Share Buyback Plan Declared by Bread Financial (NYSE:BFH)

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

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Wall Street Zen lowered Bread Financial from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 9th. Evercore ISI cut their price objective on Bread Financial from $68.00 to $64.00 and set an “in-line” rating for the company in a research report on Tuesday, September 30th. BTIG Research set a $105.00 price objective on Bread Financial and gave the company a “buy” rating in a research report on Monday, July 14th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Bread Financial in a research report on Wednesday, October 8th. Finally, Barclays cut their price objective on Bread Financial from $52.00 to $50.00 and set an “underweight” rating for the company in a research report on Monday, October 6th. Three analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Bread Financial currently has an average rating of “Hold” and an average target price of $66.20.

Bread Financial Price Performance

Shares of NYSE:BFH opened at $65.29 on Friday. The company’s fifty day moving average is $61.05 and its two-hundred day moving average is $56.49. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 0.36. Bread Financial has a 12-month low of $38.21 and a 12-month high of $68.01. The company has a market cap of $3.04 billion, a P/E ratio of 11.05, a price-to-earnings-growth ratio of 0.55 and a beta of 1.41.

Bread Financial (NYSE:BFH) last posted its quarterly earnings results on Thursday, October 23rd. The company reported $4.02 earnings per share for the quarter, topping analysts’ consensus estimates of $2.11 by $1.91. Bread Financial had a net margin of 6.05% and a return on equity of 13.10%. During the same period in the prior year, the firm earned $1.83 EPS. Bread Financial’s revenue for the quarter was down 1.2% on a year-over-year basis. Bread Financial has set its FY 2025 guidance at EPS. Equities analysts expect that Bread Financial will post 6.45 earnings per share for the current fiscal year.

Insider Buying and Selling at Bread Financial

In related news, Director John J. Fawcett purchased 1,027 shares of the company’s stock in a transaction dated Wednesday, July 30th. The shares were acquired at an average cost of $61.79 per share, with a total value of $63,458.33. Following the completion of the purchase, the director owned 10,302 shares of the company’s stock, valued at $636,560.58. The trade was a 11.07% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.85% of the company’s stock.

About Bread Financial

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.