Bread Financial (NYSE:BFH) Stock Price Up 7.5% on Insider Buying Activity

Posted by Defense World Staff on May 18th, 2023

Bread Financial Holdings, Inc. (NYSE:BFH – Get Rating)’s stock price rose 7.5% during trading on Wednesday following insider buying activity. The company traded as high as $29.83 and last traded at $29.81. Approximately 200,563 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 887,998 shares. The stock had previously closed at $27.73.

Specifically, major shareholder Turtle Creek Asset Management bought 33,711 shares of Bread Financial stock in a transaction dated Thursday, May 4th. The stock was acquired at an average cost of $23.72 per share, with a total value of $799,624.92. Following the purchase, the insider now directly owns 4,303,192 shares in the company, valued at approximately $102,071,714.24. The acquisition was disclosed in a filing with the SEC, which is available at this link. Insiders acquired a total of 443,711 shares of company stock valued at $11,595,708 in the last three months. 0.34% of the stock is currently owned by company insiders.

Analyst Ratings Changes

BFH has been the subject of several research analyst reports. The Goldman Sachs Group reduced their target price on Bread Financial from $42.00 to $36.00 and set a “neutral” rating for the company in a research note on Wednesday, April 5th. Stephens reissued an “overweight” rating and issued a $64.00 price objective on shares of Bread Financial in a research note on Friday, March 10th. Keefe, Bruyette & Woods downgraded Bread Financial from an “outperform” rating to a “market perform” rating and cut their target price for the stock from $35.00 to $30.00 in a research note on Tuesday, April 11th. Finally, Morgan Stanley cut their target price on Bread Financial from $39.00 to $32.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 5th. Four analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $44.88.

Bread Financial Trading Up 7.6 %

The firm has a market capitalization of $1.50 billion, a PE ratio of 3.19, a PEG ratio of 0.13 and a beta of 1.92. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 0.69. The business has a fifty day moving average price of $28.35 and a two-hundred day moving average price of $35.33.

Bread Financial (NYSE:BFH – Get Rating) last released its quarterly earnings results on Thursday, April 27th. The company reported $9.08 earnings per share for the quarter, topping analysts’ consensus estimates of $7.11 by $1.97. The business had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.06 billion. Bread Financial had a return on equity of 19.35% and a net margin of 9.66%. The company’s revenue was up 40.0% compared to the same quarter last year. During the same period in the prior year, the business posted $4.21 EPS. Analysts expect that Bread Financial Holdings, Inc. will post 11.38 EPS for the current fiscal year.

Bread Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 16th. Stockholders of record on Friday, May 12th will be issued a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.82%. The ex-dividend date of this dividend is Thursday, May 11th. Bread Financial’s dividend payout ratio is presently 8.99%.

Hedge Funds Weigh In On Bread Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Check Capital Management Inc. CA boosted its holdings in Bread Financial by 1.9% during the 1st quarter. Check Capital Management Inc. CA now owns 390,648 shares of the company’s stock valued at $11,844,000 after acquiring an additional 7,329 shares during the period. Hudson Bay Capital Management LP purchased a new position in Bread Financial during the 1st quarter valued at about $3,032,000. Hancock Whitney Corp boosted its holdings in Bread Financial by 8.3% during the 1st quarter. Hancock Whitney Corp now owns 31,011 shares of the company’s stock valued at $940,000 after acquiring an additional 2,383 shares during the period. State Street Corp boosted its holdings in Bread Financial by 0.7% during the 1st quarter. State Street Corp now owns 1,958,208 shares of the company’s stock valued at $59,373,000 after acquiring an additional 13,819 shares during the period. Finally, Squarepoint Ops LLC boosted its holdings in Bread Financial by 283.5% during the 1st quarter. Squarepoint Ops LLC now owns 67,539 shares of the company’s stock valued at $2,048,000 after acquiring an additional 49,926 shares during the period. 96.62% of the stock is currently owned by hedge funds and other institutional investors.

Bread Financial Company Profile

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Bread Financial Holdings, Inc engages in the provision of payment, lending, and saving solutions. The firm also offers private label and co-brand credit cards and buy now, pay later products such as installment loans and split-pay offerings. The company was founded in 1996 and is headquartered in Columbus, OH.