Bank of New York Mellon Corp Acquires New Shares in Bread Financial Holdings, Inc. $BFH

Key Points

• Bank of New York Mellon acquired 364,261 Bread Financial shares worth approximately $39.5 million, giving it a 0.95% stake. Institutional investors and hedge funds collectively own 99.52% of BFH.
• Bread Financial reported quarterly earnings of $3.55 per share, exceeding estimates of $2.74, while revenue rose 6.9% year over year to $993 million.
• The company declared a quarterly dividend of $0.23 per share, equivalent to a 0.9% yield. Analysts have an average “Hold” rating and a $112.08 price target, compared with the stock’s reported price of $105.75.

Bank of New York Mellon Corp bought a new stake in Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 364,261 shares of the company's stock, valued at approximately $39,468,000. Bank of New York Mellon Corp owned approximately 0.95% of Bread Financial at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. GSA Capital Partners LLP acquired a new stake in shares of Bread Financial during the 2nd quarter valued at about $2,293,000. Walleye Capital LLC acquired a new position in Bread Financial in the second quarter worth approximately $9,903,000. Baron Wealth Management LLC raised its position in Bread Financial by 6.5% during the second quarter. Baron Wealth Management LLC now owns 6,466 shares of the company's stock valued at $701,000 after acquiring an additional 392 shares in the last quarter. GAMMA Investing LLC raised its position in Bread Financial by 2.6% during the second quarter. GAMMA Investing LLC now owns 3,842 shares of the company's stock valued at $416,000 after acquiring an additional 99 shares in the last quarter. Finally, Pacer Advisors Inc. lifted its stake in Bread Financial by 58.7% in the first quarter. Pacer Advisors Inc. now owns 614 shares of the company's stock valued at $46,000 after acquiring an additional 227 shares during the last quarter. 99.52% of the stock is owned by institutional investors and hedge funds.

Bread Financial Stock Performance

Shares of NYSE BFH opened at $105.75 on Friday. The firm has a market capitalization of $4.06 billion, a price-to-earnings ratio of 8.25, a PEG ratio of 0.68 and a beta of 1.11. Bread Financial Holdings, Inc. has a one year low of $53.83 and a one year high of $114.53. The business has a fifty day simple moving average of $105.31 and a 200 day simple moving average of $90.28. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.25.

Bread Financial (NYSE:BFH - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The company reported $3.55 earnings per share for the quarter, topping analysts' consensus estimates of $2.74 by $0.81. The firm had revenue of $993.00 million for the quarter, compared to the consensus estimate of $959.32 million. Bread Financial had a net margin of 11.95% and a return on equity of 18.42%. The business's revenue was up 6.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.15 earnings per share. Sell-side analysts expect that Bread Financial Holdings, Inc. will post 12.1 EPS for the current year.

Bread Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be paid a dividend of $0.23 per share. The ex-dividend date is Monday, August 31st. This represents a $0.92 dividend on an annualized basis and a yield of 0.9%. Bread Financial's dividend payout ratio (DPR) is currently 7.18%.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on BFH. Keefe, Bruyette & Woods restated an "outperform" rating on shares of Bread Financial in a research note on Wednesday, June 10th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bread Financial in a research note on Friday, July 24th. Loop Capital began coverage on shares of Bread Financial in a report on Thursday, May 21st. They issued a "buy" rating and a $104.00 price objective for the company. TD Cowen increased their target price on shares of Bread Financial from $103.00 to $114.00 and gave the stock a "hold" rating in a research report on Friday, July 24th. Finally, Wall Street Zen raised Bread Financial from a "hold" rating to a "buy" rating in a research report on Saturday, June 13th. Eight equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $112.08.

Insiders Place Their Bets

In other Bread Financial news, Director Praniti Lakhwara sold 2,802 shares of Bread Financial stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $106.12, for a total transaction of $297,348.24. Following the sale, the director directly owned 4,458 shares of the company's stock, valued at approximately $473,082.96. The trade was a 38.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.30% of the company's stock.

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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