Preferred Bank (NASDAQ:PFBC) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Consensus rating: Seven analysts give Preferred Bank a consensus “Hold” (four hold, three buy) with an average 1-year target of $102.00.
• Recent results showed a slight beat—EPS $2.79 vs. $2.78 estimate and revenue $78.07M vs. $74.54M—with a P/E of 8.44, market cap of $1.26B, and analysts forecasting about 9.81 EPS for the year.
• Dividend: the bank declared a quarterly dividend of $0.80 ($3.20 annual), a yield of 3.7%, with an ex-dividend date of April 7 and payment on April 21.

Preferred Bank (NASDAQ:PFBC - Get Free Report) has been given an average recommendation of "Hold" by the seven ratings firms that are covering the stock, Marketbeat.com reports. Four research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $102.00.

Several research analysts recently weighed in on the stock. Weiss Ratings restated a "buy (b)" rating on shares of Preferred Bank in a report on Monday, December 29th. Zacks Research downgraded Preferred Bank from a "strong-buy" rating to a "hold" rating in a research report on Friday, December 26th. Stephens reiterated a "positive" rating on shares of Preferred Bank in a report on Monday, January 26th. Brean Capital downgraded Preferred Bank from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 24th. Finally, Janney Montgomery Scott initiated coverage on Preferred Bank in a research report on Tuesday, February 24th. They set a "neutral" rating and a $100.00 target price for the company.

Preferred Bank Trading Down 1.4%

NASDAQ PFBC opened at $87.59 on Friday. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.44. The business has a fifty day simple moving average of $90.18 and a 200 day simple moving average of $92.35. Preferred Bank has a 12 month low of $71.90 and a 12 month high of $103.05. The firm has a market capitalization of $1.26 billion, a P/E ratio of 8.44 and a beta of 0.62.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last posted its earnings results on Thursday, January 22nd. The bank reported $2.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.78 by $0.01. The firm had revenue of $78.07 million during the quarter, compared to analyst estimates of $74.54 million. Preferred Bank had a net margin of 26.41% and a return on equity of 17.31%. On average, analysts predict that Preferred Bank will post 9.81 EPS for the current fiscal year.

Preferred Bank Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 21st. Investors of record on Tuesday, April 7th will be issued a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date is Tuesday, April 7th. Preferred Bank's dividend payout ratio (DPR) is 30.83%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Boston Partners boosted its holdings in Preferred Bank by 1.3% in the 2nd quarter. Boston Partners now owns 532,085 shares of the bank's stock worth $46,428,000 after buying an additional 6,963 shares during the period. Charles Schwab Investment Management Inc. lifted its position in shares of Preferred Bank by 3.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 494,827 shares of the bank's stock worth $46,727,000 after acquiring an additional 16,348 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Preferred Bank by 1.3% in the second quarter. Geode Capital Management LLC now owns 372,081 shares of the bank's stock worth $32,205,000 after acquiring an additional 4,896 shares during the period. Nuveen LLC grew its position in shares of Preferred Bank by 5.4% in the fourth quarter. Nuveen LLC now owns 356,065 shares of the bank's stock valued at $33,623,000 after purchasing an additional 18,309 shares in the last quarter. Finally, American Century Companies Inc. lifted its holdings in Preferred Bank by 15.7% during the 3rd quarter. American Century Companies Inc. now owns 337,804 shares of the bank's stock worth $30,534,000 after purchasing an additional 45,946 shares in the last quarter. 72.77% of the stock is currently owned by hedge funds and other institutional investors.

About Preferred Bank

Preferred Bank NASDAQ: PFBC is a California-chartered commercial bank headquartered in Los Angeles. The institution offers a full range of banking products and services to businesses and individuals, with a particular emphasis on commercial real estate lending, business banking, treasury management and deposit accounts. Preferred Bank operates through branch offices across Southern California and national loan production offices in major U.S. markets.

The bank's core lending portfolio focuses on commercial real estate acquisition, development and investment properties.

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