Bread Financial (NYSE:BFH) Trading Up 5.8% Following Strong Earnings

Bread Financial Holdings, Inc. (NYSE:BFH)’s share price was up 5.8% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $73.64 and last traded at $72.14. Approximately 351,573 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 966,404 shares. The stock had previously closed at $68.20.

The company reported $2.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $1.81. Bread Financial had a net margin of 11.02% and a return on equity of 17.92%. The business had revenue of $975.00 million for the quarter, compared to analysts’ expectations of $954.74 million. During the same quarter last year, the company earned $0.41 EPS.

Bread Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Friday, February 27th will be paid a $0.23 dividend. The ex-dividend date of this dividend is Friday, February 27th. This represents a $0.92 annualized dividend and a dividend yield of 1.3%. Bread Financial’s dividend payout ratio is presently 9.37%.

Bread Financial declared that its board has initiated a stock buyback program on Thursday, October 23rd that allows the company to repurchase $200.00 million in shares. This repurchase authorization allows the company to buy up to 7.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Key Stories Impacting Bread Financial

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: Q4 results materially beat expectations — strong EPS and revenue, with management highlighting improved credit metrics and solid margins, which supports near-term profitability. MarketBeat Earnings Summary
• Positive Sentiment: BTIG reaffirmed a “buy” rating and maintained a $98 price target (significant upside vs. the current share level), offering a bullish analyst counterpoint that may support the stock. TickerReport: BTIG Coverage
• Positive Sentiment: Company commentary and investor materials indicate low single-digit loan growth guidance for 2026 and improving credit metrics (delinquencies down year-over-year), which reduces downside risk from credit cycles. Seeking Alpha: Credit Metrics Update
• Neutral Sentiment: Bread declared a quarterly common dividend of $0.23 per share (payable March 16, ex-dividend Feb 27), providing modest income but not a large yield. GlobeNewswire: Dividend Notice
• Neutral Sentiment: Company performance update published December metrics (net loss rate 7.4%, delinquency ~5.8%) — shows improvement vs. prior year but still-elevated loss levels that investors will monitor. GlobeNewswire: Performance Update
• Neutral Sentiment: Earnings call materials and transcript are available for deeper read — useful for investors assessing forward commentary on losses, loan growth and buyback/dividend plans. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Morgan Stanley raised its price target to $68 but kept an “underweight” stance — the PT implies downside from current levels and signals caution from a major institutional shop, which can weigh on sentiment. Benzinga: Analyst Note

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Zacks Research lowered Bread Financial from a “strong-buy” rating to a “hold” rating in a report on Monday, December 22nd. JPMorgan Chase & Co. restated an “underweight” rating and issued a $72.00 price target on shares of Bread Financial in a research report on Thursday, December 4th. Weiss Ratings reissued a “buy (b-)” rating on shares of Bread Financial in a research note on Monday, December 29th. UBS Group initiated coverage on shares of Bread Financial in a research note on Thursday, January 8th. They issued a “buy” rating and a $92.00 price objective on the stock. Finally, The Goldman Sachs Group raised Bread Financial from a “sell” rating to a “hold” rating and set a $84.00 price target for the company in a research note on Tuesday, January 6th. Four equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $79.27.

Hedge Funds Weigh In On Bread Financial

A number of institutional investors and hedge funds have recently bought and sold shares of BFH. Curat Global LLC boosted its holdings in Bread Financial by 81,068.5% in the 2nd quarter. Curat Global LLC now owns 450,485 shares of the company’s stock valued at $25,732,000 after purchasing an additional 449,930 shares during the period. Bank of America Corp DE raised its position in shares of Bread Financial by 241.1% during the second quarter. Bank of America Corp DE now owns 537,656 shares of the company’s stock valued at $30,711,000 after buying an additional 380,039 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of Bread Financial by 104.8% in the first quarter. Goldman Sachs Group Inc. now owns 736,604 shares of the company’s stock valued at $36,889,000 after buying an additional 376,920 shares during the period. UBS Group AG grew its position in Bread Financial by 100.4% during the fourth quarter. UBS Group AG now owns 716,725 shares of the company’s stock worth $53,059,000 after buying an additional 359,088 shares in the last quarter. Finally, Allianz Asset Management GmbH increased its stake in Bread Financial by 44.5% during the third quarter. Allianz Asset Management GmbH now owns 943,659 shares of the company’s stock valued at $52,628,000 after acquiring an additional 290,803 shares during the period. Institutional investors own 99.52% of the company’s stock.

Bread Financial Stock Performance

The firm has a fifty day simple moving average of $73.11 and a 200 day simple moving average of $65.50. The company has a current ratio of 1.17, a quick ratio of 1.19 and a debt-to-equity ratio of 0.27. The stock has a market cap of $3.31 billion, a price-to-earnings ratio of 6.70, a PEG ratio of 0.49 and a beta of 1.27.

Bread Financial Company Profile

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.