Preferred Bank (PFBC) - What Are Investment Firms Saying About This Stock?

Key Points

• Analyst sentiment is moderately bullish: Preferred Bank has a consensus “Moderate Buy” rating, with two buy ratings, one strong-buy rating and four holds. The average 12-month price target is $113.33.
• Quarterly earnings slightly exceeded expectations: The bank reported earnings of $2.73 per share versus the $2.69 consensus estimate, though revenue of $71.7 million fell short of the $73.1 million forecast.
• Preferred Bank offers a 3.0% dividend yield: Its quarterly dividend is $0.80 per share, or $3.20 annualized, with a 29.55% payout ratio. Institutional investors own approximately 72.77% of the company.

Preferred Bank (NASDAQ:PFBC - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the seven ratings firms that are currently covering the firm, Marketbeat Ratings reports. Four equities research analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $113.33.

A number of research analysts recently commented on the stock. Benchmark raised shares of Preferred Bank to a "strong-buy" rating in a research report on Wednesday, September 23rd. Weiss Ratings raised shares of Preferred Bank from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Stephens boosted their price target on shares of Preferred Bank from $100.00 to $110.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. Finally, Piper Sandler boosted their price target on shares of Preferred Bank from $120.00 to $130.00 and gave the company an "overweight" rating in a report on Monday, October 26th.

Preferred Bank Stock Down 1.2%

Shares of Preferred Bank stock opened at $105.65 on Friday. The stock has a 50-day moving average price of $104.85 and a 200 day moving average price of $98.33. The company has a market cap of $1.52 billion, a P/E ratio of 9.76 and a beta of 0.57. The company has a current ratio of 1.05, a quick ratio of 1.04 and a debt-to-equity ratio of 0.44. Preferred Bank has a 1 year low of $81.50 and a 1 year high of $112.26.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last released its earnings results on Friday, October 23rd. The bank reported $2.73 earnings per share for the quarter, beating the consensus estimate of $2.69 by $0.04. The company had revenue of $71.70 million for the quarter, compared to analysts' expectations of $73.10 million. Preferred Bank had a return on equity of 16.84% and a net margin of 26.20%. As a group, analysts expect that Preferred Bank will post 10.82 EPS for the current fiscal year.

Preferred Bank Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, October 19th. Shareholders of record on Monday, October 5th were paid a $0.80 dividend. The ex-dividend date was Monday, October 5th. This represents a $3.20 dividend on an annualized basis and a yield of 3.0%. Preferred Bank's payout ratio is 29.55%.

Institutional Investors Weigh In On Preferred Bank

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Hsbc Holdings PLC raised its holdings in Preferred Bank by 18.8% in 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 period. Bank of New York Mellon Corp bought a new stake in Preferred Bank during the second quarter valued at about $12,352,000. Principal Financial Group Inc. boosted its holdings in Preferred Bank by 10.6% during the first quarter. Principal Financial Group Inc. now owns 77,406 shares of the bank's stock valued at $7,020,000 after acquiring an additional 7,434 shares during the period. First Trust Advisors LP boosted its holdings in Preferred Bank by 9.8% during the first quarter. First Trust Advisors LP now owns 56,129 shares of the bank's stock valued at $5,090,000 after acquiring an additional 4,991 shares during the period. Finally, Bank of America Corp DE grew its position in shares of Preferred Bank by 23.0% in the first quarter. Bank of America Corp DE now owns 36,147 shares of the bank's stock valued at $3,278,000 after purchasing an additional 6,759 shares during the last quarter. 72.77% of the stock is owned by hedge funds and other 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 and individuals, with a particular focus on commercial banking and relationship-based service.

The bank's principal offerings include commercial and industrial loans, commercial real estate financing, construction and residential real estate loans, and consumer lending. Preferred Bank also provides deposit accounts, cash-management services, online banking and other treasury-management solutions for business and personal customers.

Preferred Bank operates a network of full-service branches in California and New York, serving customers in major metropolitan markets including the greater Los Angeles area, the San Francisco Bay Area and New York City.

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