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

Bread Financial Holdings, Inc. (NYSE:BFH)’s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $75.84 and last traded at $75.4650, with a volume of 160684 shares changing hands. The stock had previously closed at $74.35.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on BFH. Morgan Stanley set a $57.00 price objective on Bread Financial and gave the company an “underweight” rating in a research report on Tuesday. Keefe, Bruyette & Woods decreased their price target on shares of Bread Financial from $88.00 to $71.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 1st. Royal Bank Of Canada increased their price objective on shares of Bread Financial from $64.00 to $70.00 and gave the company a “sector perform” rating in a research note on Friday, October 24th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Bread Financial in a report on Monday. Finally, The Goldman Sachs Group increased their price target on shares of Bread Financial from $60.00 to $68.00 and gave the stock a “sell” rating in a research report on Friday, October 24th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, six have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $70.18.

Bread Financial Price Performance

The company has a debt-to-equity ratio of 0.33, a current ratio of 1.19 and a quick ratio of 1.19. The stock has a market capitalization of $3.54 billion, a price-to-earnings ratio of 7.32, a P/E/G ratio of 0.48 and a beta of 1.28. The company’s 50-day simple moving average is $65.56 and its 200-day simple moving average is $61.52.

Bread Financial (NYSE:BFH) last announced its earnings results on Thursday, October 23rd. The company reported $4.02 EPS for the quarter, topping the consensus estimate of $2.11 by $1.91. Bread Financial had a net margin of 10.08% and a return on equity of 15.97%. The company had revenue of $161.00 million for the quarter, compared to analysts’ expectations of $974.30 million. During the same period last year, the firm earned $1.83 earnings per share. The business’s revenue for the quarter was down 1.2% on a year-over-year basis. Research analysts forecast that Bread Financial Holdings, Inc. will post 6.45 earnings per share for the current fiscal year.

Bread Financial Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, December 12th. Stockholders of record on Friday, November 7th were paid a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Friday, November 7th. This is a positive change from Bread Financial’s previous quarterly dividend of $0.21. Bread Financial’s dividend payout ratio is 9.37%.

Bread Financial declared that its board has approved a share repurchase program on Wednesday, August 27th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in BFH. Northwestern Mutual Wealth Management Co. increased its holdings 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 purchasing an additional 329 shares in the last quarter. Quarry LP lifted its holdings in Bread Financial by 947.5% during the 1st quarter. Quarry LP now owns 639 shares of the company’s stock worth $32,000 after buying an additional 578 shares during the period. EverSource Wealth Advisors LLC grew its position in shares of Bread Financial by 127.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock valued at $41,000 after buying an additional 398 shares during the last quarter. BOK Financial Private Wealth Inc. acquired a new stake in shares of Bread Financial in the second quarter valued at about $42,000. Finally, Caitong International Asset Management Co. Ltd raised its position in shares of 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 worth $47,000 after acquiring an additional 830 shares during the last quarter. Institutional investors own 99.52% of the company’s stock.

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.