Bread Financial (NYSE:BFH) Stock Price Breaks Above 50 Day Moving Average - What's Next?

Key Points

• Bread Financial shares rose above their 50-day moving average, trading as high as $105.39 versus the $103.88 average, with a market capitalization of approximately $4.03 billion.
• The company beat quarterly earnings expectations, reporting $3.84 in EPS versus the $3.34 consensus and $1.02 billion in revenue, up 4.7% year over year.
• Analyst sentiment remains mixed, with an overall “Hold” rating and a consensus price target of $112.21. Bread Financial also increased its quarterly dividend to $0.25 per share, implying a 1.0% annual yield.

Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) passed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $103.88 and traded as high as $105.39. Bread Financial shares last traded at $104.7960, with a volume of 527,187 shares.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on BFH shares. Barclays dropped their price target on Bread Financial from $110.00 to $107.00 and set an "equal weight" rating for the company in a research note on Friday, October 23rd. The Goldman Sachs Group lifted their price objective 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. Zacks Research downgraded shares of Bread Financial from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 6th. Weiss Ratings restated a "buy (b)" rating on shares of Bread Financial in a research report on Thursday, October 22nd. Finally, Royal Bank Of Canada restated a "sector perform" rating and set a $115.00 target price on shares of Bread Financial in a research report on Friday, July 24th. 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 company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $112.21.

Bread Financial Stock Up 2.1%

The firm has a market capitalization of $4.03 billion, a PE ratio of 8.26, a PEG ratio of 0.78 and a beta of 1.15. The company has a fifty day moving average price of $103.88 and a 200-day moving average price of $91.33. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.17 and a current ratio of 1.16.

Bread Financial (NYSE:BFH - Get Free Report) last posted its earnings results on Thursday, October 22nd. The company reported $3.84 EPS for the quarter, beating analysts' consensus estimates of $3.34 by $0.50. Bread Financial had a return on equity of 17.24% and a net margin of 11.19%. The firm had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same period in the prior year, the company earned $4.02 EPS. The company's quarterly revenue was up 4.7% compared to the same quarter last year. As a group, analysts expect that Bread Financial Holdings, Inc. will post 12.51 earnings per share for the current year.

Bread Financial Increases Dividend

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

Hedge Funds Weigh In On Bread Financial

A number of institutional investors and hedge funds have recently made changes to their positions in BFH. BlackRock Inc. purchased a new stake in shares of Bread Financial during the 2nd quarter valued at about $421,314,000. Dimensional Fund Advisors LP grew its position in Bread Financial by 0.3% in the first quarter. Dimensional Fund Advisors LP now owns 3,086,060 shares of the company's stock worth $231,111,000 after acquiring an additional 9,854 shares in the last quarter. Hsbc Holdings PLC grew its position in Bread Financial by 14.7% in the first quarter. Hsbc Holdings PLC now owns 1,009,890 shares of the company's stock worth $74,667,000 after acquiring an additional 129,774 shares in the last quarter. Bank of America Corp DE grew its position in 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 acquiring an additional 96,771 shares in the last quarter. Finally, Copeland Capital Management LLC bought a new stake in Bread Financial during the third quarter worth approximately $55,054,000. 99.52% of the stock is owned by hedge funds and other institutional investors.

About Bread Financial

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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