Bread Financial (NYSE:BFH) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada has increased its price target for Bread Financial stock from $65.00 to $74.00, indicating a potential upside of 20.19% from the current price.
• Analysts have mixed views on Bread Financial, with three sell ratings, six hold ratings, and four buy ratings, resulting in an average target price of $64.42.
• Bread Financial's stock rose 0.9% to $61.57 on Friday, with a market capitalization of $2.87 billion and a PE ratio of 10.94.
• The company reported $3.14 EPS for the last quarter, exceeding expectations, while its revenue was slightly below projections at $929 million.

Bread Financial (NYSE:BFH - Free Report) had its price objective raised by Royal Bank Of Canada from $65.00 to $74.00 in a research report released on Friday morning,Benzinga reports. The firm currently has a sector perform rating on the stock.

A number of other equities research analysts have also issued reports on BFH. Jefferies Financial Group boosted their target price on Bread Financial from $45.00 to $50.00 and gave the stock a "hold" rating in a research report on Thursday, April 24th. BTIG Research set a $105.00 price objective on Bread Financial and gave the stock a "buy" rating in a report on Monday, July 14th. Morgan Stanley raised their target price on shares of Bread Financial from $36.00 to $39.00 and gave the stock an "underweight" rating in a report on Monday, May 12th. Barclays restated an "underweight" rating and set a $52.00 price target (up previously from $45.00) on shares of Bread Financial in a report on Tuesday, July 8th. Finally, JMP Securities reaffirmed a "market perform" rating on shares of Bread Financial in a research note on Monday, April 28th. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating, four have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $64.42.

Bread Financial Price Performance

Bread Financial stock traded down $0.70 during midday trading on Friday, hitting $63.32. The company's stock had a trading volume of 196,306 shares, compared to its average volume of 855,726. Bread Financial has a 12 month low of $38.21 and a 12 month high of $66.71. The company has a quick ratio of 1.17, a current ratio of 1.18 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $2.95 billion, a PE ratio of 10.71, a price-to-earnings-growth ratio of 1.16 and a beta of 1.38. The stock's 50-day moving average price is $56.17 and its 200-day moving average price is $54.30.

Bread Financial (NYSE:BFH - Get Free Report) last released its earnings results on Thursday, July 24th. The company reported $3.14 EPS for the quarter, topping analysts' consensus estimates of $1.85 by $1.29. The business had revenue of $929.00 million for the quarter, compared to the consensus estimate of $944.69 million. Bread Financial had a net margin of 6.05% and a return on equity of 13.10%. The business's revenue for the quarter was down 1.1% on a year-over-year basis. During the same period in the previous year, the firm earned $2.66 EPS. Analysts anticipate that Bread Financial will post 6.45 earnings per share for the current fiscal year.

Bread Financial Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 8th will be paid a $0.21 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $0.84 annualized dividend and a dividend yield of 1.33%. Bread Financial's payout ratio is 14.21%.

Institutional Trading of Bread Financial

A number of institutional investors have recently added to or reduced their stakes in BFH. Curat Global LLC acquired a new stake in shares of Bread Financial in the 1st quarter valued at $28,000. Quarry LP raised its holdings in Bread Financial by 947.5% during the first quarter. Quarry LP now owns 639 shares of the company's stock valued at $32,000 after buying an additional 578 shares in the last quarter. Pinnacle Holdings LLC acquired a new stake in shares of Bread Financial in the fourth quarter worth about $46,000. Versant Capital Management Inc boosted its stake in shares of Bread Financial by 182.8% during the 1st quarter. Versant Capital Management Inc now owns 1,298 shares of the company's stock worth $65,000 after acquiring an additional 839 shares in the last quarter. Finally, Strs Ohio bought a new stake in shares of Bread Financial during the 1st quarter worth about $65,000. 99.52% of the stock is currently owned by institutional investors and hedge funds.

Bread Financial Company Profile

Bread Financial Holdings, Inc provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit.