Was David Tepper Right About These 5 Stocks?

2. Bread Financial Holdings, Inc. (NYSE:BFH)

No. of Hedge Fund Holders: 31

Performance of BFH Over the Past 6 Months: -21%

Bread Financial Holdings, Inc. (NYSE:BFH), formerly Alliance Data Systems Corporation, provides data-driven marketing, loyalty, and payment solutions, and it serves large, consumer-based industries. The company helps its partners create and increase customer loyalty across several touchpoints by using traditional, digital, mobile, and emerging technologies.

In FY22, Bread Financial Holdings, Inc. (NYSE:BFH) expects total revenue growth to be aligned with average loan growth, and an improved net interest margin should lend some support. It continues to expect a net loss rate in the low-to-mid 5% range as credit metrics start to normalize from historically low rates.

On 12^th May, Wolfe Research analyst Bill Carcache downgraded the ratings on credit card issuers as the analyst predicts a recession. According to Bill Carcache, credit card issuers having greater exposure to prime and super-prime credits can see some pressure. The analyst has reduced the price target on Bread Financial Holdings, Inc. (NYSE:BFH) to $49 from $60.

Out of 912 hedge funds tracked by Insider Monkey, 31 hedge funds held stakes in Bread Financial Holdings, Inc. (NYSE:BFH) at the end of the first quarter, down from 35 hedge funds in the previous quarter.