Bread Financial (NYSE:BFH) Hits New 1-Year High – Still a Buy?

Bread Financial Holdings, Inc. (NYSE:BFH) shares reached a new 52-week high during trading on Wednesday . The stock traded as high as $68.17 and last traded at $68.0950, with a volume of 126308 shares traded. The stock had previously closed at $66.77.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Keefe, Bruyette & Woods cut their target price on Bread Financial from $88.00 to $71.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 1st. Zacks Research raised shares of Bread Financial from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 27th. Cowen reaffirmed a “hold” rating on shares of Bread Financial in a research report on Friday, October 24th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Bread Financial in a research note on Tuesday. Finally, Wall Street Zen downgraded shares of Bread Financial from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 9th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $70.00.

Bread Financial Trading Up 1.2%

The company has a 50 day moving average of $61.07 and a two-hundred day moving average of $59.43. The stock has a market capitalization of $3.08 billion, a PE ratio of 6.88, a P/E/G ratio of 0.50 and a beta of 1.51. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.18 and a current ratio of 1.19.

Bread Financial (NYSE:BFH) last issued its quarterly earnings results on Thursday, October 23rd. The company reported $4.02 earnings per share for the quarter, topping the consensus estimate of $2.11 by $1.91. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.The business had revenue of $161.00 million during the quarter, compared to the consensus estimate of $974.30 million. During the same quarter last year, the company earned $1.83 earnings per share. The company’s quarterly revenue was down 1.2% on a year-over-year basis. Bread Financial has set its FY 2025 guidance at EPS. Sell-side analysts predict that Bread Financial Holdings, Inc. will post 6.45 EPS for the current year.

Bread Financial Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 12th. Shareholders of record on Friday, November 7th will be given a dividend of $0.23 per share. The ex-dividend date of this dividend is Friday, November 7th. This represents a $0.92 annualized dividend and a yield of 1.4%. This is a boost from Bread Financial’s previous quarterly dividend of $0.21. Bread Financial’s payout ratio is presently 9.37%.

Bread Financial declared that its Board of Directors has initiated a share buyback plan on Wednesday, August 27th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Bread Financial

A number of large investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. raised its stake in Bread Financial by 141.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock worth $31,000 after acquiring an additional 329 shares during the last quarter. Quarry LP increased its holdings in shares of Bread Financial by 947.5% in the first quarter. Quarry LP now owns 639 shares of the company’s stock valued at $32,000 after purchasing an additional 578 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of Bread Financial by 127.2% in the second quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock worth $41,000 after purchasing an additional 398 shares during the last quarter. BOK Financial Private Wealth Inc. acquired a new stake in shares of Bread Financial during the second quarter worth about $42,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in Bread Financial by 8,300.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock valued at $47,000 after buying an additional 830 shares during the last quarter. 99.52% of the stock is owned by hedge funds and other institutional investors.

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.