Zacks Research Raises Earnings Estimates for Bread Financial

Key Points

• Zacks Research raised its FY2026 EPS estimate for Bread Financial to $12.55 from $11.78, slightly above the $12.51 analyst consensus; it maintained a “Hold” rating.
• Bread Financial’s latest quarter beat expectations, reporting EPS of $3.84 versus $3.34 forecast and revenue of $1.02 billion, up 4.7% year over year.
• The company increased its quarterly dividend to $0.25 per share from $0.23, equivalent to $1.00 annually and a 1.0% yield. Analysts overall rate the stock “Hold,” with an average price target of $111.71.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Analysts at Zacks Research boosted their FY2026 EPS estimates for Bread Financial in a report released on Thursday, November 5th. Zacks Research analyst Team now expects that the company will post earnings of $12.55 per share for the year, up from their previous estimate of $11.78. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $12.51 per share. Zacks Research also issued estimates for Bread Financial's Q2 2027 earnings at $2.53 EPS, Q3 2027 earnings at $4.11 EPS, Q4 2027 earnings at $2.48 EPS, FY2027 earnings at $12.09 EPS, Q2 2028 earnings at $2.65 EPS, Q3 2028 earnings at $4.51 EPS and FY2028 earnings at $12.76 EPS.

BFH has been the subject of a number of other reports. Morgan Stanley set a $107.00 price objective on shares of Bread Financial in a research note on Friday, July 24th. UBS Group dropped their target price on shares of Bread Financial from $127.00 to $120.00 and set a "buy" rating on the stock in a research report on Monday. Weiss Ratings restated a "buy (b)" rating on shares of Bread Financial in a report on Thursday, October 22nd. Evercore set a $118.00 price target on shares of Bread Financial in a research report on Thursday, October 1st. Finally, TD Cowen raised their price objective on shares of Bread Financial from $111.00 to $113.00 and gave the stock a "hold" rating in a research note on Friday, October 23rd. Eight investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $111.71.

Bread Financial Stock Down 1.9%

Shares of Bread Financial stock opened at $102.83 on Friday. Bread Financial has a 12-month low of $59.26 and a 12-month high of $114.53. The firm has a market capitalization of $3.90 billion, a PE ratio of 8.11, a price-to-earnings-growth ratio of 0.80 and a beta of 1.26. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.24. The stock's fifty day moving average is $103.69 and its 200-day moving average is $92.30.

Bread Financial (NYSE:BFH - Get Free Report) last posted its quarterly earnings results on Thursday, October 22nd. The company reported $3.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.50. The company had revenue of $1.02 billion for the quarter, compared to analysts' expectations of $1.01 billion. Bread Financial had a return on equity of 17.24% and a net margin of 11.19%. The firm's revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $4.02 earnings per share.

Bread Financial Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 30th will be issued a $0.25 dividend. The ex-dividend date is Monday, November 30th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.0%. This is a positive change from Bread Financial's previous quarterly dividend of $0.23. Bread Financial's dividend payout ratio is currently 7.89%.

Insider Buying and Selling at Bread Financial

In other Bread Financial news, Director John Fawcett bought 5,000 shares of the company's stock in a transaction dated Wednesday, October 28th. The shares were bought at an average price of $24.70 per share, for a total transaction of $123,500.00. Following the acquisition, the director directly owned 5,000 shares of the company's stock, valued at approximately $123,500. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Fifth Third Bancorp boosted its holdings in Bread Financial by 5,814.5% in the first quarter. Fifth Third Bancorp now owns 17,566 shares of the company's stock worth $1,315,000 after purchasing an additional 17,269 shares in the last quarter. Walleye Capital LLC bought a new position in Bread Financial during the second quarter valued at about $9,903,000. BlackRock Inc. bought a new position in Bread Financial during the second quarter valued at about $421,314,000. Bank of America Corp DE lifted its position in shares of Bread Financial by 18.1% in the first quarter. Bank of America Corp DE now owns 630,225 shares of the company's stock worth $47,198,000 after buying an additional 96,771 shares during the last quarter. Finally, Quantinno Capital Management LP lifted its position in shares of Bread Financial by 66.9% in the first quarter. Quantinno Capital Management LP now owns 28,170 shares of the company's stock worth $2,110,000 after buying an additional 11,292 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 Holdings, Inc NYSE: BFH is a financial services company that provides payment, lending and savings solutions to consumers and businesses. Its offerings include private-label and co-branded credit cards, installment lending, buy now, pay later services and deposit products.

The company operates through its Bread platform, which supports merchants with financing options, payment processing and customer loyalty solutions. Its consumer products have included Bread Cashback credit cards, Bread Pay installment payment services and Bread Savings deposit accounts.

Bread Financial primarily serves consumers and merchants in the United States, with solutions designed for retail, travel, home improvement and other industries.

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