Zacks Research Predicts Higher Earnings for Bread Financial

Bread Financial Holdings, Inc. (NYSE:BFH) – Research analysts at Zacks Research boosted their FY2027 earnings per share estimates for shares of Bread Financial in a report issued on Thursday, August 28th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $9.66 for the year, up from their previous forecast of $9.60. The consensus estimate for Bread Financial’s current full-year earnings is $6.45 per share.

Bread Financial (NYSE:BFH) last released its earnings results on Thursday, July 24th. The company reported $3.14 EPS for the quarter, topping analysts’ consensus estimates of $1.85 by $1.29. The company had revenue of $929.00 million for the quarter, compared to analysts’ expectations of $944.69 million. Bread Financial had a return on equity of 13.10% and a net margin of 6.05%.The business’s revenue for the quarter was down 1.1% compared to the same quarter last year. During the same period in the previous year, the business posted $2.66 EPS. Bread Financial has set its FY 2025 guidance at EPS.

BFH has been the subject of a number of other reports. Royal Bank Of Canada increased their target price on shares of Bread Financial from $65.00 to $74.00 and gave the company a “sector perform” rating in a research report on Friday, July 25th. Wall Street Zen downgraded Bread Financial from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 9th. BTIG Research set a $105.00 target price on Bread Financial and gave the stock a “buy” rating in a research report on Monday, July 14th. Barclays restated an “underweight” rating and issued a $52.00 target price (up from $45.00) on shares of Bread Financial in a research note on Tuesday, July 8th. Finally, Morgan Stanley increased their price target on Bread Financial from $36.00 to $39.00 and gave the stock an “underweight” rating in a research note on Monday, May 12th. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Bread Financial has a consensus rating of “Hold” and an average target price of $64.91.

Bread Financial Stock Performance

NYSE BFH opened at $65.51 on Monday. The company has a market capitalization of $3.06 billion, a PE ratio of 11.08, a price-to-earnings-growth ratio of 1.04 and a beta of 1.46. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.18 and a current ratio of 1.18. Bread Financial has a 52-week low of $38.21 and a 52-week high of $67.33. The company has a 50-day simple moving average of $60.98 and a 200 day simple moving average of $54.21.

Bread Financial announced that its Board of Directors has initiated a share buyback program on Wednesday, August 27th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Bread Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 8th will be paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Friday, August 8th. Bread Financial’s payout ratio is presently 14.21%.

Insider Transactions at Bread Financial

In related news, Director John J. Fawcett bought 1,027 shares of the business’s stock in a transaction on Wednesday, July 30th. The stock was acquired at an average price of $61.79 per share, for a total transaction of $63,458.33. Following the purchase, the director directly owned 10,302 shares in the company, valued at $636,560.58. This trade represents a 11.07% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.62% of the company’s stock.

Institutional Investors Weigh In On Bread Financial

A number of institutional investors and hedge funds have recently modified their holdings of BFH. Public Sector Pension Investment Board boosted its position in shares of Bread Financial by 0.7% in the second quarter. Public Sector Pension Investment Board now owns 186,284 shares of the company’s stock valued at $10,641,000 after acquiring an additional 1,294 shares during the period. Headlands Technologies LLC purchased a new stake in Bread Financial in the 2nd quarter worth approximately $184,000. Tower Research Capital LLC TRC boosted its holdings in Bread Financial by 373.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,554 shares of the company’s stock valued at $374,000 after purchasing an additional 5,171 shares during the period. Corient Private Wealth LLC purchased a new position in shares of Bread Financial during the 2nd quarter valued at $220,000. Finally, Oxford Asset Management LLP grew its position in shares of Bread Financial by 96.3% during the 2nd quarter. Oxford Asset Management LLP now owns 9,831 shares of the company’s stock valued at $562,000 after purchasing an additional 4,823 shares in the last quarter. 99.52% of the stock is owned by hedge funds and other institutional investors.

About Bread Financial

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.