Bread Financial Holdings, Inc. (NYSE:BFH), a prominent player in the financial services industry, has recently caught the attention of ETF Managers Group LLC. According to the company’s filing with the Securities & Exchange Commission, ETF Managers Group LLC has reduced its holdings in Bread Financial by 10.7% during the first quarter of 2023.
The latest filing reveals that ETF Managers Group LLC now owns approximately 153,134 shares of Bread Financial, down from its previous holdings of 171,551 shares. This decrease represents a reduction in ownership by 18,417 shares. Despite this decline, ETF Managers Group LLC still holds around 0.31% stake in Bread Financial.
The value of these shares is estimated at $4,643,000 at the end of the first quarter. This demonstrates that despite these fluctuations in ownership percentages, Bread Financial maintains a solid market presence and substantial shareholder interest.
Bread Financial made headlines earlier this year when it released impressive earnings results for the first quarter. The company reported an outstanding earnings per share (EPS) of $9.08 for Q1, surpassing market expectations by an impressive $1.97 per share. The consensus estimate had predicted an EPS of $7.11.
Moreover, Bread Financial showcased remarkable financial performance with a return on equity (ROE) of 19.35% and a net margin of 9.66%. These figures indicate that the company remains profitable while maintaining healthy financial ratios.
In terms of revenue generation, Bread Financial recorded $1.29 billion during Q1 2023 compared to market expectations of $1.06 billion – representing a remarkable increase of 40% from the same period last year.
Financial analysts are highly optimistic about Bread Financial’s future prospects based on their analysis so far – predicting that the company will post an estimated EPS of 11.78 for this fiscal year as a whole.
Despite these positive indicators, some research firms have expressed a more cautious stance. Keefe, Bruyette & Woods, for example, downgraded their rating on Bread Financial from “outperform” to “market perform.” They also reduced their price objective from $35.00 to $30.00 per share.
The Goldman Sachs Group and Morgan Stanley have likewise lowered their price objectives for Bread Financial. The former reduced it from $42.00 to $36.00 per share and labeled the stock as “neutral,” while the latter decreased it from $39.00 to $32.00 per share and maintained an “equal weight” rating.
On the other hand, Stephens reaffirmed its positive outlook on Bread Financial with an “overweight” rating and set a price objective of $64.00 per share – suggesting potential growth opportunities in the future.
Currently, according to data sourced from Bloomberg.com, Bread Financial boasts an average rating of “Hold” alongside a consensus target price of $44.88 per share.
As we venture further into 2023, investors closely monitor any developments concerning Bread Financial Holdings, Inc., intrigued by both contrasting opinions surrounding its future trajectory and its impressive financial performance in recent quarters.
[bs_slider_forecast ticker=”BFH”]
Title: Bread Financial: Investment Activity and Dividend Analysis in 2022
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”BFH” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Title: Bread Financial: Investment Activity and Dividend Analysis
Introduction:
In the dynamic world of finance, investors continuously evaluate their positions to capitalize on opportunities amidst changing market conditions. Recent reports show that several notable investment firms have made adjustments to their holdings in Bread Financial during the third and fourth quarters of 2022. This article delves into the details of these transactions, evaluates the performance of Bread Financial, and provides insights into its recent dividend announcement.
Investment Changes by Vanguard Group Inc., BlackRock Inc., State Street Corp, Dimensional Fund Advisors LP, and Macquarie Group Ltd.:
Vanguard Group Inc., a prominent investment firm, made an impressive entrance into Bread Financial during the third quarter, investing a substantial $155,419,000 in shares of the company. BlackRock Inc. also seized an opportunity during the same quarter by purchasing shares worth $153,464,000. Additionally, State Street Corp observed potential in Bread Financial and initiated their position with an investment totaling $52,807,000.
During the fourth quarter of 2022, Dimensional Fund Advisors LP displayed confidence in Bread Financial’s growth prospects by increasing its stake in the company by 30.5%. This move demonstrated Dimensional Fund Advisor’s belief in the long-term value proposition of Bread Financial’s stock.
Macquarie Group Ltd.’s exponential increase in stake deserves special attention as it raised its position by an astonishing 147,438.3%. Macquarie now owns a significant number of shares amounting to $47,117,000.
Together with other hedge funds and institutional investors who account for approximately 99.89% ownership of Bread Financial’s stock share composition highlights strong investor confidence in both short-term performance and long-term growth prospects.
Bread Financial’s Market Performance:
Shares of NYSE BFH opened at $30.29 on June 28th marking a steady start for this publicly listed financial holding company. The stock experienced a 12-month low of $23.19 and peaked at $45.75 during the same period, reflecting its potential for growth. With a market capitalization of $1.52 billion, Bread Financial holds a significant position in the financial sector.
The Price-to-Earnings (P/E) ratio stands at 3.24, emphasizing the potential value investors perceive in Bread Financial’s stock relative to its earnings per share (EPS). A P/E/G ratio of 0.08 suggests that investors anticipate further positive growth for the company.
Notably, Bread Financial’s beta of 1.91 showcases higher volatility compared to the broader market but also signifies higher potential returns.
Research Firm Opinions and Dividend Analysis:
Several research firms recently commented on Bread Financial’s stock outlook. Keefe, Bruyette & Woods rated it as “market perform” after downgrading from an “outperform” rating and adjusted their price objective from $35.00 to $30.00 in April 2023.
The Goldman Sachs Group and Morgan Stanley both lowered their respective price objectives citing short-term challenges but still maintained a “neutral” rating for the stock.
On the other hand, Stephens remains optimistic with an “overweight” rating on Bread Financial and set an encouraging price objective of $64.00.
Bread Financial recently announced a quarterly dividend payment on June 16th to shareholders recorded on May 12th, amounting to $0.21 per share purchased during that time frame. This translates into an annualized dividend payout ratio of 8.99% yielding at 2.77%.
Conclusion:
Bread Financial has experienced noteworthy investment activity by prominent players such as Vanguard Group Inc., BlackRock Inc., State Street Corp, Dimensional Fund Advisors LP, and Macquarie Group Ltd., demonstrating strong investor confidence in its future potential.
Furthermore, despite varying research firm opinions regarding the stock’s outlook, Bread Financial has demonstrated stability and potential for long-term growth. The recently announced dividend payout also underscores the company’s shareholder-centric approach.
As always, investors should conduct thorough research and perform due diligence to make informed investment decisions based on their individual financial goals and risk tolerance.
