Bread Financial (NYSE:BFH) Reaches New 12-Month High – Here’s Why

Bread Financial Holdings, Inc. (NYSE:BFH) shares hit a new 52-week high on Tuesday . The stock traded as high as $80.21 and last traded at $79.8850, with a volume of 307737 shares trading hands. The stock had previously closed at $76.30.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Bread Financial in a research note on Monday, December 29th. Keefe, Bruyette & Woods upped their target price on Bread Financial from $82.00 to $92.00 and gave the company an “outperform” rating in a research note on Friday, January 2nd. JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $72.00 price target on shares of Bread Financial in a report on Thursday, December 4th. Morgan Stanley set a $57.00 price objective on Bread Financial and gave the company an “underweight” rating in a report on Tuesday, December 16th. Finally, Cowen reaffirmed a “hold” rating on shares of Bread Financial in a research report on Thursday. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Bread Financial currently has an average rating of “Hold” and a consensus target price of $78.00.

Bread Financial Trading Up 1.5%

The firm has a market capitalization of $3.71 billion, a P/E ratio of 8.27, a price-to-earnings-growth ratio of 0.56 and a beta of 1.27. The stock has a 50-day simple moving average of $70.35 and a two-hundred day simple moving average of $64.11. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.33.

Bread Financial (NYSE:BFH) last announced its quarterly earnings results on Thursday, October 23rd. The company reported $4.02 EPS for the quarter, beating the consensus estimate of $2.11 by $1.91. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $974.30 million. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.The business’s revenue for the quarter was down 1.2% on a year-over-year basis. During the same quarter last year, the firm posted $1.83 earnings per share. On average, equities research analysts anticipate that Bread Financial Holdings, Inc. will post 6.45 earnings per share for the current year.

Bread Financial Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, December 12th. Shareholders of record on Friday, November 7th were given a dividend of $0.23 per share. This is a positive change from Bread Financial’s previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Friday, November 7th. This represents a $0.92 dividend on an annualized basis and a yield of 1.1%. Bread Financial’s payout ratio is 9.37%.

Bread Financial announced that its board has approved a stock repurchase plan on Thursday, October 23rd that allows the company to repurchase $200.00 million in shares. This repurchase authorization allows the company to buy up to 7.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Bread Financial

Several institutional investors have recently bought and sold shares of BFH. Northwestern Mutual Wealth Management Co. lifted its holdings in Bread Financial by 141.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock worth $31,000 after buying an additional 329 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Bread Financial by 127.2% during the 2nd 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. purchased a new stake in shares of Bread Financial during the 2nd quarter worth $42,000. Caitong International Asset Management Co. Ltd boosted its position in Bread Financial by 8,300.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock valued at $47,000 after purchasing an additional 830 shares in the last quarter. Finally, Salomon & Ludwin LLC grew its stake in Bread Financial by 136.2% in the third quarter. Salomon & Ludwin LLC now owns 888 shares of the company’s stock valued at $49,000 after purchasing an additional 512 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, 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.