Zacks Research Raises Earnings Estimates for Bread Financial

Key Points

• Zacks Research has increased its FY2027 earnings per share estimate for Bread Financial from $9.60 to $9.66, while the current consensus for the full-year earnings is $6.45 per share.
• The company announced a quarterly dividend of $0.21, which will be paid on September 12th, representing an annualized dividend yield of 1.3%.
• Bread Financial's stock currently has a consensus rating of "Hold" with a target price of $64.91, according to MarketBeat.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Equities researchers at Zacks Research boosted their FY2027 earnings per share estimates for Bread Financial in a research note issued to investors on Thursday, August 28th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $9.66 for the year, up from their previous estimate of $9.60. The consensus estimate for Bread Financial's current full-year earnings is $6.45 per share.

Bread Financial (NYSE:BFH - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The company reported $3.14 EPS for the quarter, beating the consensus estimate of $1.85 by $1.29. The firm had revenue of $929.00 million for the quarter, compared to analyst estimates of $944.69 million. Bread Financial had a return on equity of 13.10% and a net margin of 6.05%.The business's revenue for the quarter was down 1.1% on a year-over-year basis. During the same quarter last year, the firm posted $2.66 earnings per share. Bread Financial has set its FY 2025 guidance at EPS.

BFH has been the topic of several other research reports. Morgan Stanley lifted their target price on Bread Financial from $36.00 to $39.00 and gave the company an "underweight" rating in a research note on Monday, May 12th. BTIG Research set a $105.00 price target on Bread Financial and gave the stock a "buy" rating in a research note on Monday, July 14th. Barclays reiterated an "underweight" rating and issued a $52.00 target price (up previously from $45.00) on shares of Bread Financial in a research report on Tuesday, July 8th. Royal Bank Of Canada upped their target price on Bread Financial from $65.00 to $74.00 and gave the company a "sector perform" rating in a research report on Friday, July 25th. Finally, Wall Street Zen lowered Bread Financial from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 9th. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $64.91.

Bread Financial Stock Performance

Shares of Bread Financial stock opened at $66.23 on Monday. The stock's fifty day moving average price is $60.56 and its 200-day moving average price is $54.10. Bread Financial has a 12 month low of $38.21 and a 12 month high of $67.33. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 0.36. The firm has a market cap of $3.09 billion, a P/E ratio of 11.21, a P/E/G ratio of 1.04 and a beta of 1.46.

Bread Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Stockholders of record on Friday, August 8th will be paid a $0.21 dividend. This represents a $0.84 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Friday, August 8th. Bread Financial's dividend payout ratio (DPR) is presently 14.21%.

Bread Financial declared that its board has initiated a share buyback plan on Wednesday, August 27th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Insider Activity

In other Bread Financial news, Director John J. Fawcett bought 1,027 shares of the firm's stock in a transaction that occurred on Wednesday, July 30th. The stock was purchased at an average price of $61.79 per share, for a total transaction of $63,458.33. Following the completion of the purchase, the director directly owned 10,302 shares in the company, valued at $636,560.58. This trade represents a 11.07% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.62% of the company's stock.

Institutional Investors Weigh In On Bread Financial

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BFH. Franklin Resources Inc. increased its holdings in shares of Bread Financial by 16.9% in the second quarter. Franklin Resources Inc. now owns 1,720,613 shares of the company's stock valued at $98,281,000 after purchasing an additional 248,401 shares during the period. Castlekeep Investment Advisors LLC acquired a new position in shares of Bread Financial in the fourth quarter valued at approximately $104,000. American Century Companies Inc. increased its holdings in shares of Bread Financial by 2.0% in the second quarter. American Century Companies Inc. now owns 1,490,745 shares of the company's stock valued at $85,151,000 after purchasing an additional 28,901 shares during the period. Wellington Management Group LLP increased its holdings in shares of Bread Financial by 45.0% in the first quarter. Wellington Management Group LLP now owns 1,320,418 shares of the company's stock valued at $66,127,000 after purchasing an additional 409,877 shares during the period. Finally, Jacobs Levy Equity Management Inc. increased its holdings in shares of Bread Financial by 10.7% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,241,566 shares of the company's stock valued at $75,810,000 after purchasing an additional 120,237 shares during the period. Hedge funds and other institutional investors own 99.52% of the company's stock.

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.

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