Bread Financial (NYSE:BFH) Upgraded to “Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Bread Financial (NYSE:BFH) from a hold rating to a buy rating in a research report released on Saturday morning,Wall Street Zen reports.

Several other equities analysts have also commented on BFH. TD Cowen increased their price objective on shares of Bread Financial from $111.00 to $113.00 and gave the company a “hold” rating in a research report on Friday. Seaport Research Partners set a $123.00 price objective on shares of Bread Financial in a research note on Friday. Barclays reduced their target price on shares of Bread Financial from $110.00 to $107.00 and set an “equal weight” rating on the stock in a report on Friday. Wolfe Research upgraded shares of Bread Financial from a “peer perform” rating to an “outperform” rating and set a $130.00 target price on the stock in a research report on Tuesday, August 25th. Finally, Zacks Research downgraded shares of Bread Financial from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Eight investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $112.21.

Bread Financial Stock Down 2.7%

NYSE BFH opened at $99.72 on Friday. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.17 and a current ratio of 1.16. The company has a market capitalization of $3.83 billion, a P/E ratio of 7.86, a P/E/G ratio of 0.79 and a beta of 1.15. Bread Financial has a one year low of $59.26 and a one year high of $114.53. The stock has a 50 day moving average price of $104.36 and a 200-day moving average price of $98.67.

Bread Financial (NYSE:BFH) last posted its earnings results on Thursday, October 22nd. The company reported $3.84 earnings per share for the quarter, beating 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 firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.01 billion. During the same period last year, the firm posted $4.02 earnings per share. Bread Financial’s revenue for the quarter was up 4.7% compared to the same quarter last year. As a group, equities analysts predict that Bread Financial will post 12.31 EPS for the current fiscal year.

Bread Financial Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.0%. The ex-dividend date is Monday, November 30th. This is a boost from Bread Financial’s previous quarterly dividend of $0.23. Bread Financial’s payout ratio is currently 7.89%.

Insider Transactions at Bread Financial

In related news, Director Praniti Lakhwara sold 2,802 shares of the firm’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $106.12, for a total value of $297,348.24. Following the completion of the sale, the director directly owned 4,458 shares in the company, valued at $473,082.96. This trade represents a 38.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Bread Financial

Several hedge funds and other institutional investors have recently made changes to their positions in BFH. Fifth Third Bancorp grew its holdings in Bread Financial by 5,814.5% during the 1st quarter. Fifth Third Bancorp now owns 17,566 shares of the company’s stock valued at $1,315,000 after purchasing an additional 17,269 shares during the last quarter. Walleye Capital LLC purchased a new stake in Bread Financial in the 2nd quarter worth about $9,903,000. BlackRock Inc. purchased a new stake in Bread Financial in the 2nd quarter worth about $421,314,000. Bank of America Corp DE raised its position in Bread Financial by 18.1% in the 1st quarter. Bank of America Corp DE now owns 630,225 shares of the company’s stock worth $47,198,000 after purchasing an additional 96,771 shares during the period. Finally, California State Teachers Retirement System lifted its stake in Bread Financial by 23.6% in the first quarter. California State Teachers Retirement System now owns 54,175 shares of the company’s stock worth $4,057,000 after purchasing an additional 10,347 shares during the last quarter. Hedge funds and other institutional investors own 99.52% of the company’s stock.

Key Bread Financial News

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.