Virtus Investment Advisers Inc. Reduces Stake in Preferred Bank (NASDAQ:PFBC)

Virtus Investment Advisers Inc. trimmed its holdings in shares of Preferred Bank (NASDAQ:PFBC - Free Report) by 44.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 4,238 shares of the bank's stock after selling 3,400 shares during the quarter. Virtus Investment Advisers Inc.'s holdings in Preferred Bank were worth $366,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in PFBC. Kennedy Capital Management LLC grew its position in Preferred Bank by 274.2% during the fourth quarter. Kennedy Capital Management LLC now owns 90,218 shares of the bank's stock worth $7,793,000 after buying an additional 66,107 shares in the last quarter. American Century Companies Inc. grew its position in Preferred Bank by 44.7% during the fourth quarter. American Century Companies Inc. now owns 199,628 shares of the bank's stock worth $17,244,000 after buying an additional 61,655 shares in the last quarter. Millennium Management LLC grew its position in Preferred Bank by 28.8% during the fourth quarter. Millennium Management LLC now owns 147,702 shares of the bank's stock worth $12,758,000 after buying an additional 32,990 shares in the last quarter. Deutsche Bank AG grew its position in Preferred Bank by 405.8% during the fourth quarter. Deutsche Bank AG now owns 36,366 shares of the bank's stock worth $3,141,000 after buying an additional 29,176 shares in the last quarter. Finally, Hsbc Holdings PLC grew its position in Preferred Bank by 11.9% during the fourth quarter. Hsbc Holdings PLC now owns 261,130 shares of the bank's stock worth $22,815,000 after buying an additional 27,760 shares in the last quarter. 72.77% of the stock is currently owned by hedge funds and other institutional investors.

Preferred Bank Price Performance

Shares of PFBC traded up $0.58 during midday trading on Friday, reaching $83.08. The stock had a trading volume of 87,410 shares, compared to its average volume of 87,287. The company's 50-day moving average is $81.93 and its 200 day moving average is $86.70. Preferred Bank has a 12-month low of $71.43 and a 12-month high of $99.78. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of 8.63 and a beta of 0.69.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last posted its quarterly earnings data on Friday, April 25th. The bank reported $2.23 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.33 by ($0.10). Preferred Bank had a return on equity of 17.80% and a net margin of 25.00%. The firm had revenue of $65.96 million during the quarter, compared to analysts' expectations of $70.78 million. During the same quarter in the previous year, the company posted $2.44 earnings per share. On average, equities analysts predict that Preferred Bank will post 9.81 EPS for the current fiscal year.

Preferred Bank announced that its board has authorized a stock repurchase program on Thursday, May 22nd that allows the company to repurchase $125.00 million in shares. This repurchase authorization allows the bank to reacquire up to 10.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

Preferred Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 21st. Shareholders of record on Monday, April 7th were issued a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 3.61%. The ex-dividend date was Monday, April 7th. Preferred Bank's dividend payout ratio (DPR) is currently 31.85%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on PFBC shares. Stephens reiterated an "equal weight" rating and issued a $91.00 price objective on shares of Preferred Bank in a report on Tuesday, April 29th. DA Davidson cut their price objective on Preferred Bank from $95.00 to $90.00 and set a "neutral" rating for the company in a report on Monday, April 28th. Finally, Piper Sandler cut their price objective on Preferred Bank from $108.00 to $96.00 and set an "overweight" rating for the company in a report on Tuesday, April 29th.

Preferred Bank 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.