Bread Financial Holdings Inc. (NYSE: BFH) stock jumped 0.87% on Tuesday to $40.67 against a previous-day closing price of $40.32. With 0.89 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.99 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $42.00 whereas the lowest price it dropped to was $39.92. The 52-week range on BFH shows that it touched its highest point at $74.80 and its lowest point at $28.85 during that stretch. It currently has a 1-year price target of $47.91. With its current market cap of 1.89 billion, BFH has annualized dividend of $0.84 while the current yield stands at 2.07%. Beta for the stock currently stands at 1.98.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BFH was up-trending over the past week, with a rise of 5.64%, but this was up by 8.51% over a month. Three-month performance surged to 35.39% while six-month performance fell -7.40%. The stock lost -37.05% in the past year, while it has gained 7.99% so far this year. A look at the trailing 12-month EPS for BFH yields 8.16 with Next year EPS estimates of 10.46. For the next quarter, that number is -2.97. This implies an EPS growth rate of 266.90% for this year and 122.73% for next year. EPS is expected to grow by 5.17% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.50%.
Float and Shares Shorts:
At present, 49.80 million BFH shares are outstanding with a float of 49.63 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.7 million, which was 5.42% higher than short shares on Sep 14, 2022. In addition to Mr. Ralph J. Andretta as the firm’s CEO, Pres & Director, Mr. Perry S. Beberman serves as its Exec. VP & CFO.
Through their ownership of 99.08% of BFH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.85% of BFH, in contrast to 50.60% held by mutual funds. Shares owned by individuals account for 49.06%. As the largest shareholder in BFH with 10.05% of the stake, The Vanguard Group, Inc. holds 5,012,017 shares worth 5,012,017. A second-largest stockholder of BFH, Franklin Mutual Advisers LLC, holds 4,783,253 shares, controlling over 9.60% of the firm’s shares. Turtle Creek Asset Management, In is the third largest shareholder in BFH, holding 4,568,162 shares or 9.16% stake. With a 4.58% stake in BFH, the Fidelity Low Priced Stock Fund is the largest stakeholder. A total of 2,281,846 shares are owned by the mutual fund manager. The iShares Core S&P Small Cap ETF, which owns about 3.47% of BFH stock, is the second-largest Mutual Fund holder. It holds 1,729,161 shares valued at 65.12 million. Vanguard Total Stock Market Index holds 3.02% of the stake in BFH, owning 1,505,564 shares worth 56.7 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BFH since 18 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BFH analysts setting a high price target of $64.00 and a low target of $36.00, the average target price over the next 12 months is $47.91. Based on these targets, BFH could surge 57.36% to reach the target high and fall by -11.48% to reach the target low. Reaching the average price target will result in a growth of 17.8% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BFH will report FY 2022 earnings on 01/25/2024. Analysts have provided yearly estimates in a range of $5.29 being high and $3.08 being low. For BFH, this leads to a yearly average estimate of $4.37. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Bread Financial Holdings Inc. surprised analysts by $0.17 when it reported $2.69 EPS against a consensus estimate of $2.52. The surprise factor in the prior quarter was -$1.96. Based on analyst estimates, the high estimate for the next quarter is -$2.10 and the low estimate is -$4.08. The average estimate for the next quarter is thus -$2.94.
Summary of Insider Activity:
Insiders traded BFH stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 11 over the past year. The total number of shares bought during that period was 187,655 while 32,903 shares were sold.