Bread Financial (NYSE:BFH) Sets New 12-Month High - Here's What Happened

Key Points

• Bread Financial shares hit a new 52-week high, trading as high as $109.12 and ending near $109, up about 2.6% on the day. The move came with strong volume of 877,879 shares.
• Analyst sentiment has improved, with several firms reiterating or raising ratings and price targets, including a recent upgrade from Wall Street Zen to buy. MarketBeat shows an average rating of Moderate Buy and a consensus target of $96.42.
• Recent fundamentals have also been solid, as Bread Financial beat quarterly EPS and revenue estimates in April and recently paid a quarterly dividend of $0.23 per share. Insider activity was mixed, with a director buying shares and the CEO selling under a pre-arranged trading plan.

Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) shares reached a new 52-week high during trading on Tuesday . The company traded as high as $109.12 and last traded at $108.9990, with a volume of 877879 shares changing hands. The stock had previously closed at $106.27.

Wall Street Analysts Forecast Growth

BFH has been the topic of a number of recent research reports. Keefe, Bruyette & Woods restated an "outperform" rating on shares of Bread Financial in a report on Wednesday, June 10th. Royal Bank Of Canada lifted their price target on shares of Bread Financial from $105.00 to $115.00 and gave the stock a "sector perform" rating in a report on Friday, June 12th. Evercore reissued an "outperform" rating and issued a $99.00 price objective on shares of Bread Financial in a research report on Wednesday, April 29th. Barclays upped their price objective on shares of Bread Financial from $67.00 to $70.00 and gave the company an "underweight" rating in a research note on Friday, April 24th. Finally, Wall Street Zen raised shares of Bread Financial from a "hold" rating to a "buy" rating in a research note on Saturday, June 13th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $96.42.

Bread Financial Trading Up 2.6%

The business's fifty day moving average is $92.34 and its 200-day moving average is $80.86. The stock has a market capitalization of $4.40 billion, a PE ratio of 8.93, a P/E/G 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 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. The company had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $992.05 million. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The company's quarterly revenue was up 4.9% compared to the same quarter last year. During the same period last year, the business posted $2.86 EPS. As a group, analysts anticipate that Bread Financial Holdings, Inc. will post 10.62 EPS for the current fiscal year.

Bread Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 29th were paid a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, May 29th. Bread Financial's dividend payout ratio (DPR) is currently 7.53%.

Insider Activity

In other Bread Financial news, Director John J. Fawcett bought 698 shares of Bread Financial stock in a transaction that occurred on Thursday, May 21st. The shares were acquired at an average price of $86.43 per share, for a total transaction of $60,328.14. Following the acquisition, the director owned 11,000 shares of the company's stock, valued at $950,730. The trade was a 6.78% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Ralph J. Andretta sold 15,000 shares of the firm's stock in a transaction dated 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 sale, the chief executive officer owned 582,241 shares in the company, valued at approximately $51,877,673.10. The trade was a 2.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Bread Financial

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Millennium Management LLC boosted its holdings in Bread Financial by 223.4% in the fourth quarter. Millennium Management LLC now owns 665,812 shares of the company's stock valued at $49,290,000 after purchasing an additional 459,916 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Bread Financial by 241.1% during the 2nd quarter. Bank of America Corp DE now owns 537,656 shares of the company's stock valued at $30,711,000 after buying an additional 380,039 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of Bread Financial by 104.8% during the first quarter. Goldman Sachs Group Inc. now owns 736,604 shares of the company's stock worth $36,889,000 after buying an additional 376,920 shares in the last quarter. UBS Group AG grew its position in shares of Bread Financial by 100.4% during the fourth quarter. UBS Group AG now owns 716,725 shares of the company's stock worth $53,059,000 after buying an additional 359,088 shares in the last quarter. Finally, SG Americas Securities LLC increased its stake in shares of Bread Financial by 899.4% in the first quarter. SG Americas Securities LLC now owns 350,061 shares of the company's stock worth $26,216,000 after buying an additional 315,034 shares during the last quarter. 99.52% of the stock is owned by hedge funds and other institutional investors.

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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