Formed by a combination of JCPenney's credit card processing unit and The Limited's credit card bank business, Bread Financial Holdings Inc is a provider of private label and co-branded credit cards, loyalty programs, and marketing services. The company's most financially significant unit is its credit card business that partners with retailers to jointly market Bread's credit cards to their customers. The company also retains minority interest in its recently spun-off LoyaltyOne division, which operates the largest airline miles loyalty program in Canada and offers marketing services to grocery chains in Europe and Asia.
As of the latest available data, Bread Financial Holdings Inc has an outstanding share count of 50.22 million. Institutional ownership stands at 43.35 million shares, constituting 86.8% of the total shares. Meanwhile, insiders hold 4.11 million shares, accounting for 8.19% of the total share count.
Recent Performance and Market Capitalization
Bread Financial Holdings Inc experienced a decline of about 7.71% in its stock value over the past week. As of Oct 12 2023, the stock fell by 1.18%, contrasting its three-month return of -7.89. A closer look reveals fluctuations in its market cap, which rose to $1.57 billion in the most recent quarter from $1.52 billion in the preceding one. This volatility has sparked keen interest in the company's ownership trends.
Institutional Ownership and Key Players
Bread Financial Holdings Inc's institutional ownership history reveals the levels of trust and confidence that major players have in the company's future. As of 2022-02-28, Bread Financial Holdings Inc's institutional ownership level is 86.8%, up from institutional ownership of 82.39% as of 2021-11-30 and up from institutional ownership of 72.29% from a year ago.
Among the most significant stakeholders, the top fund managers owning chunks of Bread Financial Holdings Inc's stock are Richard Pzena (Trades, Portfolio), HOTCHKIS & WILEY (Trades, Portfolio), and George Soros (Trades, Portfolio), with 1.2%, 0.72%, and 0.17% of shares outstanding respectively.
Delving into Earnings: Past and Future
Over the past three years, Bread Financial Holdings Inc's Ebitda growth averaged 0% per year, which is worse than 0% of 287 companies in the Credit Services industry. This growth extends to the five-year marker, with a growth of 0%.
Looking forward, the estimated earnings growth for Bread Financial Holdings Inc is 10.1% per year, higher than the earnings growth of -23.4% during the past three years. The EPS Growth Rate (Future 3Y to 5Y Estimate) is projected using a combination of historical data and industry trends, factoring in company-specific elements, broader economic conditions, and anticipated market dynamics.
Insider Ownership and Activities
Insider ownership offers insights into the convictions of the company's board directors and C-level employees. Bread Financial Holdings Inc's insider ownership is approximately 8.19% as of 2023-08-31, compared to insider ownership of 7.69% from a year ago, reflecting the increased faith of those intimately familiar with the company's operations.
During the past three months, Bread Financial Holdings Inc had 1 insider buy transactions: Roger H Ballou, Director bought 2,400 shares on 2023-07-31.
Next Steps
In the ever-evolving realm of stocks, understanding the nuances of ownership and earnings is critical. Bread Financial Holdings Inc's recent dip is a case study in how major players react to market shifts, and their movements offer crucial insights for potential investors. As always, a holistic view, combining both past performance and future projections, remains key to sound investment decisions.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
