Invesco Ltd. Reduces Stake in Preferred Bank $PFBC

Key Points

• Invesco Ltd. reduced its stake in Preferred Bank by 3.0% in Q1, owning approximately 119,747 shares worth $10,018,000 after selling 3,686 shares.
• Preferred Bank announced a $125 million stock repurchase program, allowing the company to buy back up to 10.4% of its shares, indicating confidence in its own valuation.
• The bank reported earnings of $2.52 per share for its last quarter, exceeding estimates by $0.09, despite revenue falling short of expectations at $69.05 million.

Invesco Ltd. reduced its stake in Preferred Bank (NASDAQ:PFBC - Free Report) by 3.0% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 119,747 shares of the bank's stock after selling 3,686 shares during the quarter. Invesco Ltd. owned approximately 0.83% of Preferred Bank worth $10,018,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Illinois Municipal Retirement Fund grew its stake in Preferred Bank by 2.1% in the 1st quarter. Illinois Municipal Retirement Fund now owns 6,828 shares of the bank's stock valued at $571,000 after purchasing an additional 138 shares during the period. SummerHaven Investment Management LLC grew its stake in Preferred Bank by 1.5% in the 1st quarter. SummerHaven Investment Management LLC now owns 10,412 shares of the bank's stock valued at $871,000 after purchasing an additional 157 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Preferred Bank by 3.8% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,064 shares of the bank's stock valued at $610,000 after purchasing an additional 257 shares during the period. CWM LLC grew its stake in Preferred Bank by 10.7% in the 1st quarter. CWM LLC now owns 2,779 shares of the bank's stock valued at $232,000 after purchasing an additional 269 shares during the period. Finally, NBC Securities Inc. bought a new position in Preferred Bank in the 1st quarter valued at $25,000. 72.77% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Piper Sandler upped their price objective on Preferred Bank from $96.00 to $112.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd. DA Davidson upped their price objective on Preferred Bank from $90.00 to $108.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $103.67.

Preferred Bank Stock Performance

Shares of PFBC stock traded down $0.15 on Thursday, hitting $95.15. 43,361 shares of the stock were exchanged, compared to its average volume of 96,670. The firm's 50 day moving average is $91.12 and its two-hundred day moving average is $86.13. The firm has a market capitalization of $1.37 billion, a PE ratio of 10.06 and a beta of 0.75. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.47. Preferred Bank has a one year low of $71.90 and a one year high of $99.78.

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

Preferred Bank Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 22nd. Investors of record on Tuesday, July 8th were issued a dividend of $0.75 per share. The ex-dividend date of this dividend was Tuesday, July 8th. This represents a $3.00 dividend on an annualized basis and a yield of 3.2%. Preferred Bank's dividend payout ratio is 31.71%.

Preferred Bank announced that its Board of Directors has initiated a share repurchase program on Thursday, May 22nd that authorizes the company to buyback $125.00 million in outstanding shares. This buyback authorization authorizes the bank to buy up to 10.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its stock is undervalued.

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.