UBS Group AG Increases Position in Bread Financial Holdings, Inc. $BFH

Key Points

• UBS Group AG more than doubled its stake in Bread Financial in Q4 — a 100.4% increase to 716,725 shares, representing about 1.57% of the company and roughly $53.1 million.
• Bread Financial beat Q1 expectations with EPS of $4.18 (vs. $3.00 est.) and $1.02B revenue, and its board authorized a $600 million buyback program (up to ~19% of shares outstanding).
• The company priced an offering of Series B depositary shares at an 8.875% coupon to raise capital, a move that boosts flexibility but could be seen as a funding cost and potential overhang on common shares.

UBS Group AG increased its holdings in shares of Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) by 100.4% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 716,725 shares of the company's stock after buying an additional 359,088 shares during the period. UBS Group AG owned about 1.57% of Bread Financial worth $53,059,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in BFH. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Bread Financial by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,589 shares of the company's stock worth $1,482,000 after buying an additional 1,286 shares during the period. Millennium Management LLC increased its stake in Bread Financial by 46.5% during the 1st quarter. Millennium Management LLC now owns 345,902 shares of the company's stock worth $17,323,000 after buying an additional 109,864 shares during the period. Goldman Sachs Group Inc. increased its stake in Bread Financial by 104.8% during the 1st 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 during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Bread Financial by 3.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,833 shares of the company's stock worth $7,904,000 after buying an additional 4,624 shares during the period. Finally, Strs Ohio purchased a new stake in Bread Financial during the 1st quarter worth approximately $65,000. 99.52% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Bread Financial news, Director Roger H. Ballou sold 9,687 shares of the firm's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $90.32, for a total transaction of $874,929.84. Following the transaction, the director owned 30,079 shares of the company's stock, valued at approximately $2,716,735.28. This trade represents a 24.36% decrease in their ownership of the stock. The sale 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.

Bread Financial Trading Up 1.8%

BFH opened at $85.10 on Wednesday. The business's 50-day simple moving average is $77.77 and its 200-day simple moving average is $72.97. The company has a market cap of $3.44 billion, a P/E ratio of 6.97, a PEG ratio of 1.16 and a beta of 1.12. Bread Financial Holdings, Inc. has a one year low of $47.87 and a one year high of $99.13. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.15 and a current ratio of 1.15.

Bread Financial (NYSE:BFH - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The company reported $4.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.00 by $1.18. The company had revenue of $1.02 billion for the quarter, compared to analyst estimates of $992.05 million. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The business's quarterly revenue was up 4.9% compared to the same quarter last year. During the same quarter last year, the company posted $2.86 earnings per share. As a group, equities research analysts expect that Bread Financial Holdings, Inc. will post 10.43 EPS for the current fiscal year.

Bread Financial declared that its Board of Directors has initiated a stock buyback program on Thursday, February 26th that allows the company to buyback $600.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 19% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Bread Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 29th will be issued a dividend of $0.23 per share. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.92 annualized dividend and a dividend yield of 1.1%. Bread Financial's dividend payout ratio (DPR) is presently 7.53%.

Wall Street Analysts Forecast Growth

BFH has been the topic of a number of recent research reports. TD Cowen upped their target price on shares of Bread Financial from $80.00 to $95.00 and gave the stock a "hold" rating in a research note on Friday, April 24th. The Goldman Sachs Group upgraded shares of Bread Financial from a "sell" rating to a "hold" rating and set a $84.00 target price on the stock in a research note on Tuesday, January 6th. BTIG Research upped their target price on shares of Bread Financial from $98.00 to $105.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. Bank of America set a $92.00 target price on shares of Bread Financial and gave the stock an "overweight" rating in a research note on Wednesday, March 11th. Finally, UBS Group started coverage on shares of Bread Financial in a research note on Thursday, January 8th. They set a "buy" rating and a $92.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Bread Financial currently has an average rating of "Hold" and a consensus target price of $93.36.

Key Stories Impacting Bread Financial

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: Zacks bumped longer‑term forecasts — the firm raised Q1 2027 and Q3 2027 EPS targets and nudged FY2027 higher to $11.12, and it keeps a "Strong‑Buy" rating. That suggests analysts still see upside beyond near‑term noise and supports investor confidence in BFH’s multi‑quarter earnings trajectory.
• Neutral Sentiment: Bread launched an underwritten public offering of depositary shares representing 1/40th interests in Series B preferred stock; the company said proceeds may be used for general corporate purposes, including contributions to subsidiary Comenity Capital Bank and potential share repurchases. Launch of Preferred Depositary Share Public Offering
• Neutral Sentiment: Market commentary on valuation (post recent strong run) highlights BFH’s improved multiples after gains; this frames investor focus on whether earnings upgrades and capital actions justify the current price. Valuation Check After Strong Recent Share Price Performance
• Negative Sentiment: Zacks cut near‑term EPS estimates for 2026 quarters — Q2 2026 was reduced to $2.37 (from $2.48), Q3 2026 to $2.95 (from $3.02), and Q4 2026 to $0.88 (from $1.00). Near‑term downward revisions can translate into short‑term selling or increased volatility.
• Negative Sentiment: Bread priced the preferred/depositary offering: 4,800,000 depositary shares (with an underwriter option for 720,000 more) of Series B preferred paying 8.875% (fixed‑rate reset). While the deal boosts capital and flexibility, the high coupon and additional preferred securities can be viewed as a funding cost and a potential overhang for common shares. Pricing of Depositary Shares Offering

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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