COLUMBUS – Bread Financial Holdings, Inc. (NYSE: BFH) has expanded its board with the appointment of Praniti Lakhwara as an independent director, effective Monday. Lakhwara, who is currently the Chief Information Officer (CIO) at Zscaler (NASDAQ:ZS), a global cloud security solutions provider, will also join the board's Risk & Technology committee.
With over two decades of experience in scaling global IT operations, Lakhwara has held various technology leadership roles at companies like Conga, Nimble Storage, and Guideware Software. Her early career included a significant tenure at Align (NASDAQ:ALGN) Technology, where she progressed from an analyst and engineer to senior director of information technology applications.
Ralph Andretta, president and CEO of Bread Financial, expressed confidence that Lakhwara's extensive management expertise and technology acumen will be a valuable addition to the board, enhancing the company's focus on emerging technology, artificial intelligence, and automation.
Lakhwara holds a bachelor's degree in aeronautical engineering from Arizona State University. Her appointment brings the total number of directors on Bread Financial's board to ten.
Bread Financial, headquartered in Columbus, Ohio, is a financial services company that emphasizes technology-driven solutions. The company offers a range of payment, lending, and saving products, aiming to provide flexible and customer-centric experiences.
Bread Financial's offerings include private label and co-brand credit cards, as well as the Bread Pay buy now, pay later products. Additionally, they provide direct-to-consumer products such as the Bread Cashback American Express (NYSE:AXP) Credit Card and Bread Savings products.
The company prides itself on a digital-first strategy, leveraging data insights and white-label technology to foster growth for its partners. The addition of Lakhwara to the board is expected to further enhance Bread Financial's capabilities in these areas.
This news is based on a recent press release statement issued by Bread Financial Holdings, Inc.
In other recent news, Bread Financial Holdings has been the subject of various analyst ratings and price targets, reflecting differing views on its financial health and future prospects. Amid the changing market conditions, Bread Financial's credit data has shown mixed signals, with delinquency rates and net charge-offs outperforming some analysts' expectations, while loan balances have seen a decrease. Barclays Capital Inc. issued an "Underweight" rating, Wolfe Research upgraded Bread Financial to "Outperform", and Keefe, Bruyette & Woods elevated its stock rating from Market Perform to Outperform. Conversely, Argus downgraded the company's shares from Buy to Hold due to a challenging revenue environment.
Bread Financial also announced the appointment of John J. Fawcett to its board of directors. Fawcett, a veteran in the financial services sector, brings a wealth of experience to the board, having held various senior roles across the industry. His appointment is expected to contribute to the board's expertise, particularly in accounting, international operations, and business operations.
The company has been navigating the Consumer Financial Protection Bureau's late fee rule changes, which could impact profitability. While some analysts forecast a significant negative impact on earnings, others expect the company to employ mitigation strategies effectively. BMO Capital Markets adjusted its outlook for Bread Financial shares, increasing the firm's price target from $31.00 to $33.00, citing higher than previously anticipated net revenues.
InvestingPro Insights
Bread Financial Holdings, Inc. (NYSE: BFH) has been making headlines with the strategic expansion of its board, and financial market participants are closely watching the company's performance metrics. According to InvestingPro data, the company holds a market capitalization of $1.99 billion and is trading at a low earnings multiple with a P/E ratio of 5.04, which is a slight adjustment from the last twelve months as of Q1 2024, showing a P/E ratio of 4.78. This low earnings valuation could potentially signal an attractive entry point for investors looking for undervalued stocks.
Despite recent challenges in revenue growth, with a decrease of 5.14% over the last twelve months as of Q1 2024, Bread Financial has maintained consistent dividend payments for 9 consecutive years, showcasing a commitment to returning value to shareholders. The company's dividend yield stands at 2.09%, with the ex-date of the last dividend being May 9, 2024. This steady payout could be particularly appealing to income-focused investors.
InvestingPro Tips highlight that Bread Financial has experienced a large price uptick over the last six months, with a 30.02% total return, indicating strong market confidence which may continue to attract investor attention. Additionally, analysts predict the company will be profitable this year, despite expectations of a net income drop. For investors seeking further insights, there are additional tips available on InvestingPro, including analysis on shareholder yield and gross profit margins.
Interested readers can access a more comprehensive set of InvestingPro Tips to better understand the investment potential of Bread Financial. As a special offer, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With 10 additional tips listed, investors can gain a deeper understanding of Bread Financial's financial health and market position.
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