US Bancorp DE has decreased its stake in Bread Financial Holdings, Inc. (NYSE:BFH) by 8.3% during the second quarter, according to a recent filing with the Securities and Exchange Commission (SEC). The firm now holds 14,778 shares of Bread Financial after selling 1,344 shares during this period. As of the latest reporting, US Bancorp DE’s holdings in the company are valued at approximately $844,000.
Several other institutional investors have also adjusted their positions in Bread Financial. For instance, American Century Companies Inc. increased its stake by 5.8% in the first quarter, now owning 1,461,844 shares worth $73.2 million following the purchase of an additional 79,709 shares. Wellington Management Group LLP made a significant move, boosting their stake by 45.0%, resulting in ownership of 1,320,418 shares, valued at $66.1 million.
Goldman Sachs Group Inc. also raised its stake by an impressive 104.8%, now holding 736,604 shares valued at $36.9 million after acquiring an additional 376,920 shares. Pzena Investment Management LLC and Northern Trust Corp made smaller increases of 0.8% and 0.9%, respectively, with their holdings now at 728,204 shares and 606,546 shares. Collectively, institutional investors own 99.52% of Bread Financial’s stock.
Analysts Update Price Targets for Bread Financial
Recent research reports have prompted analysts to adjust their price targets for Bread Financial. The Royal Bank of Canada raised its target from $65.00 to $74.00 while maintaining a “sector perform” rating. Conversely, Keefe, Bruyette & Woods lowered their target from $88.00 to $71.00, rating the stock as “outperform.”
Morgan Stanley also adjusted its target price upward from $51.00 to $53.00, assigning an “underweight” rating. Weiss Ratings reaffirmed a “hold (c+)” rating, while Evercore ISI reduced its target from $68.00 to $64.00 with an “in-line” rating. Currently, three analysts have given the stock a Buy rating, six have issued a Hold rating, and three have rated it Sell, leading to an average rating of “Hold” with a consensus price target of $66.20.
Performance and Financial Highlights
On July 24, 2023, Bread Financial reported quarterly earnings of $3.14 per share, exceeding the consensus estimate of $1.85 by $1.29. The company generated revenue of $929 million, falling short of analysts’ expectations of $944.69 million. Despite this, Bread Financial achieved a return on equity of 13.10% and a net margin of 6.05%. Notably, the firm’s revenue saw a decline of 1.1% year-over-year.
The stock opened at $59.09 on Friday, with a market capitalization of $2.76 billion and a price-to-earnings ratio of 10.00. Throughout the past year, Bread Financial’s stock has fluctuated between a low of $38.21 and a high of $68.01. The company recently declared a quarterly dividend of $0.21 per share, representing an annualized dividend of $0.84 and a yield of 1.4%.
In addition to the dividend announcement, Bread Financial’s Board of Directors has initiated a share repurchase plan that allows for the buyback of shares, signaling confidence in the stock’s valuation.
In related news, Director John J. Fawcett purchased 1,027 shares at an average cost of $61.79 per share on July 30, further increasing his position in the company to 10,302 shares, valued at approximately $636,560.
Bread Financial Holdings, Inc. offers technology-driven payment and lending solutions tailored for consumer-based industries in North America, including credit card and loan financing services. The company’s robust performance and strategic maneuvers in the market continue to capture the attention of investors and analysts alike.
