Bread Financial Issues New Series B Preferred Shares

An update from Bread Financial Holdings ( (BFH) ) is now available.

On May 11, 2026, Bread Financial Holdings filed a Certificate of Designations in Delaware, effective May 12, 2026, establishing the terms of its 8.875% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, with a $1,000 per share liquidation preference and restrictions on junior and parity stock dividends if Series B dividends are not set aside. The filing, which amends the company’s Third Amended and Restated Certificate of Incorporation, defines the voting, dividend, redemption and liquidation rights of the Series B Preferred Stock and aligns holders’ rights through associated depositary arrangements.

On May 12, 2026, the company issued and sold 5,400,000 depositary shares, each representing a 1/40th interest in a share of the Series B Preferred Stock, including 600,000 shares sold under an option granted in a May 5, 2026 underwriting agreement with a syndicate of major investment banks. This issuance, structured under a deposit agreement with Computershare entities, provides investors with proportional rights to the preferred stock and strengthens Bread Financial’s capital position by broadening its investor base through a listed preferred-style security.

The most recent analyst rating on (BFH) stock is a Buy with a $99.00 price target. To see the full list of analyst forecasts on Bread Financial Holdings stock, see the BFH Stock Forecast page.

Spark’s Take on BFH Stock

According to Spark, TipRanks’ AI Analyst, BFH is a Outperform.

BFH scores well on valuation (very low P/E) and a generally constructive earnings backdrop (reaffirmed outlook, improving credit metrics, strong capital/liquidity, and ongoing buybacks). The main constraints are cyclical financial performance with still-meaningful leverage and mixed near-term technical momentum.

To see Spark’s full report on BFH stock, click here.

More about Bread Financial Holdings

Bread Financial Holdings, Inc. is a financial services company that operates as a Delaware corporation, providing credit-related products and services through various financing instruments. The company participates in capital markets by issuing preferred stock and related depositary shares to support its funding and capital structure needs within the financial sector.

Average Trading Volume: 683,024

Technical Sentiment Signal: Buy

Current Market Cap: $3.53B

Learn more about BFH stock on TipRanks’ Stock Analysis page.