Bread Financial (NYSE:BFH) Shares Gap Down Following Weak Earnings

Bread Financial Holdings, Inc. (NYSE:BFH) shares gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $35.53, but opened at $33.58. Bread Financial shares last traded at $35.05, with a volume of 203,833 shares changing hands.

The company reported $2.73 earnings per share for the quarter, missing the consensus estimate of $2.92 by ($0.19). The company had revenue of $991.00 million during the quarter, compared to the consensus estimate of $998.96 million. Bread Financial had a net margin of 13.87% and a return on equity of 26.24%. The firm’s quarterly revenue was down 23.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $9.08 EPS.

Bread Financial Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 14th. Investors of record on Friday, May 10th will be paid a $0.21 dividend. The ex-dividend date is Thursday, May 9th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.27%. Bread Financial’s payout ratio is 5.87%.

Analyst Ratings Changes

BFH has been the subject of a number of recent research reports. Barclays dropped their price objective on shares of Bread Financial from $27.00 to $26.00 and set an “underweight” rating for the company in a research note on Tuesday, April 9th. Evercore ISI downgraded Bread Financial from an “in-line” rating to an “underperform” rating and lifted their price objective for the company from $29.00 to $33.00 in a report on Wednesday, January 3rd. JPMorgan Chase & Co. raised their target price on Bread Financial from $36.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday, January 26th. BMO Capital Markets boosted their price target on Bread Financial from $31.00 to $33.00 and gave the company a “market perform” rating in a research note on Friday. Finally, Royal Bank of Canada reiterated a “sector perform” rating and set a $36.00 price objective on shares of Bread Financial in a research note on Friday, January 26th. Four investment analysts have rated the stock with a sell rating, six have given a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Bread Financial has a consensus rating of “Hold” and a consensus target price of $36.64.

Insider Buying and Selling at Bread Financial

In other news, major shareholder Turtle Creek Asset Management sold 45,000 shares of the company’s stock in a transaction dated Monday, January 29th. The stock was sold at an average price of $35.67, for a total value of $1,605,150.00. Following the completion of the sale, the insider now directly owns 293,092 shares of the company’s stock, valued at approximately $10,454,591.64. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Bread Financial

Institutional investors and hedge funds have recently made changes to their positions in the company. Denali Advisors LLC lifted its holdings in Bread Financial by 46.8% during the fourth quarter. Denali Advisors LLC now owns 153,402 shares of the company’s stock worth $5,053,000 after acquiring an additional 48,900 shares in the last quarter. Quantbot Technologies LP grew its position in shares of Bread Financial by 477.6% in the 3rd quarter. Quantbot Technologies LP now owns 39,614 shares of the company’s stock valued at $1,355,000 after purchasing an additional 32,756 shares during the period. Campbell & CO Investment Adviser LLC acquired a new stake in Bread Financial during the 3rd quarter worth approximately $913,000. American Century Companies Inc. lifted its stake in Bread Financial by 16.5% in the third quarter. American Century Companies Inc. now owns 610,872 shares of the company’s stock valued at $20,892,000 after buying an additional 86,315 shares in the last quarter. Finally, First Hawaiian Bank increased its position in shares of Bread Financial by 17.2% during the fourth quarter. First Hawaiian Bank now owns 8,479 shares of the company’s stock worth $279,000 after acquiring an additional 1,245 shares in the last quarter. Institutional investors and hedge funds own 99.52% of the company’s stock.

Bread Financial Stock Performance

The stock’s 50 day moving average is $36.52 and its two-hundred day moving average is $33.06. The stock has a market capitalization of $1.83 billion, a price-to-earnings ratio of 2.58, a price-to-earnings-growth ratio of 0.13 and a beta of 1.93. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 0.48.

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.