Wakefield Asset Management LLLP Takes Position in Bread Financial Holdings, Inc. $BFH

Key Points

• Wakefield Asset Management disclosed a new position in Bread Financial Holdings, buying 16,570 shares worth about $1.23 million in the fourth quarter.
• Bread Financial reported strong quarterly results, with EPS of $4.18 versus estimates of $3.00 and revenue of $1.02 billion, both topping Wall Street expectations.
• The company also announced a $600 million share buyback and a quarterly dividend of $0.23 per share, while analysts currently have an average Hold rating and a $93.36 price target.

Wakefield Asset Management LLLP purchased a new position in shares of Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 16,570 shares of the company's stock, valued at approximately $1,227,000.

Other hedge funds have also added to or reduced their stakes in the company. AlphaQuest LLC acquired a new stake in Bread Financial during the 3rd quarter worth approximately $1,620,000. Public Sector Pension Investment Board lifted its holdings in Bread Financial by 12.2% during the 3rd quarter. Public Sector Pension Investment Board now owns 209,029 shares of the company's stock worth $11,658,000 after purchasing an additional 22,745 shares during the last quarter. Allianz Asset Management GmbH lifted its holdings in Bread Financial by 44.5% during the 3rd quarter. Allianz Asset Management GmbH now owns 943,659 shares of the company's stock worth $52,628,000 after purchasing an additional 290,803 shares during the last quarter. Mizuho Markets Americas LLC lifted its holdings in Bread Financial by 11.5% during the 3rd quarter. Mizuho Markets Americas LLC now owns 363,445 shares of the company's stock worth $20,269,000 after purchasing an additional 37,466 shares during the last quarter. Finally, SG Americas Securities LLC lifted its holdings in Bread Financial by 748.3% during the 3rd quarter. SG Americas Securities LLC now owns 17,347 shares of the company's stock worth $967,000 after purchasing an additional 15,302 shares during the last quarter. 99.52% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Roger H. Ballou sold 9,687 shares of Bread Financial stock in a transaction on Friday, April 24th. The stock was sold at an average price of $90.32, for a total value of $874,929.84. Following the transaction, the director owned 30,079 shares in the company, valued at approximately $2,716,735.28. This trade represents a 24.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.30% of the company's stock.

Bread Financial Price Performance

Bread Financial stock opened at $86.89 on Friday. The stock's fifty day moving average price is $79.83 and its two-hundred day moving average price is $74.27. Bread Financial Holdings, Inc. has a one year low of $49.17 and a one year high of $99.13. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.15 and a quick ratio of 1.15. The firm has a market cap of $3.51 billion, a PE ratio of 7.12, a price-to-earnings-growth ratio of 0.82 and a beta of 1.12.

Bread Financial (NYSE:BFH - Get Free Report) last posted 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. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The firm had revenue of $1.02 billion for the quarter, compared to analyst estimates of $992.05 million. During the same quarter last year, the company earned $2.86 EPS. The company's revenue was up 4.9% on a year-over-year basis. As a group, research analysts expect that Bread Financial Holdings, Inc. will post 10.59 EPS for the current fiscal year.

Bread Financial declared that its Board of Directors has initiated a stock buyback plan on Thursday, February 26th that allows the company to repurchase $600.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 19% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its stock is undervalued.

Bread Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be paid a $0.23 dividend. The ex-dividend date 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 Analyst Weigh In

Several research firms recently weighed in on BFH. TD Cowen lifted their price target on Bread Financial from $80.00 to $95.00 and gave the stock a "hold" rating in a report on Friday, April 24th. Bank of America set a $92.00 price objective on Bread Financial and gave the stock an "overweight" rating in a research note on Wednesday, March 11th. Evercore restated an "outperform" rating and set a $99.00 price objective on shares of Bread Financial in a research note on Wednesday, April 29th. Wall Street Zen lowered Bread Financial from a "strong-buy" rating to a "buy" rating in a research note on Saturday, February 21st. Finally, BTIG Research raised their price objective on Bread Financial from $98.00 to $105.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $93.36.

Bread Financial 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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