Zacks Research Cuts Earnings Estimates for Bread Financial

Bread Financial Holdings, Inc. (NYSE:BFH) – Investment analysts at Zacks Research reduced their Q4 2026 earnings per share estimates for shares of Bread Financial in a note issued to investors on Friday, June 12th. Zacks Research analyst Team now anticipates that the company will post earnings of $0.86 per share for the quarter, down from their prior estimate of $0.88. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for Bread Financial’s current full-year earnings is $10.65 per share. Zacks Research also issued estimates for Bread Financial’s Q3 2027 earnings at $3.97 EPS.

BFH has been the subject of a number of other research reports. Weiss Ratings raised Bread Financial from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, April 27th. Wall Street Zen raised Bread Financial from a “hold” rating to a “buy” rating in a research report on Saturday. Barclays lifted their price target on Bread Financial from $67.00 to $70.00 and gave the stock an “underweight” rating in a research report on Friday, April 24th. Bank of America reaffirmed a “buy” rating and set a $108.00 price target on shares of Bread Financial in a research report on Wednesday. Finally, BTIG Research boosted their price objective on Bread Financial from $98.00 to $105.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $96.42.

Bread Financial Stock Performance

Shares of BFH opened at $101.62 on Monday. The stock has a 50-day moving average of $86.76 and a two-hundred day moving average of $78.22. Bread Financial has a one year low of $50.63 and a one year high of $103.12. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.15 and a current ratio of 1.15. The stock has a market cap of $4.11 billion, a P/E ratio of 8.32, a P/E/G ratio of 0.88 and a beta of 1.12.

Bread Financial (NYSE:BFH) last issued its quarterly earnings results on Thursday, April 23rd. The company reported $4.18 EPS for the quarter, topping analysts’ consensus estimates of $3.00 by $1.18. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The company had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $992.05 million. During the same quarter in the previous year, the firm posted $2.86 EPS. The firm’s revenue was up 4.9% compared to the same quarter last year.

Bread Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Friday, May 29th will be issued a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, May 29th. Bread Financial’s payout ratio is 7.53%.

Bread Financial declared that its board has authorized a share repurchase program on Thursday, February 26th that allows the company to repurchase $600.00 million in shares. This repurchase authorization allows the company to reacquire up to 19% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

Insider Activity

In related news, Director John J. Fawcett acquired 698 shares of the firm’s stock in a transaction dated Thursday, May 21st. The stock was acquired at an average price of $86.43 per share, with a total value of $60,328.14. Following the acquisition, the director directly owned 11,000 shares in the company, valued at $950,730. This represents a 6.78% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Roger H. Ballou sold 9,687 shares of the business’s stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $90.32, for a total value of $874,929.84. Following the completion of the transaction, the director directly owned 30,079 shares of the company’s stock, valued at approximately $2,716,735.28. This trade represents a 24.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On Bread Financial

Large investors have recently bought and sold shares of the business. Kemnay Advisory Services Inc. acquired a new position in Bread Financial in the 4th quarter worth about $28,000. Cullen Frost Bankers Inc. acquired a new position in Bread Financial in the 4th quarter worth about $29,000. Northwestern Mutual Wealth Management Co. raised its holdings in Bread Financial by 141.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock worth $31,000 after purchasing an additional 329 shares during the period. EverSource Wealth Advisors LLC raised its holdings in Bread Financial by 127.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock worth $41,000 after purchasing an additional 398 shares during the period. Finally, First Horizon Corp acquired a new position in Bread Financial in the 4th quarter worth about $56,000. Institutional investors and hedge funds own 99.52% of the company’s stock.

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.