Jacobs Levy Equity Management Inc. Takes Position in Preferred Bank $PFBC

Key Points

• Jacobs Levy Equity Management Inc. acquired 8,770 shares of Preferred Bank, valued at approximately $734,000, increasing its ownership to about 0.06%.
• Preferred Bank's Board of Directors has initiated a $125 million stock buyback program, indicating confidence in the company's stock value.
• Recent earnings results show Preferred Bank reported $2.52 earnings per share, slightly surpassing analyst expectations, while a quarterly dividend of $0.75 per share reflects a 3.2% yield.

Jacobs Levy Equity Management Inc. purchased a new stake in Preferred Bank (NASDAQ:PFBC - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 8,770 shares of the bank's stock, valued at approximately $734,000. Jacobs Levy Equity Management Inc. owned approximately 0.06% of Preferred Bank at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in PFBC. NBC Securities Inc. acquired a new stake in Preferred Bank in the first quarter valued at $25,000. Meeder Asset Management Inc. acquired a new stake in Preferred Bank in the first quarter valued at $55,000. Wealth Enhancement Advisory Services LLC acquired a new stake in Preferred Bank in the fourth quarter valued at $209,000. CWM LLC raised its holdings in Preferred Bank by 10.7% in the first quarter. CWM LLC now owns 2,779 shares of the bank's stock valued at $232,000 after acquiring an additional 269 shares in the last quarter. Finally, Corton Capital Inc. bought a new stake in Preferred Bank during the first quarter valued at $238,000. 72.77% of the stock is owned by institutional investors and hedge funds.

Preferred Bank Price Performance

NASDAQ PFBC traded up $2.55 on Thursday, reaching $95.00. The company's stock had a trading volume of 96,410 shares, compared to its average volume of 64,805. Preferred Bank has a twelve month low of $71.90 and a twelve month high of $99.78. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.07 and a current ratio of 1.07. The stock has a market cap of $1.37 billion, a PE ratio of 10.04 and a beta of 0.78. The firm's 50 day moving average is $93.12 and its two-hundred day moving average is $86.68.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last issued its quarterly earnings results on Monday, July 21st. The bank reported $2.52 earnings per share for the quarter, beating analysts' consensus estimates of $2.43 by $0.09. Preferred Bank had a net margin of 25.04% and a return on equity of 16.64%. The company had revenue of $69.05 million during the quarter, compared to the consensus estimate of $70.96 million. As a group, sell-side analysts predict that Preferred Bank will post 9.81 EPS for the current year.

Preferred Bank declared that its board has approved a share repurchase program on Thursday, May 22nd that permits the company to repurchase $125.00 million in outstanding shares. This repurchase authorization permits the bank to buy up to 10.4% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is undervalued.

Preferred Bank Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 21st. Stockholders of record on Tuesday, October 7th will be given a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Tuesday, October 7th. Preferred Bank's dividend payout ratio is 31.71%.

Analyst Upgrades and Downgrades

PFBC has been the subject of several recent research reports. DA Davidson boosted their target price on shares of Preferred Bank from $90.00 to $108.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. Piper Sandler boosted their target price on shares of Preferred Bank from $96.00 to $112.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $103.67.

About Preferred Bank

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.