Bread Financial Holdings, Inc. (NYSE:BFH) Short Interest Update

Bread Financial Holdings, Inc. (NYSE:BFH) was the target of a large decline in short interest in December. As of December 31st, there was short interest totaling 4,301,514 shares, a decline 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

Large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. increased its position in shares of Bread Financial by 141.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock valued at $31,000 after buying an additional 329 shares during the period. EverSource Wealth Advisors LLC increased its holdings in 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 acquiring an additional 398 shares during the period. BOK Financial Private Wealth Inc. purchased a new stake in Bread Financial in the 2nd quarter worth approximately $42,000. Caitong International Asset Management Co. Ltd boosted its stake 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 buying an additional 830 shares during the period. Finally, Quarry LP increased its position in shares of Bread Financial by 1,509.1% in the third quarter. Quarry LP now owns 885 shares of the company’s stock worth $49,000 after purchasing an additional 830 shares during the last quarter. Institutional investors own 99.52% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently commented on BFH. Weiss Ratings reissued a “buy (b-)” rating on shares of Bread Financial in a research report on Monday, December 29th. JPMorgan Chase & Co. restated an “underweight” rating and set a $72.00 price objective on shares of Bread Financial in a research note on Thursday, December 4th. Barclays lifted their price objective 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. UBS Group started coverage on shares of Bread Financial in a report on Thursday, January 8th. They issued a “buy” rating and a $92.00 target price for the company. Finally, Cowen restated a “hold” rating on shares of Bread Financial in a report on Thursday, January 8th. Five analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $79.08.

Bread Financial Stock Up 4.4%

Bread Financial stock opened at $73.78 on Monday. The firm has a 50 day moving average price of $71.45 and a 200-day moving average price of $64.87. 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 twelve month low of $38.21 and a twelve month high of $82.03. The company has a market capitalization of $3.37 billion, a P/E ratio of 7.51, a P/E/G ratio of 0.49 and a beta of 1.27.

Bread Financial (NYSE:BFH) last announced its quarterly earnings data on Thursday, October 23rd. The company reported $4.02 earnings per share for the quarter, topping the consensus estimate of $2.11 by $1.91. The company had revenue of $1.24 billion during 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 firm’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 EPS. As a group, equities analysts predict that Bread Financial will post 6.45 EPS for the current year.

Bread Financial declared that its Board of Directors has authorized a stock buyback plan on Thursday, October 23rd that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 7.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

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 issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 1.2%. 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 presently 9.37%.

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.