Key Points
- Bread Financial CEO Ralph Andretta sold 15,000 shares on May 29 at an average price of $89.10, totaling about $1.34 million. The transaction was made under a pre-arranged Rule 10b5-1 plan.
- The sale reduced Andretta’s stake by 2.51%, though he still held 582,241 shares valued at about $51.9 million after the transaction.
- Bread Financial has been posting solid operating results, including Q1 EPS of $4.18 versus estimates of $3.00, and it also has a $600 million share repurchase authorization and a quarterly dividend of $0.23 per share.
Bread Financial Holdings, Inc. (NYSE:BFH - Get Free Report) CEO Ralph Andretta sold 15,000 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $89.10, for a total value of $1,336,500.00. Following the sale, the chief executive officer owned 582,241 shares of the company's stock, valued at $51,877,673.10. This trade represents a 2.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Bread Financial Price Performance
Shares of NYSE:BFH opened at $89.45 on Tuesday. Bread Financial Holdings, Inc. has a one year low of $49.17 and a one year high of $99.13. The stock has a fifty day moving average of $83.17 and a 200-day moving average of $76.21. The company has a market capitalization of $3.61 billion, a PE ratio of 7.33, a price-to-earnings-growth ratio of 0.84 and a beta of 1.12. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.15 and a current ratio of 1.15.
Bread Financial (NYSE:BFH - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The company reported $4.18 EPS for the quarter, beating analysts' consensus estimates of $3.00 by $1.18. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The company had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $992.05 million. During the same quarter in the prior year, the firm earned $2.86 EPS. The company's quarterly revenue was up 4.9% compared to the same quarter last year. As a group, equities analysts anticipate that Bread Financial Holdings, Inc. will post 10.59 EPS for the current fiscal year.
Bread Financial announced that its Board of Directors has approved a share repurchase plan on Thursday, February 26th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the company to reacquire up to 19% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board believes its shares are undervalued.
Bread Financial Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, May 29th. Bread Financial's dividend payout ratio is 7.53%.
Wall Street Analysts Forecast Growth
A number of research firms have recently issued reports on BFH. Morgan Stanley set a $98.00 target price on Bread Financial in a report on Friday, April 24th. Bank of America set a $92.00 target price on Bread Financial and gave the company an "overweight" rating in a report on Wednesday, March 11th. BTIG Research increased their target price on Bread Financial from $98.00 to $105.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Wall Street Zen lowered Bread Financial from a "buy" rating to a "hold" rating in a report on Saturday. Finally, Evercore restated an "outperform" rating and issued a $99.00 target price on shares of Bread Financial in a report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $94.25.
Check Out Our Latest Stock Analysis on BFH
Hedge Funds Weigh In On Bread Financial
A number of hedge funds have recently modified their holdings of the stock. AlphaQuest LLC acquired a new position in Bread Financial during the third quarter worth $1,620,000. Public Sector Pension Investment Board increased its position in Bread Financial by 12.2% during the third quarter. Public Sector Pension Investment Board now owns 209,029 shares of the company's stock worth $11,658,000 after buying an additional 22,745 shares during the last quarter. Allianz Asset Management GmbH increased its position in Bread Financial by 44.5% during the third quarter. Allianz Asset Management GmbH now owns 943,659 shares of the company's stock worth $52,628,000 after buying an additional 290,803 shares during the last quarter. Hudson Bay Capital Management LP acquired a new position in Bread Financial during the third quarter worth $14,090,000. Finally, Brooktree Capital Management increased its position in Bread Financial by 5.1% during the third quarter. Brooktree Capital Management now owns 164,084 shares of the company's stock worth $9,151,000 after buying an additional 8,002 shares during the last quarter. 99.52% of the stock is owned by institutional investors and hedge funds.
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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