Share Repurchase Plan Initiated by Bread Financial (NYSE:BFH)

Bread Financial (NYSE:BFH) declared that its Board of Directors has authorized a share repurchase plan on Thursday, October 23rd, RTT News reports. The company plans to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 7.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on BFH. Wall Street Zen lowered Bread Financial from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 9th. BTIG Research set a $105.00 price target on shares of Bread Financial and gave the stock a “buy” rating in a research note on Monday, July 14th. Weiss Ratings restated a “hold (c+)” rating on shares of Bread Financial in a research note on Friday. Cowen reaffirmed a “hold” rating on shares of Bread Financial in a report on Friday. Finally, TD Cowen upped their target price on shares of Bread Financial from $63.00 to $68.00 and gave the company a “hold” rating in a report on Friday. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $69.27.

Bread Financial Stock Performance

NYSE BFH opened at $65.54 on Friday. Bread Financial has a 1-year low of $38.21 and a 1-year high of $68.01. The business’s 50-day simple moving average is $61.16 and its 200-day simple moving average is $56.75. The firm has a market capitalization of $3.06 billion, a P/E ratio of 6.67, a P/E/G ratio of 0.59 and a beta of 1.41. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.19 and a quick ratio of 1.18.

Bread Financial (NYSE:BFH) last posted its quarterly earnings data on Thursday, October 23rd. The company reported $4.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.11 by $1.91. The company had revenue of $971.00 million for the quarter, compared to the consensus estimate of $974.30 million. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.Bread Financial’s revenue for the quarter was down 1.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.83 EPS. Bread Financial has set its FY 2025 guidance at EPS. Equities analysts predict that Bread Financial will post 6.45 EPS for the current year.

Bread Financial Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 12th. Stockholders of record on Friday, November 7th will be given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is 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 14.21%.

Insider Transactions at Bread Financial

In related news, Director John J. Fawcett bought 1,027 shares of the company’s stock in a transaction on Wednesday, July 30th. The shares were purchased at an average cost of $61.79 per share, with a total value of $63,458.33. Following the completion of the transaction, the director directly owned 10,302 shares of the company’s stock, valued at approximately $636,560.58. This represents a 11.07% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.85% of the stock is owned by corporate insiders.

Bread Financial Company Profile

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.