Key Points
- Director Roger Ballou sold 9,687 shares of Bread Financial on April 24 at an average price of $90.32 for about $874,930, trimming his stake by 24.36% to 30,079 shares (worth roughly $2.72M).
- Bread Financial topped expectations with Q earnings of $4.18 EPS vs. a $3.00 consensus and revenue of $1.02B (up 4.9% year-over-year), with a return on equity of 18.79% and a net margin of 11.9%.
- Management approved a $600M buyback (up to ~19% of shares) and declared a quarterly dividend of $0.23 per share (annualized $0.92, ~1.0% yield; ex-dividend May 29, payable June 15).
Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) Director Roger Ballou sold 9,687 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $90.32, for a total value of $874,929.84. Following the sale, the director directly owned 30,079 shares of the company's stock, valued at $2,716,735.28. The trade was a 24.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink.
Bread Financial Stock Up 2.2%
BFH stock opened at $88.03 on Tuesday. The stock has a market cap of $3.65 billion, a P/E ratio of 7.21, a P/E/G ratio of 1.27 and a beta of 1.11. The company has a current ratio of 1.15, a quick ratio of 1.17 and a debt-to-equity ratio of 0.25. The stock's fifty day simple moving average is $76.90 and its two-hundred day simple moving average is $72.18. Bread Financial Holdings, Inc. has a 1-year low of $46.04 and a 1-year high of $99.13.
Bread Financial (NYSE:BFH - Get Free Report) last announced its earnings results on Thursday, April 23rd. The company reported $4.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.00 by $1.18. The firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $992.05 million. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The business's revenue was up 4.9% compared to the same quarter last year. During the same period last year, the firm posted $2.86 EPS. Analysts expect that Bread Financial Holdings, Inc. will post 9.79 EPS for the current year.
Bread Financial Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 29th will be issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Friday, May 29th. Bread Financial's dividend payout ratio (DPR) is 7.53%.
Bread Financial announced that its Board of Directors has approved a stock repurchase program on Thursday, February 26th that authorizes the company to repurchase $600.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 19% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board believes its stock is undervalued.
Institutional Trading of Bread Financial
Institutional investors and hedge funds have recently bought and sold shares of the company. Daiwa Securities Group Inc. raised its stake in shares of Bread Financial by 5.6% during the fourth quarter. Daiwa Securities Group Inc. now owns 3,535 shares of the company's stock valued at $262,000 after acquiring an additional 187 shares during the last quarter. Arizona State Retirement System grew its stake in shares of Bread Financial by 1.4% in the third quarter. Arizona State Retirement System now owns 14,527 shares of the company's stock worth $810,000 after purchasing an additional 200 shares during the last quarter. Illinois Municipal Retirement Fund increased its holdings in Bread Financial by 0.9% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 25,186 shares of the company's stock valued at $1,405,000 after purchasing an additional 213 shares during the period. Vista Investment Management increased its holdings in Bread Financial by 1.1% during the 4th quarter. Vista Investment Management now owns 22,858 shares of the company's stock valued at $1,692,000 after purchasing an additional 241 shares during the period. Finally, Corient Private Wealth LLC raised its position in Bread Financial by 6.6% during the 4th quarter. Corient Private Wealth LLC now owns 4,206 shares of the company's stock valued at $311,000 after purchasing an additional 259 shares during the last quarter. 99.52% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades
A number of research analysts have recently weighed in on BFH shares. Weiss Ratings reissued a "buy (b-)" rating on shares of Bread Financial in a research report on Friday, March 27th. Barclays lifted their price target on shares of Bread Financial from $67.00 to $70.00 and gave the stock an "underweight" rating in a report on Friday. UBS Group started coverage on Bread Financial in a report on Thursday, January 8th. They set a "buy" rating and a $92.00 price objective for the company. TD Cowen boosted their target price on Bread Financial from $80.00 to $95.00 and gave the company a "hold" rating in a research note on Friday. Finally, Morgan Stanley set a $98.00 price target on Bread Financial in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Bread Financial has a consensus rating of "Hold" and an average price target of $92.55.
Read Our Latest Research Report on Bread Financial
Bread Financial Company Profile
(
Get Free Report)
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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