COLUMBUS, OH - Bread Financial Holdings, Inc. (NYSE: BFH), a financial services company known for its tech-forward approach, has declared a new share repurchase initiative. The company's Board of Directors has authorized a plan to buy back up to $30 million of its common stock. This move is aimed at mitigating the dilutive effect of employee restricted stock unit issuances.
The repurchase program, which is in line with the company's capital priorities, allows for the acquisition of shares on the open market sporadically until December 31, 2024. The buybacks will be conducted in compliance with SEC Rule 10b-18, depending on market conditions, legal and regulatory constraints, and necessary approvals.
While the program authorizes a specific aggregate amount for repurchase, Bread Financial is not compelled to purchase any particular number of shares. Furthermore, the initiative can be halted or discontinued at any time at the company's discretion.
Bread Financial, headquartered in Columbus, Ohio, offers a range of payment, lending, and saving solutions. The company emphasizes digital-first strategies, data insights, and white-label technology to foster growth for its partners. Its suite of payment solutions includes private label and co-brand credit cards, as well as Bread Pay™ buy now, pay later products. Additionally, Bread Financial provides direct-to-consumer products like the Bread Cashback™ American Express (NYSE:AXP)® Credit Card and Bread Savings™ accounts.
The announcement of this share buyback plan is based on a press release statement from Bread Financial Holdings, Inc.
InvestingPro Insights
In light of Bread Financial Holdings, Inc.'s recent announcement to initiate a share repurchase program, InvestingPro metrics and tips offer a deeper understanding of the company's financial health and market position. According to InvestingPro data, Bread Financial boasts an attractive P/E Ratio of 2.41, which is even more compelling when considering the adjusted figure of 2.51 for the last twelve months as of Q4 2023. This indicates that the company is trading at a low earnings multiple, a potential sign of undervaluation.
Additionally, Bread Financial has demonstrated substantial revenue growth, with a 37.1% increase over the last twelve months as of Q4 2023. This robust growth is further highlighted by an impressive gross profit margin of 76.18% for the same period, suggesting efficient operations and strong pricing power.
Investors looking at recent performance will note that the company has experienced a strong return over the last month, with a 25.65% increase in price total return. This short-term surge complements the company’s long-term commitment to shareholders, as evidenced by maintaining dividend payments for 9 consecutive years, boasting a current dividend yield of 2.23%.
For those considering a deeper dive into Bread Financial's prospects, InvestingPro offers additional insights. There are 8 more InvestingPro Tips available at https://www.investing.com/pro/BFH, which could further inform investment decisions. To access these tips and comprehensive analytics, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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