Universal Beteiligungs und Servicegesellschaft mbH Sells 11,073 Shares of Preferred Bank (NASDAQ:PFBC)

Key Points

• Universal Beteiligungs und Servicegesellschaft mbH significantly reduced its stake in Preferred Bank by 76.8% during the first quarter, now holding only 3,348 shares worth $280,000.
• Preferred Bank's board has authorized a $125 million stock repurchase program, which allows the company to buy back up to 10.4% of its outstanding shares, indicating a belief that the stock might be undervalued.
• The bank recently declared a quarterly dividend of $0.75 per share, which represents a 3.3% annualized yield, with a payout ratio currently standing at 31.71%.

Universal Beteiligungs und Servicegesellschaft mbH trimmed its position in shares of Preferred Bank (NASDAQ:PFBC - Free Report) by 76.8% during the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 3,348 shares of the bank's stock after selling 11,073 shares during the quarter. Universal Beteiligungs und Servicegesellschaft mbH's holdings in Preferred Bank were worth $280,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. NBC Securities Inc. purchased a new position in Preferred Bank in the 1st quarter worth about $25,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in shares of Preferred Bank in the 4th quarter worth $117,000. Wealth Enhancement Advisory Services LLC purchased a new position in Preferred Bank in the fourth quarter worth about $209,000. CWM LLC grew its position in Preferred Bank by 10.7% during the first quarter. CWM LLC now owns 2,779 shares of the bank's stock valued at $232,000 after buying an additional 269 shares during the period. Finally, Dark Forest Capital Management LP raised its holdings in 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 purchasing an additional 487 shares during the period. 72.77% of the stock is owned by hedge funds and other institutional investors.

Preferred Bank Trading Up 0.8%

Shares of NASDAQ:PFBC traded up $0.72 during trading on Friday, hitting $90.56. The company had a trading volume of 20,212 shares, compared to its average volume of 98,496. The stock has a market cap of $1.31 billion, a price-to-earnings ratio of 9.57 and a beta of 0.75. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.07 and a quick ratio of 1.07. The company has a fifty day simple moving average of $88.40 and a two-hundred day simple moving average of $85.80. 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 announced its earnings results on Monday, July 21st. The bank reported $2.52 earnings per share for the quarter, beating the consensus estimate 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 the consensus estimate of $70.96 million. As a group, equities analysts forecast that Preferred Bank will post 9.81 earnings per share for the current year.

Preferred Bank declared that its board has approved a share repurchase plan on Thursday, May 22nd that allows the company to buyback $125.00 million in outstanding shares. This buyback authorization allows the bank to reacquire up to 10.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its stock is undervalued.

Preferred Bank Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 22nd. Shareholders 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 payout ratio is 31.71%.

Analyst Ratings Changes

A number of analysts have recently issued reports on PFBC shares. DA Davidson increased their price objective on shares of Preferred Bank from $90.00 to $108.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 22nd. Piper Sandler raised their price target on Preferred Bank from $96.00 to $112.00 and gave the company an "overweight" rating in a report on Tuesday, July 22nd. Finally, Stephens reiterated an "equal weight" rating and set a $91.00 price objective 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.