COLUMBUS, Ohio – Bread Financial Holdings, Inc. (NYSE: BFH), a financial services company known for its technology-driven approach, announced a new share repurchase initiative. The company’s board of directors approved a plan to repurchase up to $30 million of its common stock. The move is intended to mitigate the dilutive effect of issuing restricted stock to employees.
The repurchase program, consistent with the Company’s capital priorities, allows shares to be purchased on the open market from time to time until December 31, 2024. The repurchases will be conducted in accordance with SEC Rule 10b-18, depending on market conditions. legal and regulatory restrictions and required permits.
Although the program permits repurchases of a certain aggregate amount, Bread Financial is not obligated to purchase any specific number of shares. Additionally, the initiative can be stopped or terminated at any time at the discretion of the company.
Headquartered in Columbus, Ohio, Bread Financial offers a wide range of payment, lending and savings solutions. The company focuses on digital-first strategies, data analytics and white-label technologies to enable the growth of its partners. The portfolio of payment solutions includes private label and co-branded credit cards, as well as Bread Pay™ Buy Now, Pay Later products. In addition, Bread Financial provides direct-to-consumer products such as Bread Cashback™. American Express (NYSE:)® Credit Cards and Bread Savings™ Accounts.
The announcement of the stock repurchase plan is based on a press statement from Bread Financial Holdings, Inc.
InvestingAbout Insights
In light of the recent announcement by Bread Financial Holdings, Inc. on the start of the share repurchase program, InvestingPro indicators and advice provide a deeper understanding of the company’s financial condition and market position. In accordance with InvestingPro According to the data, Bread Financial boasts an attractive P/E ratio of 2.41, which becomes even more compelling when you consider the adjusted trailing-twelve-month ratio of 2.51 as of the fourth quarter of 2023. This indicates that the company is trading at a low earnings multiple, a potential sign of undervaluation.
In addition, Bread Financial has demonstrated strong revenue growth, with growth of 37.1% in the trailing twelve months through Q4 2023. This strong growth is further highlighted by an impressive gross margin of 76.18% over the same period, reflecting efficient operations and strong pricing power.
Investors looking at recent performance will note that the company has delivered strong returns over the past month, with total returns up 25.65%. This short-term surge complements the company’s long-term commitment to shareholders, as evidenced by maintaining dividend payments for 9 consecutive years, with a current dividend yield of 2.23%.
For those who want to take a deeper look into Bread Financial’s prospects, InvestingPro offers additional information. There are 8 more InvestingPro Adviсe is available at https://www.investing.com/pro/BFH and may provide additional information for making investment decisions. To access these tips and comprehensive analytics, use the coupon code. PRONEWS24 to receive an additional 10% discount on annual or biennial Pro and Pro+ subscriptions.
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