Bread Financial Holdings, Inc. (NYSE:BFH) Short Interest Down 17.2% in December

Bread Financial Holdings, Inc. (NYSE:BFH) was the recipient of a large decrease in short interest during the month of December. As of December 31st, there was short interest totaling 4,301,514 shares, a decrease of 17.2% from the December 15th total of 5,195,900 shares. Approximately 9.5% of the company’s stock are short sold. Based on an average daily volume of 668,189 shares, the days-to-cover ratio is currently 6.4 days. Based on an average daily volume of 668,189 shares, the days-to-cover ratio is currently 6.4 days. Approximately 9.5% of the company’s stock are short sold.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. raised its stake in shares of Bread Financial by 141.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock worth $31,000 after purchasing an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in Bread Financial by 127.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock worth $41,000 after buying an additional 398 shares during the period. BOK Financial Private Wealth Inc. acquired a new position in Bread Financial in the 2nd quarter worth approximately $42,000. Caitong International Asset Management Co. Ltd raised its position in Bread Financial by 8,300.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock worth $47,000 after buying an additional 830 shares during the last quarter. Finally, Salomon & Ludwin LLC lifted its stake in Bread Financial by 136.2% during the 3rd quarter. Salomon & Ludwin LLC now owns 888 shares of the company’s stock valued at $49,000 after acquiring an additional 512 shares during the period. 99.52% of the stock is owned by institutional investors and hedge funds.

Bread Financial Stock Performance

Shares of Bread Financial stock opened at $69.93 on Wednesday. The company has a 50 day moving average price of $71.78 and a 200 day moving average price of $65.03. The firm has a market capitalization of $3.19 billion, a P/E ratio of 7.12, a PEG ratio of 0.49 and a beta of 1.27. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.33. Bread Financial has a 52 week low of $38.21 and a 52 week high of $82.03.

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

Bread Financial declared that its Board of Directors has initiated a share buyback program on Thursday, October 23rd that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the company to reacquire up to 7.1% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Bread Financial Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, December 12th. Investors of record on Friday, November 7th were given a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, November 7th. This is a positive change from Bread Financial’s previous quarterly dividend of $0.21. Bread Financial’s payout ratio is currently 9.37%.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on BFH. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $83.00 target price on shares of Bread Financial in a report on Monday, January 12th. Evercore ISI set a $81.00 price objective on shares of Bread Financial in a research note on Tuesday, January 6th. Weiss Ratings reissued a “buy (b-)” rating on shares of Bread Financial in a research report on Monday, December 29th. The Goldman Sachs Group upgraded shares of Bread Financial from a “sell” rating to a “hold” rating and set a $84.00 target price for the company in a research note on Tuesday, January 6th. Finally, Barclays lifted their price target on shares of Bread Financial from $52.00 to $61.00 and gave the stock an “underweight” rating in a report on Tuesday, January 6th. Four research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $78.82.

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.