Nuveen LLC Makes New $33.92 Million Investment in Preferred Bank $PFBC

Key Points

• Nuveen LLC has acquired 410,030 shares of Preferred Bank, totaling approximately $33.9 million, representing about 2.84% ownership of the bank.
• Preferred Bank's quarterly earnings report revealed an EPS of $2.52, surpassing estimates, while a $0.75 dividend was recently paid, offering an annual yield of 3.3%.
• Research analysts raised their price targets for Preferred Bank, with Piper Sandler increasing their target from $96 to $112 and DA Davidson from $90 to $108.

Nuveen LLC acquired a new stake in Preferred Bank (NASDAQ:PFBC - Free Report) during the first quarter, according to its most recent filing with the SEC. The firm acquired 410,030 shares of the bank's stock, valued at approximately $33,915,000. Nuveen LLC owned about 2.84% of Preferred Bank as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of the company. Charles Schwab Investment Management Inc. boosted its position in Preferred Bank by 9.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 475,025 shares of the bank's stock valued at $39,741,000 after buying an additional 40,435 shares during the last quarter. Vanguard Group Inc. boosted its position in Preferred Bank by 0.9% in the 1st quarter. Vanguard Group Inc. now owns 890,350 shares of the bank's stock valued at $74,487,000 after buying an additional 8,074 shares during the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management boosted its position in Preferred Bank by 23.8% in the 1st quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 4,332 shares of the bank's stock valued at $362,000 after buying an additional 834 shares during the last quarter. GSA Capital Partners LLP boosted its position in Preferred Bank by 8.2% in the 1st quarter. GSA Capital Partners LLP now owns 6,411 shares of the bank's stock valued at $536,000 after buying an additional 487 shares during the last quarter. Finally, Meeder Asset Management Inc. acquired a new stake in Preferred Bank during the 1st quarter worth $55,000. 72.77% of the stock is currently owned by institutional investors.

Preferred Bank Stock Performance

Preferred Bank stock traded up $0.34 during midday trading on Thursday, reaching $91.45. 2,190 shares of the company's stock were exchanged, compared to its average volume of 97,367. Preferred Bank has a 52 week low of $71.90 and a 52 week high of $99.78. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of 9.67 and a beta of 0.75. The stock's 50-day simple moving average is $89.88 and its 200 day simple moving average is $86.04. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.07 and a current ratio of 1.07.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last released its quarterly earnings results on Monday, July 21st. The bank reported $2.52 EPS for the quarter, topping 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 business had revenue of $69.05 million for the quarter, compared to analyst estimates of $70.96 million. On average, analysts expect that Preferred Bank will post 9.81 earnings per share for the current fiscal year.

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 shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is undervalued.

Preferred Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 22nd. Investors of record on Tuesday, July 8th were given a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a dividend yield of 3.3%. The ex-dividend date was Tuesday, July 8th. Preferred Bank's dividend payout ratio is currently 31.71%.

Wall Street Analyst Weigh In

A number of analysts have commented on PFBC shares. Piper Sandler lifted their target price on shares of Preferred Bank from $96.00 to $112.00 and gave the stock an "overweight" rating in a report on Tuesday, July 22nd. Stephens reaffirmed an "equal weight" rating and set a $91.00 target price on shares of Preferred Bank in a report on Tuesday, April 29th. Finally, DA Davidson lifted their target price on shares of Preferred Bank from $90.00 to $108.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $103.67.

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.