Preferred Bank (NASDAQ:PFBC) Posts Earnings Results, Beats Expectations By $0.13 EPS

Key Points

• Preferred Bank reported quarterly EPS of $2.78, topping analysts’ expectations by $0.13.
• The bank posted a strong 17.52% return on equity and 26.49% net margin, while shares opened at $106.04 and trade near their recent range high.
• Preferred Bank declared a quarterly dividend of $0.80 per share ($3.20 annualized), implying a 3.0% yield; analysts currently have an average Hold rating with a $102 target price.

Preferred Bank (NASDAQ:PFBC - Get Free Report) announced its earnings results on Wednesday. The bank reported $2.78 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.65 by $0.13, Zacks reports. Preferred Bank had a return on equity of 17.52% and a net margin of 26.49%.

Preferred Bank Price Performance

Shares of NASDAQ PFBC opened at $106.04 on Wednesday. Preferred Bank has a 1-year low of $81.50 and a 1-year high of $112.26. The company has a market cap of $1.53 billion, a PE ratio of 9.93 and a beta of 0.55. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.07 and a quick ratio of 1.06. The stock has a fifty day moving average price of $100.28 and a 200 day moving average price of $94.75.

Preferred Bank Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Tuesday, July 7th were paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Tuesday, July 7th. Preferred Bank's dividend payout ratio is 29.96%.

Analyst Ratings Changes

A number of analysts have issued reports on PFBC shares. Piper Sandler boosted their price target on shares of Preferred Bank from $105.00 to $111.00 and gave the stock an "overweight" rating in a research note on Monday, April 27th. Weiss Ratings upgraded Preferred Bank from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, June 8th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $102.00.

Institutional Trading of Preferred Bank

Several hedge funds have recently modified their holdings of PFBC. EverSource Wealth Advisors LLC boosted its position in shares of 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 purchasing an additional 306 shares in the last quarter. Quarry LP grew its holdings in Preferred Bank by 1,992.0% during the 3rd quarter. Quarry LP now owns 523 shares of the bank's stock valued at $47,000 after buying an additional 498 shares during the last quarter. Johnson Financial Group Inc. acquired a new stake in shares of Preferred Bank during the third quarter valued at $70,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Preferred Bank during the 4th quarter worth about $91,000. Finally, NewEdge Advisors LLC boosted its position in 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 acquiring an additional 1,024 shares during the last quarter. 72.77% of the stock is owned by institutional investors and hedge funds.

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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