Bread financial director buys $99,643 in company stock

In a recent transaction, John J. Fawcett, a director at Bread Financial Holdings, Inc. (NYSE:BFH), acquired additional company shares valued at approximately $99,643. The purchase, which occurred on August 12, involved 2,000 shares at a weighted average price of $49.82.

Fawcett's transaction took place through multiple purchases, with individual share prices ranging from $49.79 to $49.86. Following this acquisition, Fawcett's direct holdings in Bread Financial increased to a total of 5,473 shares. This total includes both unrestricted shares and unvested restricted stock units, which were granted to him earlier in the year on June 17.

Investors often monitor insider buying as it can signal executives' confidence in the company's future performance. Transactions such as these are publicly disclosed to ensure transparency and provide shareholders and potential investors with critical information about insider activity within the company.

Bread Financial, formerly known as Alliance Data Systems Corp (NYSE:BFH), is recognized under the Standard Industrial Classification as a personal credit institution. The company's corporate headquarters are located in Columbus, Ohio.

The details of the transaction were made available through a Form 4 filing with the Securities and Exchange Commission. Interested parties have the opportunity to request additional information regarding the specific prices at which the shares were acquired within the reported range.

In other recent news, Bread Financial has been a subject of attention following its second-quarter earnings report of 2024. The company reported a net income of $133 million, exceeding expectations with an adjusted earnings per share (EPS) of $2.66. These positive developments were attributed to higher revenue, reduced operating expenses, and lower provisions for credit losses. Bread Financial also announced strategic partnerships with Saks Fifth Avenue and HP (NYSE:HPQ), planning to complete the Saks portfolio conversion in the forthcoming quarter.

Analysts from RBC Capital and BofA Securities reacted to these recent developments by adjusting their price targets for Bread Financial. RBC Capital raised its target to $58 from the previous $47, maintaining a Sector Perform rating on the stock. BofA Securities also increased its target from $46.00 to $54.00, while keeping a Neutral rating.

Despite potential uncertainties related to changes in late fee regulations, Bread Financial remains optimistic about achieving its long-term strategic goals and financial targets. The company's proactive approach to managing the macroeconomic and regulatory environment, strategic partnerships, and disciplined capital management positions it well for future performance.

InvestingPro Insights

In light of the insider buying activity at Bread Financial Holdings, Inc. (NYSE:BFH), investors might find the current financial metrics and analyst insights from InvestingPro particularly enlightening. With a market capitalization of $2.6 billion, Bread Financial is trading at an attractive earnings multiple of 5.35, according to the latest real-time data. This low P/E ratio suggests that the company's shares might be undervalued compared to its earnings potential. Moreover, the company has demonstrated significant returns, with a one-week total return of 13.61% and a robust three-month total return of 23.65%, which could reflect growing investor confidence in the company's prospects.

Despite a revenue decline of 8.38% over the last twelve months as of Q2 2024, the company has managed to maintain a strong operating income margin of 23.77%. Additionally, Bread Financial has upheld its commitment to shareholders by maintaining dividend payments for nine consecutive years, with a current dividend yield of 1.64%. These financial health indicators, alongside the recent insider buying, may provide a positive outlook for potential investors.

An InvestingPro Tip to consider is that analysts have revised their earnings upwards for the upcoming period, indicating a potential improvement in Bread Financial's financial performance. Furthermore, the company is expected to remain profitable this year, as per analyst predictions. For those seeking more comprehensive analysis, InvestingPro offers additional insights, with a total of 11 InvestingPro Tips available for Bread Financial, which can be found at InvestingPro's full list of tips.

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