Preferred Bank (NASDAQ:PFBC) Stock Has Consensus Target Price of $108.50

Key Points

• Analyst sentiment is moderately positive: Eight firms assign Preferred Bank a consensus “Moderate Buy” rating, with an average 12-month price target of $108.50.
• Recent financial performance exceeded expectations: The bank reported quarterly EPS of $2.78, beating estimates of $2.65, while revenue came in at $73.47 million.
• Preferred Bank announced a quarterly dividend of $0.80 per share, equivalent to $3.20 annually and a 3.1% yield; institutional investors own 72.77% of the stock.

Shares of Preferred Bank (NASDAQ:PFBC - Get Free Report) have been given a consensus rating of "Moderate Buy" by the eight ratings firms that are covering the company, MarketBeat.com reports. Five research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $108.50.

A number of research analysts recently weighed in on the stock. Benchmark upgraded shares of Preferred Bank to a "strong-buy" rating in a research note on Wednesday, September 23rd. Piper Sandler increased their target price on Preferred Bank from $115.00 to $120.00 and gave the stock an "overweight" rating in a research report on Thursday, October 1st. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Preferred Bank in a report on Friday, September 4th. Finally, Stephens lifted their price target on Preferred Bank from $100.00 to $110.00 and gave the company an "equal weight" rating in a research report on Thursday, July 23rd.

Preferred Bank Stock Performance

NASDAQ:PFBC opened at $104.54 on Wednesday. Preferred Bank has a 1 year low of $81.50 and a 1 year high of $112.26. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.08 and a quick ratio of 1.08. The business has a fifty day simple moving average of $105.20 and a two-hundred day simple moving average of $100.20. The company has a market capitalization of $1.51 billion, a P/E ratio of 9.56 and a beta of 0.57.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The bank reported $2.78 EPS for the quarter, beating the consensus estimate of $2.65 by $0.13. The business had revenue of $73.47 million for the quarter, compared to the consensus estimate of $73.60 million. Preferred Bank had a net margin of 26.54% and a return on equity of 17.27%. On average, analysts expect that Preferred Bank will post 10.74 earnings per share for the current year.

Preferred Bank Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 19th. Investors of record on Monday, October 5th will be issued a dividend of $0.80 per share. The ex-dividend date of this dividend is Monday, October 5th. This represents a $3.20 dividend on an annualized basis and a yield of 3.1%. Preferred Bank's dividend payout ratio is 29.25%.

Hedge Funds Weigh In On Preferred Bank

Large investors have recently modified their holdings of the company. Y Intercept Hong Kong Ltd increased its holdings in shares of Preferred Bank by 86.8% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 20,539 shares of the bank's stock worth $1,863,000 after buying an additional 9,546 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Preferred Bank during the 2nd quarter valued at $12,352,000. Hsbc Holdings PLC lifted its holdings in shares of Preferred Bank by 18.8% during the 1st quarter. Hsbc Holdings PLC now owns 171,757 shares of the bank's stock worth $15,606,000 after acquiring an additional 27,169 shares during the last quarter. Louisiana State Employees Retirement System bought a new stake in shares of Preferred Bank during the 1st quarter worth $453,000. Finally, Corient Private Wealth LP purchased a new position in Preferred Bank in the second quarter worth $874,000. 72.77% of the stock is currently owned by institutional investors.

About Preferred Bank

Preferred Bank NASDAQ: PFBC is a commercial bank headquartered in Los Angeles, California. Founded in 1991, the bank provides banking and financial services to businesses, professionals, real estate investors and individuals, with a particular focus on small and medium-sized businesses and communities in California and New York.

The bank offers a range of deposit products, including checking, savings, money market accounts and certificates of deposit. Its lending activities include commercial real estate loans, commercial and industrial financing, residential real estate loans, small business loans and consumer lending.

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