Bread Financial Inc. (NYSE:BFH) recently announced its quarterly earnings data on January 26th, 2021. The financial services firm thrilled investors by revealing that they recorded earnings per share of $2.68 for the quarter, exceeding the consensus estimate of ($3.67) by an incredible $0.99.
Furthermore, Bread Financial had a return on equity (ROE) of 9.69% and a net margin of 5.13%. These positive financial metrics show that the company’s management is dedicated to creating shareholder value and achieving long-term growth.
The company’s quarterly revenue was equally impressive with the firm recording total revenues of $1.03 billion during the period compared to a consensus estimate of $1.01 billion; an increase in revenue of 20.8% from last year.
A number of hedge funds have recently made modifications to their holdings in BFH shares. Eukles Asset Management acquired a new position in Bread Financial during Q3 worth $26,000 while Ellevest Inc increased its position in shares by a whopping 61% in Q4, bringing its total holdings to 702 shares worth $26,000 after buying an additional 266 shares over the period.
Ronald Blue Trust Inc., another institutional investor, grew its stake in Bread Financial by more than half (63%) in Q4 and now holds approximately 848 shares valued at $27,000 after acquiring an additional 328 shares last quarter.
Nomura Asset Management Co Ltd also purchased a new position in Bread Financial valued at approximately $29,000 during Q3 while Rockefeller Capital Management LP boosted their stake by almost double as it grew by a staggering 169.9% bringing their holdings to approximately 842 shares worth $31,000 after purchasing an additional 530 shares last quarter.
Presently, institutional investors and hedge funds own about 96.62% of BFH’s stock.
Shares of BFH began trading at $27.71 on Monday, with a market capitalization of $1.39 billion and an impressive PE ratio of 6.21.
Furthermore, BFH boasts a price-to-earnings-growth (PEG) ratio of 0.16 and a beta of 1.92 indicating that the stock is less volatile than the broader market.
Bread Financial has had a successful year so far having traded as low as $26.21 and at its peak, fetching $60.79 in the last 52 weeks, marking an impressive financial growth trajectory for the company’s shareholders.
The stock also has a quick ratio of 1.14 and a current ratio of 1.14 pointing to the firm’s liquidity levels being healthy and adequate to cater to any unforeseen events.
In conclusion, Bread Financial (BFH) has delivered strong returns in realized earnings growth over Q4/20 beating both revenue and earnings projections against established consensus estimates that investors should definitely keep an eye on this potential cash cow for their portfolios moving forward.
Mixed Analyst Opinions for Bread Financial Holdings Inc. (BFH)
Bread Financial Holdings Inc. (NYSE:BFH) has recently announced its earnings expectations for the first quarter of 2023. According to a research report released by Seaport Res Ptn, the company is anticipated to earn $7.23 per share for the quarter, which marks a decrease from their previous estimate of $7.58. It is noteworthy that researchers have also issued reports concerning Bread Financial’s future prospects.
Seaport Res Ptn was not the only group making predictions on Bread Financial’s upcoming earnings estimates. Keefe, Bruyette & Woods downgraded Bread Financial from an “outperform” rating to a “market perform” rating while decreasing their price target to $30.00 from $35.00 in their research note published on April 11th. Additionally, Goldman Sachs Group reduced its price objective on Bread Financial from $42.00 to $36.00 and assigned a “neutral” rating on the stock in a research note released on April 5th.
Furthermore, Stephens reaffirmed an “overweight” rating and issued a $64.00 price target on shares of Bread Financial in their report published on March 10th. Conversely, Morgan Stanley cut their price target for Bread Financial to $32.00 from $39.00 and labeled the stock as an “equal weight” in another research report released on April 5th.
At present, four research analysts have rated the stock as “hold,” while three have assigned it with a “buy.” Based on data sourced from Bloomberg.com, the average rating of BFH’s stock is presently deemed as “hold.” The average target price determined through these reports stands at around $44.88.
In addition to sharing earnings expectations for Q1 2023, Bread Financial also declared quarterly dividends for its shareholders recently on Friday, March 17th; it paid at a rate of $0.21 per share to investors who held shares on record by Friday, February 10th. This represents a $0.84 annualized dividend and a dividend yield of approximately 3.03%. It is noteworthy that the ex-dividend rate was set at Thursday, February 9th, and Bread Financial’s current dividend payout ratio (DPR) is calculated as being 18.83%.
All in all, experts are having mixed opinions about Bread Financial’s future potential; nevertheless, the company continues to pay dividends every quarter despite experiencing some reduction in its estimated earnings estimate for Q1 2023. Investors may want to stay tuned for probable further fluctuations in the company’s stock value as additional information comes to light.