Preferred Bank (NASDAQ:PFBC) Announces Earnings Results

Key Points

• Preferred Bank reported earnings of $2.84 per share for the quarter, surpassing analysts' estimates by $0.27, with a net margin of 25.04% and return on equity of 16.64%.
• The bank declared a quarterly dividend of $0.75 per share, representing an annualized $3.00 and a yield of 3.5%.
• Institutional investors currently hold 72.77% of Preferred Bank's stock, with several firms increasing their stakes significantly in recent quarters.

Preferred Bank (NASDAQ:PFBC - Get Free Report) released its quarterly earnings results on Monday. The bank reported $2.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.57 by $0.27, Zacks reports. Preferred Bank had a net margin of 25.04% and a return on equity of 16.64%.

Preferred Bank Price Performance

Shares of Preferred Bank stock traded up $1.29 during midday trading on Monday, reaching $86.60. The company had a trading volume of 69,316 shares, compared to its average volume of 93,532. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $1.25 billion, a price-to-earnings ratio of 9.15 and a beta of 0.71. The stock has a fifty day simple moving average of $92.06 and a 200 day simple moving average of $87.68. Preferred Bank has a 1-year low of $71.90 and a 1-year high of $99.78.

Preferred Bank Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 21st. Investors of record on Tuesday, October 7th will be issued a $0.75 dividend. The ex-dividend date of this dividend is Tuesday, October 7th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 3.5%. Preferred Bank's dividend payout ratio (DPR) is currently 31.71%.

Institutional Trading of Preferred Bank

Hedge funds and other institutional investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Preferred Bank by 2.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,266 shares of the bank's stock worth $608,000 after acquiring an additional 202 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Preferred Bank by 19.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 25,931 shares of the bank's stock worth $2,169,000 after acquiring an additional 4,158 shares during the period. Jane Street Group LLC grew its holdings in Preferred Bank by 81.0% during the 1st quarter. Jane Street Group LLC now owns 66,428 shares of the bank's stock worth $5,557,000 after acquiring an additional 29,729 shares during the period. EverSource Wealth Advisors LLC grew its holdings in Preferred Bank by 1,224.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 331 shares of the bank's stock worth $29,000 after acquiring an additional 306 shares during the period. Finally, Jump Financial LLC grew its holdings in Preferred Bank by 148.7% during the 2nd quarter. Jump Financial LLC now owns 14,225 shares of the bank's stock worth $1,231,000 after acquiring an additional 8,505 shares during the period. Institutional investors and hedge funds own 72.77% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on PFBC shares. Piper Sandler lifted their target price on Preferred Bank from $96.00 to $112.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 22nd. DA Davidson lifted their target price on Preferred Bank from $90.00 to $108.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 22nd. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Preferred Bank in a research report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Preferred Bank currently has an average rating of "Moderate Buy" and an average price target of $103.67.

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.

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