In its latest SEC filing, Virginia Retirement Systems et al disclosed a 367.9% increase in its holdings of Bread Financial Holdings, Inc. during the third quarter. The public pension fund acquired an additional 30,900 shares, bringing its total position to 39,300 shares valued at approximately $2.19 million. This move underscores the fund’s confidence in Bread Financial’s credit portfolio and loyalty-driven revenue streams.

Several major asset managers also adjusted their positions in Bread Financial during the first half of the year. Franklin Resources added 16.9% more shares, now holding over 1.7 million shares worth in excess of $98 million. Arrowstreet Capital upped its stake by 25.1%, while American Century and Pzena Investment Management increased theirs by 2.0% and 9.9%, respectively. Collectively, institutional investors account for more than 99.5% of the company’s outstanding shares, indicating broad professional endorsement.

In the third quarter, Bread Financial delivered earnings per share of $4.02, surging past consensus estimates by $1.91. Revenue reached $1.24 billion, outpacing analyst projections by nearly 27%, although reflecting a slight year-over-year decline of 1.2%. Net margin stood at 10.08% and return on equity was a robust 15.97%, demonstrating effective risk management and cost controls within its private-label credit and digital installment businesses.

On October 23, Bread Financial’s board approved a $200 million share repurchase authorization, enabling the company to retire up to 7.1% of its outstanding shares through open-market transactions. Shortly thereafter, the board raised the quarterly dividend to $0.23 per share, representing a 9.5% increase year over year and signaling management’s view that the stock remains undervalued while maintaining a conservative payout ratio around 9.4%.