Bread Financial during the 4th quarter worth $29,000. Northwestern Mutual Wealth Management Co. lifted its holdings 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 acquiring an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings 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 acquiring an additional 398 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of Bread Financial by 8,300.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company's stock worth $47,000 after acquiring an additional 830 shares during the last quarter. 99.52% of the stock is owned by 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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