Bank of America Corp DE Reduces Stock Position in Preferred Bank (NASDAQ:PFBC)

Bank of America Corp DE trimmed its stake in Preferred Bank (NASDAQ:PFBC - Free Report) by 26.0% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 21,208 shares of the bank's stock after selling 7,460 shares during the period. Bank of America Corp DE owned 0.15% of Preferred Bank worth $1,832,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. Picton Mahoney Asset Management raised its position in shares of Preferred Bank by 110.7% in the 4th quarter. Picton Mahoney Asset Management now owns 550 shares of the bank's stock worth $47,000 after acquiring an additional 289 shares in the last quarter. Smartleaf Asset Management LLC raised its position in shares of Preferred Bank by 217.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 562 shares of the bank's stock worth $49,000 after acquiring an additional 385 shares in the last quarter. KBC Group NV raised its position in shares of Preferred Bank by 46.2% in the 4th quarter. KBC Group NV now owns 914 shares of the bank's stock worth $79,000 after acquiring an additional 289 shares in the last quarter. Virtu Financial LLC bought a new position in shares of Preferred Bank in the 4th quarter worth $203,000. Finally, Dark Forest Capital Management LP raised its position in shares of Preferred Bank by 16.8% in the 4th quarter. Dark Forest Capital Management LP now owns 3,384 shares of the bank's stock worth $292,000 after acquiring an additional 487 shares in the last quarter. 72.77% of the stock is owned by institutional investors.

Preferred Bank Stock Up 1.7%

NASDAQ:PFBC traded up $1.43 during mid-day trading on Friday, hitting $84.09. 53,280 shares of the company's stock traded hands, compared to its average volume of 87,552. The company has a fifty day moving average of $81.70 and a 200 day moving average of $85.96. Preferred Bank has a twelve month low of $71.43 and a twelve month high of $99.78. The company has a market capitalization of $1.21 billion, a P/E ratio of 8.73 and a beta of 0.70. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.08 and a current ratio of 1.08.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last announced its earnings results 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). Preferred Bank had a net margin of 25.00% and a return on equity of 17.80%. The business had revenue of $65.96 million for the quarter, compared to analyst estimates of $70.78 million. During the same period in the prior year, the company earned $2.44 earnings per share. On average, analysts forecast that Preferred Bank will post 9.81 EPS for the current year.

Preferred Bank Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, April 21st. Shareholders of record on Monday, April 7th were paid a dividend of $0.75 per share. The ex-dividend date was Monday, April 7th. This represents a $3.00 annualized dividend and a yield of 3.57%. Preferred Bank's payout ratio is presently 31.85%.

Preferred Bank announced that its board has authorized a stock buyback plan on Thursday, May 22nd that permits the company to buyback $125.00 million in outstanding shares. This buyback authorization permits the bank to reacquire up to 10.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Analyst Upgrades and Downgrades

PFBC has been the subject of several recent research reports. Piper Sandler reduced their price target 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. DA Davidson reduced their price target on Preferred Bank from $95.00 to $90.00 and set a "neutral" rating for the company in a research report on Monday, April 28th. Finally, Stephens reissued an "equal weight" rating and issued a $91.00 price target on shares of Preferred Bank in a research report on Tuesday, April 29th.

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.