Bread Financial (NYSE:BFH) Stock Rating Upgraded by Wall Street Zen

Bread Financial (NYSE:BFH) was upgraded by Wall Street Zen from a “hold” rating to a “buy” rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other equities research analysts also recently weighed in on the company. Zacks Research downgraded Bread Financial from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Weiss Ratings restated a “buy (b)” rating on shares of Bread Financial in a report on Thursday. Evercore set a $118.00 price objective on Bread Financial in a report on Thursday, October 1st. Wolfe Research raised Bread Financial from a “peer perform” rating to an “outperform” rating and set a $130.00 price objective on the stock in a research report on Tuesday, August 25th. Finally, UBS Group increased their target price on Bread Financial from $120.00 to $127.00 and gave the stock a “buy” rating in a research note on Monday, August 3rd. Eight research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $112.21.

Bread Financial Stock Performance

Shares of NYSE:BFH opened at $99.72 on Friday. The company has a market capitalization of $3.83 billion, a price-to-earnings ratio of 7.86, a PEG ratio of 0.78 and a beta of 1.15. Bread Financial has a 12 month low of $59.26 and a 12 month high of $114.53. The firm’s 50-day moving average is $104.36 and its 200 day moving average is $98.84. The company has a current ratio of 1.16, a quick ratio of 1.17 and a debt-to-equity ratio of 0.24.

Bread Financial (NYSE:BFH) last posted its quarterly earnings data on Thursday, October 22nd. The company reported $3.84 earnings per share for the quarter, topping analysts’ consensus estimates of $3.34 by $0.50. Bread Financial had a net margin of 11.19% and a return on equity of 17.24%. The company had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.01 billion. During the same period in the prior year, the company posted $4.02 EPS. The firm’s revenue for the quarter was up 4.7% on a year-over-year basis. Research analysts predict that Bread Financial will post 12.31 EPS for the current year.

Insider Activity at Bread Financial

In other news, Director Praniti Lakhwara sold 2,802 shares of Bread Financial stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $106.12, for a total transaction of $297,348.24. Following the completion of the sale, the director owned 4,458 shares of the company’s stock, valued at approximately $473,082.96. The trade was a 38.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. purchased a new position in Bread Financial during the 2nd quarter worth $30,000. Root Financial Partners LLC bought a new stake in Bread Financial during the 3rd quarter valued at $45,000. USA Financial Formulas purchased a new stake in shares of Bread Financial in the 3rd quarter worth $46,000. IFP Advisors Inc lifted its holdings in shares of Bread Financial by 125.8% in the 2nd quarter. IFP Advisors Inc now owns 490 shares of the company’s stock worth $53,000 after buying an additional 273 shares during the period. Finally, Pacer Advisors Inc. lifted its holdings in shares of Bread Financial by 58.7% in the 1st quarter. Pacer Advisors Inc. now owns 614 shares of the company’s stock worth $46,000 after buying an additional 227 shares during the period. Institutional investors own 99.52% of the company’s stock.

Key Stories Impacting Bread Financial

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: Q3 earnings exceeded expectations: Bread Financial reported adjusted earnings of $3.84 per share, beating the $3.34 consensus estimate, while revenue rose 4.7% year over year to $1.02 billion, slightly above expectations. Q3 revenue report
• Positive Sentiment: Dividend increased: The company raised its quarterly common-stock dividend 8.7% to $0.25 per share, payable December 15 to shareholders of record November 30. The board also declared dividends on both series of preferred stock, signaling continued shareholder returns. Dividend announcement
• Positive Sentiment: Sephora partnership renewed: Bread Financial signed a long-term renewal with Sephora to support its credit-card and loyalty program, preserving an important branded payments relationship. Sephora renewal
• Neutral Sentiment: Analyst target raised, but rating remains Hold: TD Cowen increased its price target from $111 to $113, implying substantial upside from recent levels, while maintaining a “hold” recommendation.
• Neutral Sentiment: 2026 revenue outlook is in line: Bread Financial reiterated revenue guidance of approximately $4.0 billion, matching consensus and offering limited evidence of an upside forecast revision.
• Negative Sentiment: Year-over-year earnings declined: Q3 earnings fell from $4.02 per share a year earlier to $3.84, tempering the impact of the earnings beat and raising questions about profitability trends.
• Negative Sentiment: Credit performance remains a focus: Bread Financial issued a September update covering net principal loss and delinquency rates. Investors will scrutinize those metrics because deterioration could increase provisions and pressure future earnings. September performance update

Bread Financial Company Profile

Bread Financial Holdings, Inc (NYSE: BFH) is a financial services company that provides payment, lending and savings solutions to consumers and businesses. Its offerings include private-label and co-branded credit cards, installment lending, buy now, pay later services and deposit products.

The company operates through its Bread platform, which supports merchants with financing options, payment processing and customer loyalty solutions. Its consumer products have included Bread Cashback credit cards, Bread Pay installment payment services and Bread Savings deposit accounts.

Bread Financial primarily serves consumers and merchants in the United States, with solutions designed for retail, travel, home improvement and other industries.