In a notable market movement, BFH has reached its 52-week high, hitting a price level of $52.75. This significant milestone reflects the strong performance of the stock over the past year. The 52-week high data is a key indicator for investors, as it provides a snapshot of the stock's potential and its performance relative to previous highs. In addition to this, Alliance Data Systems (NYSE:BFH), the parent company of BFH, has seen a substantial 1-year change of 38.25%. This impressive growth rate further underscores the robust performance of BFH and its potential for future gains.
In other recent news, Bread Financial has announced a quarterly dividend of $0.21 per share, indicating the company's ongoing strategy to deliver value to its shareholders. The company has also been the subject of various analyst adjustments, with Compass Point initiating coverage with a Buy rating and a price target of $54.00. Jefferies, RBC Capital, and Evercore ISI increased their price targets, while Goldman Sachs maintained its Sell rating.
The company's core earnings per share (EPS) for fiscal years 2024 and 2025 are projected to be $5.50 and $6.30 respectively, marking a year-over-year core EPS decline of 46% for FY24, followed by a 15% increase for FY25. In May 2024, Bread Financial reported a net loss rate of 8.8%, up from 8.4% in the previous year.
In terms of corporate developments, Bread Financial has secured a multi-year agreement with Saks Fifth Avenue to offer co-branded and private-label credit cards, with the transition expected to be completed in the third quarter of 2024. The company also welcomed two new independent directors, Praniti Lakhwara and John J. Fawcett. These are the recent developments in Bread Financial.
InvestingPro Insights
As BFH reaches a new 52-week high, the market is clearly responding to the company's recent performance. InvestingPro data shows that BFH has a market capitalization of $2.49 billion and is trading at a price-to-earnings (P/E) ratio of 6.34, which is considered low, indicating that the stock may be undervalued relative to its earnings. Additionally, the company has demonstrated a strong return over the last three months, with a 38.0% price total return, aligning with the positive trend reflected in its 1-year price total return of 39.8%.
InvestingPro Tips reveal that analysts are optimistic about BFH's future, with seven analysts revising their earnings upwards for the upcoming period, and the consensus is that the company will be profitable this year. Moreover, BFH has maintained dividend payments for nine consecutive years, offering a current dividend yield of 1.67%, which could be attractive to income-seeking investors. For those considering a deeper analysis, there are additional tips available on InvestingPro, and users can apply the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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