Preferred Bank (NASDAQ:PFBC) Issues Quarterly Earnings Results

Key Points

• Preferred Bank reported $2.53 EPS for the quarter, missing the consensus of $2.58 by $0.05; the bank posted a 17.31% return on equity and a 26.41% net margin.
• The firm paid a quarterly dividend of $0.80 (annualized $3.20), representing a 3.4% yield with a payout ratio of about 30.8%.
• Shares rose to $94.54 after the release, valuing the company at $1.36 billion with a P/E of 9.11, and analysts have a consensus "Hold" rating with a $100.50 price target.

Preferred Bank (NASDAQ:PFBC - Get Free Report) issued its quarterly earnings results on Wednesday. The bank reported $2.53 earnings per share for the quarter, missing the consensus estimate of $2.58 by ($0.05), Zacks reports. Preferred Bank had a return on equity of 17.31% and a net margin of 26.41%.

Preferred Bank Price Performance

Shares of Preferred Bank stock traded up $0.50 on Wednesday, reaching $94.54. The company's stock had a trading volume of 74,271 shares, compared to its average volume of 102,562. The company has a market capitalization of $1.36 billion, a P/E ratio of 9.11 and a beta of 0.57. Preferred Bank has a 52-week low of $78.30 and a 52-week high of $103.05. The stock has a 50-day moving average price of $90.85 and a 200-day moving average price of $92.26. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.44.

Preferred Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, April 21st. Stockholders of record on Tuesday, April 7th were given a $0.80 dividend. The ex-dividend date was Tuesday, April 7th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.4%. Preferred Bank's payout ratio is 30.83%.

Institutional Trading of Preferred Bank

Large investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC increased its position in shares of Preferred Bank by 1,224.0% during the second quarter. EverSource Wealth Advisors LLC now owns 331 shares of the bank's stock worth $29,000 after purchasing an additional 306 shares in the last quarter. Quarry LP increased its position in shares of Preferred Bank by 1,992.0% during the third quarter. Quarry LP now owns 523 shares of the bank's stock worth $47,000 after purchasing an additional 498 shares in the last quarter. Johnson Financial Group Inc. purchased a new stake in shares of Preferred Bank during the third quarter worth approximately $70,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Preferred Bank during the fourth quarter worth approximately $91,000. Finally, NewEdge Advisors LLC increased its position in shares of Preferred Bank by 350.7% during the second quarter. NewEdge Advisors LLC now owns 1,316 shares of the bank's stock worth $114,000 after purchasing an additional 1,024 shares in the last quarter. 72.77% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on PFBC. Weiss Ratings reissued a "buy (b)" rating on shares of Preferred Bank in a report on Monday, December 29th. Brean Capital downgraded Preferred Bank from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 24th. Piper Sandler decreased their target price on Preferred Bank from $111.00 to $105.00 and set an "overweight" rating for the company in a report on Thursday, April 2nd. Stephens reaffirmed a "positive" rating on shares of Preferred Bank in a report on Monday, January 26th. Finally, Zacks Research cut Preferred Bank from a "strong-buy" rating to a "hold" rating in a research report on Friday, December 26th. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $100.50.

Preferred Bank Company Profile

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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