Bread Financial Holdings, Inc. $BFH Shares Sold by Hsbc Holdings PLC

Key Points

• Hsbc Holdings reduced its Bread Financial stake by 10.1% in the second quarter, selling 102,432 shares and retaining 907,458 shares worth approximately $98.8 million. Institutional investors collectively own 99.52% of the company.
• Bread Financial exceeded quarterly expectations, reporting $3.55 in EPS versus the $2.74 consensus estimate and $993 million in revenue, up 6.9% year over year.
• The company declared a quarterly dividend of $0.23 per share, equivalent to a $0.92 annualized payout and a 0.8% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $112.08.

Hsbc Holdings PLC decreased its stake in Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) by 10.1% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 907,458 shares of the company's stock after selling 102,432 shares during the quarter. Hsbc Holdings PLC owned approximately 2.36% of Bread Financial worth $98,764,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Kemnay Advisory Services Inc. acquired a new stake in Bread Financial in the 4th quarter worth about $28,000. Cullen Frost Bankers Inc. acquired a new position in shares of Bread Financial during the fourth quarter valued at approximately $29,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Bread Financial in the second quarter valued at approximately $30,000. EverSource Wealth Advisors LLC lifted its position in shares of Bread Financial by 127.2% in the second quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company's stock valued at $41,000 after acquiring an additional 398 shares in the last quarter. Finally, Pacer Advisors Inc. increased its position in shares of Bread Financial by 58.7% during the first quarter. Pacer Advisors Inc. now owns 614 shares of the company's stock worth $46,000 after purchasing an additional 227 shares in the last quarter. Hedge funds and other institutional investors own 99.52% of the company's stock.

Bread Financial Stock Down 0.2%

Shares of BFH opened at $110.70 on Monday. Bread Financial Holdings, Inc. has a 52-week low of $53.83 and a 52-week high of $114.53. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.25. The stock has a fifty day simple moving average of $105.48 and a two-hundred day simple moving average of $91.51. The company has a market capitalization of $4.25 billion, a PE ratio of 8.63, a price-to-earnings-growth ratio of 0.70 and a beta of 1.10.

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

Bread Financial Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, August 31st. Bread Financial's payout ratio is presently 7.18%.

Wall Street Analyst Weigh In

BFH has been the topic of a number of research reports. Wolfe Research upgraded Bread Financial from a "peer perform" rating to an "outperform" rating and set a $130.00 price objective on the stock in a report on Tuesday, August 25th. The Goldman Sachs Group increased their target price on shares of Bread Financial from $94.00 to $108.00 and gave the company a "neutral" rating in a research report on Tuesday, July 7th. Bank of America reissued a "buy" rating and issued a $108.00 price target on shares of Bread Financial in a research note on Wednesday, June 10th. Evercore restated an "outperform" rating and set a $116.00 price target on shares of Bread Financial in a research report on Monday, July 6th. Finally, Wall Street Zen upgraded shares of Bread Financial from a "hold" rating to a "buy" rating in a report on Saturday, June 13th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $112.08.

Insider Activity at Bread Financial

In other news, Director Praniti Lakhwara sold 2,802 shares of the stock in a transaction 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 completion of the transaction, the director directly owned 4,458 shares in the company, valued at approximately $473,082.96. This represents a 38.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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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