Zacks Research Predicts Reduced Earnings for Bread Financial

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Equities research analysts at Zacks Research dropped their FY2026 earnings per share estimates for Bread Financial in a research report issued on Monday, June 2nd. Zacks Research analyst T. De now anticipates that the company will earn $8.57 per share for the year, down from their prior forecast of $8.61. The consensus estimate for Bread Financial's current full-year earnings is $6.45 per share. Zacks Research also issued estimates for Bread Financial's Q1 2027 earnings at $1.95 EPS.

A number of other brokerages have also weighed in on BFH. The Goldman Sachs Group decreased their target price on shares of Bread Financial from $68.00 to $58.00 and set a "sell" rating for the company in a research note on Tuesday, March 18th. Jefferies Financial Group upped their price objective on Bread Financial from $45.00 to $50.00 and gave the company a "hold" rating in a research report on Thursday, April 24th. Morgan Stanley increased their target price on Bread Financial from $36.00 to $39.00 and gave the company an "underweight" rating in a report on Monday, May 12th. Finally, JMP Securities restated a "market perform" rating on shares of Bread Financial in a research note on Monday, April 28th. Three investment analysts have rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company's stock. According to data from MarketBeat.com, Bread Financial has a consensus rating of "Hold" and a consensus target price of $60.27.

Bread Financial Stock Performance

Bread Financial stock traded up $2.18 during midday trading on Thursday, reaching $51.60. 517,363 shares of the company traded hands, compared to its average volume of 872,747. Bread Financial has a 12 month low of $38.21 and a 12 month high of $66.71. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.15 and a quick ratio of 1.15. The business has a 50 day moving average of $49.05 and a two-hundred day moving average of $55.26. The firm has a market capitalization of $2.40 billion, a price-to-earnings ratio of 9.30, a price-to-earnings-growth ratio of 1.25 and a beta of 1.37.

Bread Financial (NYSE:BFH - Get Free Report) last posted its earnings results on Thursday, April 24th. The company reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.10 by $0.76. Bread Financial had a net margin of 5.75% and a return on equity of 12.41%. The business had revenue of $970.00 million for the quarter, compared to analysts' expectations of $956.17 million. During the same quarter in the prior year, the business earned $2.73 EPS. The business's revenue for the quarter was down 2.1% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Curat Global LLC purchased a new stake in Bread Financial in the 1st quarter worth approximately $28,000. Picton Mahoney Asset Management boosted its position in shares of Bread Financial by 2,083.3% in the fourth quarter. Picton Mahoney Asset Management now owns 524 shares of the company's stock worth $32,000 after purchasing an additional 500 shares during the period. Quarry LP increased its stake in shares of Bread Financial by 947.5% in the first quarter. Quarry LP now owns 639 shares of the company's stock worth $32,000 after purchasing an additional 578 shares in the last quarter. Pinnacle Holdings LLC purchased a new stake in shares of Bread Financial in the fourth quarter worth $46,000. Finally, Versant Capital Management Inc raised its position 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 valued at $65,000 after purchasing an additional 839 shares during the period. 99.52% of the stock is owned by hedge funds and other institutional investors.

Bread Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 13th. Shareholders of record on Friday, May 9th will be given a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 1.63%. The ex-dividend date of this dividend is Friday, May 9th. Bread Financial's payout ratio is 14.92%.

Bread Financial declared that its board has authorized a share repurchase plan on Wednesday, March 5th that permits the company to buyback $150.00 million in outstanding shares. This buyback authorization permits the company to buy up to 6% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

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.