Preferred Bank (NASDAQ:PFBC) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Preferred Bank has a consensus “Hold” rating among seven analysts, with five holds and two buys; the average 12-month price target is $106.25.
• Institutional investors have increased their positions, and institutions now own 72.77% of PFBC shares. Goldman Sachs, Qube Research and other firms were among those adding holdings.
• The bank exceeded quarterly EPS expectations, reporting $2.78 versus the $2.65 consensus estimate, and maintains a quarterly dividend of $0.80, equivalent to a 3.0% annualized yield.

Preferred Bank (NASDAQ:PFBC - Get Free Report) has received a consensus rating of "Hold" from the seven analysts that are covering the stock, Marketbeat reports. Five research analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $106.25.

A number of equities research analysts have weighed in on PFBC shares. Stephens lifted their price objective on Preferred Bank from $100.00 to $110.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. Piper Sandler increased their target price on Preferred Bank from $105.00 to $111.00 and gave the stock an "overweight" rating in a research note on Monday, April 27th. Finally, Weiss Ratings raised Preferred Bank from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, June 8th.

Institutional Investors Weigh In On Preferred Bank

Several institutional investors have recently made changes to their positions in PFBC. Bank of New York Mellon Corp acquired a new position in shares of Preferred Bank during the 2nd quarter worth $12,352,000. Qube Research & Technologies Ltd boosted its holdings in Preferred Bank by 288.4% during the third quarter. Qube Research & Technologies Ltd now owns 74,636 shares of the bank's stock worth $6,746,000 after buying an additional 55,418 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in Preferred Bank by 40,612.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 52,112 shares of the bank's stock worth $4,896,000 after buying an additional 51,984 shares in the last quarter. Kennedy Capital Management LLC boosted its holdings in Preferred Bank by 19.9% during the fourth quarter. Kennedy Capital Management LLC now owns 199,419 shares of the bank's stock worth $18,831,000 after buying an additional 33,157 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its position in Preferred Bank by 19.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 206,622 shares of the bank's stock worth $19,511,000 after buying an additional 33,124 shares during the period. 72.77% of the stock is currently owned by hedge funds and other institutional investors.

Preferred Bank Stock Down 0.4%

PFBC stock opened at $107.47 on Tuesday. The stock has a market capitalization of $1.55 billion, a PE ratio of 9.82 and a beta of 0.56. The company has a fifty day moving average of $104.55 and a 200-day moving average of $96.26. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.08 and a current ratio of 1.08. Preferred Bank has a one year low of $81.50 and a one year high of $112.26.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The bank reported $2.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.65 by $0.13. The business had revenue of $73.47 million for the quarter, compared to analyst estimates of $73.60 million. Preferred Bank had a net margin of 26.54% and a return on equity of 17.27%. As a group, analysts expect that Preferred Bank will post 10.71 EPS for the current year.

Preferred Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Tuesday, July 7th were given a $0.80 dividend. The ex-dividend date was Tuesday, July 7th. This represents a $3.20 annualized dividend and a yield of 3.0%. Preferred Bank's dividend payout ratio is presently 29.25%.

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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