Bread Financial Holdings, Inc. (NYSE:BFH) Director John J. Fawcett recently purchased 1,000 shares of the company's common stock. The shares were acquired at a price of $51.02 each, resulting in a total transaction value of $51,020. Following this transaction, Fawcett now holds a total of 6,473 shares, which includes 3,000 unrestricted shares and 3,473 unvested restricted stock units granted earlier this year.
In other recent news, Bread Financial disclosed its Q3 2024 earnings, reporting an adjusted net income of $93 million and an adjusted diluted EPS of $1.83. Despite a challenging economic landscape and recent hurricanes, the financial services provider maintains a cautiously optimistic outlook. Key highlights include a 12% year-over-year increase in tangible book value per share, a strategic repurchase of convertible notes enhancing balance sheet strength, and a strong capital position with a CET1 ratio of 13.3%.
However, Bread Financial also faced a 5% decrease in revenue, primarily due to reduced fees, and total credit sales saw a slight decline. Delinquency rates rose marginally, with an expected full-year net loss rate of 8.3%. The company projects average loans and total revenue to decline in low single digits for 2024, but anticipates adjusted expenses will decrease relative to 2023.
In response to these developments, Bread Financial is focusing on achieving financial targets and responsible growth. It has also extended its $700 million senior unsecured revolving credit facility with improved terms and diversified its product suite with over 100 brand partners. The company looks forward to a gradual economic recovery and is prepared to mitigate impacts from potential regulatory changes.
InvestingPro Insights
John J. Fawcett's recent purchase of Bread Financial Holdings, Inc. (NYSE:BFH) shares aligns with some positive indicators from InvestingPro data. The company's stock has shown remarkable performance, with a 54.51% year-to-date price total return and an impressive 88.98% return over the past year. This strong performance is reflected in an InvestingPro Tip highlighting the "high return over the last year."
Despite the recent share price appreciation, BFH's valuation metrics suggest there might still be room for growth. The company's P/E ratio of 8.09 and Price to Book ratio of 0.81 indicate that the stock may be undervalued relative to its earnings and book value. This could explain why Director Fawcett sees potential in increasing his stake.
However, investors should note that Bread Financial faces some challenges. An InvestingPro Tip cautions that the company "suffers from weak gross profit margins," which could impact future profitability. Additionally, the company's revenue growth has been negative, with a -13.95% decline in the last twelve months as of Q3 2024.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips for Bread Financial Holdings, providing a more comprehensive view of the company's financial health and market position.
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