DA Davidson Has Weak Forecast for Preferred Bank Q2 Earnings

Preferred Bank (NASDAQ:PFBC - Free Report) - Stock analysts at DA Davidson reduced their Q2 2025 earnings per share (EPS) estimates for shares of Preferred Bank in a report issued on Friday, June 27th. DA Davidson analyst G. Tenner now forecasts that the bank will earn $2.40 per share for the quarter, down from their prior forecast of $2.41. DA Davidson has a "Neutral" rating and a $90.00 price objective on the stock. The consensus estimate for Preferred Bank's current full-year earnings is $9.81 per share.

Other equities analysts have also issued research reports about the stock. Stephens reiterated an "equal weight" rating and set a $91.00 price target on shares of Preferred Bank in a report on Tuesday, April 29th. Piper Sandler lowered their target price on Preferred Bank from $108.00 to $96.00 and set an "overweight" rating for the company in a research report on Tuesday, April 29th.

Preferred Bank Trading Up 1.6%

PFBC traded up $1.40 during trading on Monday, reaching $90.42. 83,911 shares of the company's stock were exchanged, compared to its average volume of 88,997. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.19. Preferred Bank has a one year low of $71.90 and a one year high of $99.78. The firm has a fifty day moving average price of $83.62 and a two-hundred day moving average price of $84.73. The stock has a market capitalization of $1.30 billion, a PE ratio of 9.60 and a beta of 0.69.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last released its quarterly earnings data on Friday, April 25th. The bank reported $2.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.33 by ($0.10). The firm had revenue of $65.96 million during the quarter, compared to analyst estimates of $70.78 million. Preferred Bank had a net margin of 24.87% and a return on equity of 16.88%. During the same period in the prior year, the company earned $2.44 EPS.

Preferred Bank declared that its board has authorized a stock buyback program on Thursday, May 22nd that allows the company to repurchase $125.00 million in shares. This repurchase authorization allows the bank to purchase up to 10.4% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its stock is undervalued.

Preferred Bank Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 22nd. Investors of record on Tuesday, July 8th will be issued a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 3.32%. The ex-dividend date of this dividend is Tuesday, July 8th. Preferred Bank's payout ratio is presently 31.85%.

Institutional Trading of Preferred Bank

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Nuveen LLC acquired a new position in shares of Preferred Bank in the 1st quarter worth approximately $33,915,000. Kennedy Capital Management LLC raised its stake in Preferred Bank by 274.2% during the fourth quarter. Kennedy Capital Management LLC now owns 90,218 shares of the bank's stock worth $7,793,000 after buying an additional 66,107 shares during the last quarter. American Century Companies Inc. lifted its holdings in Preferred Bank by 44.7% in the fourth quarter. American Century Companies Inc. now owns 199,628 shares of the bank's stock valued at $17,244,000 after buying an additional 61,655 shares during the period. Charles Schwab Investment Management Inc. boosted its position in Preferred Bank by 9.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 475,025 shares of the bank's stock valued at $39,741,000 after acquiring an additional 40,435 shares during the last quarter. Finally, GAMMA Investing LLC boosted its position in Preferred Bank by 9,482.9% during the first quarter. GAMMA Investing LLC now owns 36,894 shares of the bank's stock valued at $3,087,000 after acquiring an additional 36,509 shares during the last quarter. Institutional investors and hedge funds own 72.77% of the company's stock.

Preferred Bank Company Profile

Preferred Bank provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals. The company accepts checking, savings, and money market deposit accounts; fixed-rate and fixed maturity retail, and non-retail certificates of deposit; and individual retirement accounts.