Bread Financial (BFH) Stock Price, News & Analysis

Company Overview

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. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. It offers its products under the Bread CashbackTM, Bread PayTM, and Bread SavingsTM brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.

Key Stats

• Today's Range: $56.82 to $58.40
• 50-Day Range: $46.42 to $62.77
• 52-Week Range: $26.58 to $63.01
• Volume: 491,327 shs
• Average Volume: 848,907 shs
• Market Capitalization: $2.84 billion
• P/E Ratio: 9.11
• Dividend Yield: 1.47%
• Price Target: $50.00
• Consensus Rating: Hold

Bread Financial Stock Analysis - MarketRank™

Bread Financial scored higher than 76% of companies evaluated by MarketBeat, and ranked 326th out of 930 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.1 / 5
• Analyst Rating: Hold

Consensus Rating

Bread Financial has received a consensus rating of Hold. The company's average rating score is 2.12, and is based on 5 buy ratings, 9 hold ratings, and 3 sell ratings.

Amount of Analyst Coverage

Bread Financial has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: -17.96%

Earnings Growth

Earnings for Bread Financial are expected to decrease by -17.96% in the coming year, from $7.63 to $6.26 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Bread Financial is 9.11, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 136.33.

Price to Earnings Ratio vs. Sector

The P/E ratio of Bread Financial is 9.11, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 49.60.

Price to Book Value per Share Ratio

Bread Financial has a P/B Ratio of 0.97. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

6.97% of the float of Bread Financial has been sold short.

Short Interest Ratio / Days to Cover

Bread Financial has a short interest ratio ("days to cover") of 3.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Bread Financial has recently decreased by 16.95%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Bread Financial pays a meaningful dividend of 1.44%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Bread Financial does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Bread Financial is 13.38%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Bread Financial will have a dividend payout ratio of 13.42% next year. This indicates that Bread Financial will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

6.97% of the float of Bread Financial has been sold short.

Short Interest Ratio / Days to Cover

Bread Financial has a short interest ratio ("days to cover") of 3.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Bread Financial has recently decreased by 16.95%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.2 / 5
• News Sentiment: 0.83

News Sentiment

Bread Financial has a news sentiment score of 0.83. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Finance companies.

News Coverage This Week

MarketBeat has tracked 16 news articles for Bread Financial this week, compared to 7 articles on an average week.

Search Interest

6 people have searched for BFH on MarketBeat in the last 30 days. This is an increase of 200% compared to the previous 30 days.

MarketBeat Follows

2 people have added Bread Financial to their MarketBeat watchlist in the last 30 days. This is an increase of 100% compared to the previous 30 days.

Company Ownership

• Score: 3.3 / 5
• Insider Trading: Acquiring Shares

Insider Buying vs. Insider Selling

In the past three months, Bread Financial insiders have bought more of their company's stock than they have sold. Specifically, they have bought $51,020.00 in company stock and sold $0.00 in company stock.

Percentage Held by Insiders

Only 0.62% of the stock of Bread Financial is held by insiders.

Percentage Held by Institutions

99.52% of the stock of Bread Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

BFH Stock Analysis - Frequently Asked Questions

How have BFH shares performed this year?

Bread Financial's stock was trading at $32.94 on January 1st, 2024. Since then, BFH shares have increased by 73.6% and is now trading at $57.19.
View the best growth stocks for 2024 here.

How were Bread Financial's earnings last quarter?

Bread Financial Holdings, Inc. (NYSE:BFH) announced its quarterly earnings data on Thursday, October, 24th. The company reported $1.83 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.86 by $0.03. The firm's quarterly revenue was down 4.7% on a year-over-year basis.

Who are Bread Financial's major shareholders?

Top institutional investors of Bread Financial include Wellington Management Group LLP (4.25%), State Street Corp (4.09%), Geode Capital Management LLC (2.33%) and Jacobs Levy Equity Management Inc. (2.26%). Insiders that own company stock include Turtle Creek Asset Management, Roger H Ballou, Timothy J Theriault and John J Fawcett.
View institutional ownership trends.

How do I buy shares of Bread Financial?

Shares of BFH stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Bread Financial own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Bread Financial investors own include Waste Connections (WCN), American Water Works (AWK), The RMR Group (RMR), AUO (AUOTY), DiamondRock Hospitality (DRH), iShares Micro-Cap ETF (IWC) and Triple Flag Precious Metals (TFPM).

Company Calendar

• Ex-Dividend for 9/13 Dividend: 8/09/2024
• Dividend Payable: 9/13/2024
• Last Earnings: 10/24/2024
• Ex-Dividend for 12/13 Dividend: 11/08/2024
• Today: 11/21/2024
• Dividend Payable: 12/13/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 1/23/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Personal credit institutions
• Sub-Industry: Banking
• Current Symbol: NYSE:BFH
• CUSIP: N/A
• CIK: 1101215
• Web: www.breadfinancial.com
• Phone: (614) 729-4000
• Fax: 214-494-3000
• Employees: 7,000
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $50.00
• High Stock Price Target: $67.00
• Low Stock Price Target: $25.00
• Potential Upside/Downside: -12.6%
• Consensus Rating: Hold
• Rating Score (0-4): 2.12
• Research Coverage: 17 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $6.28
• Trailing P/E Ratio: 9.11
• Forward P/E Ratio: 7.50
• P/E Growth: N/A
• Net Income: $718 million
• Net Margins: 6.37%
• Pretax Margin: 8.72%
• Return on Equity: 13.33%
• Return on Assets: 1.82%

Debt

• Debt-to-Equity Ratio: 0.33
• Current Ratio: 1.19
• Quick Ratio: 1.19

Sales & Book Value

• Annual Sales: $3.93 billion
• Price / Sales: 0.72
• Cash Flow: $19.26 per share
• Price / Cash Flow: 2.97
• Book Value: $59.15 per share
• Price / Book: 0.97

Miscellaneous

• Outstanding Shares: 49,715,000
• Free Float: 49,407,000
• Market Cap: $2.84 billion
• Optionable: Optionable
• Beta: 1.94