Bread Financial (NYSE:BFH) Hits New 52-Week High – Here’s Why

Bread Financial Holdings, Inc. (NYSE:BFH)’s share price reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $110.14 and last traded at $108.03, with a volume of 402946 shares. The stock had previously closed at $107.78.

Analysts Set New Price Targets

BFH has been the subject of several research reports. Seaport Research Partners restated a “buy” rating and issued a $119.00 price target on shares of Bread Financial in a research note on Monday. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $115.00 target price on shares of Bread Financial in a report on Friday, July 24th. Zacks Research downgraded Bread Financial from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Barclays increased their price target on Bread Financial from $104.00 to $109.00 and gave the company an “equal weight” rating in a research report on Friday, July 24th. Finally, Wall Street Zen raised Bread Financial from a “hold” rating to a “buy” rating in a research report on Saturday, June 13th. Eight equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Bread Financial currently has an average rating of “Hold” and a consensus price target of $110.00.

Bread Financial Stock Up 3.7%

The stock has a market cap of $4.26 billion, a PE ratio of 8.66, a price-to-earnings-growth ratio of 0.69 and a beta of 1.10. The firm has a fifty day moving average of $99.09 and a 200 day moving average of $84.98. The company has a quick ratio of 1.15, a current ratio of 1.17 and a debt-to-equity ratio of 0.25.

Bread Financial (NYSE:BFH) last announced its quarterly earnings results on Thursday, July 23rd. The company reported $3.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.74 by $0.81. The company had revenue of $992.00 million during the quarter, compared to the consensus estimate of $959.32 million. Bread Financial had a return on equity of 18.42% and a net margin of 11.95%.Bread Financial’s revenue for the quarter was up 6.9% on a year-over-year basis. During the same period in the previous year, the business earned $3.15 EPS. On average, equities research analysts anticipate that Bread Financial Holdings, Inc. will post 11.82 EPS for the current fiscal year.

Bread Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Monday, August 31st will be paid a dividend of $0.23 per share. The ex-dividend date is Monday, August 31st. This represents a $0.92 annualized dividend and a yield of 0.8%. Bread Financial’s payout ratio is presently 7.18%.

Insider Activity at Bread Financial

In related news, Director John J. Fawcett purchased 698 shares of the company’s stock in a transaction on Thursday, May 21st. The shares were bought at an average cost of $86.43 per share, for a total transaction of $60,328.14. Following the completion of the purchase, the director directly owned 11,000 shares of the company’s stock, valued at approximately $950,730. This trade represents a 6.78% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Praniti Lakhwara sold 2,802 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $106.12, for a total transaction of $297,348.24. Following the sale, the director directly owned 4,458 shares in the company, valued at approximately $473,082.96. The trade was a 38.60% decrease in their position. The SEC filing for this sale provides additional information. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Bread Financial

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Dimensional Fund Advisors LP grew its holdings in shares of Bread Financial by 0.3% during the first quarter. Dimensional Fund Advisors LP now owns 3,086,060 shares of the company’s stock worth $231,111,000 after purchasing an additional 9,854 shares during the last quarter. Franklin Resources Inc. boosted its position in shares of Bread Financial by 17.3% in the 4th quarter. Franklin Resources Inc. now owns 2,029,894 shares of the company’s stock valued at $150,273,000 after purchasing an additional 299,439 shares during the period. Geode Capital Management LLC grew its stake in Bread Financial by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 1,159,731 shares of the company’s stock worth $85,866,000 after buying an additional 14,257 shares during the last quarter. Allianz Asset Management GmbH increased its position in Bread Financial by 21.6% during the fourth quarter. Allianz Asset Management GmbH now owns 1,147,366 shares of the company’s stock worth $84,940,000 after buying an additional 203,707 shares during the period. Finally, Hsbc Holdings PLC lifted its stake in Bread Financial by 14.7% in the first quarter. Hsbc Holdings PLC now owns 1,009,890 shares of the company’s stock valued at $74,667,000 after buying an additional 129,774 shares during the last quarter. 99.52% of the stock is owned by hedge funds and other institutional investors.

About Bread Financial

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.