Preferred Bank (NASDAQ:PFBC) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Preferred Bank has a consensus analyst rating of Hold from seven brokerages, with an average 12-month price target of $106.25. Recent analyst actions were mixed but slightly positive, including price target increases from Stephens and Piper Sandler.
• The bank’s latest quarter was solid, as Q2 EPS came in at $2.78, beating estimates of $2.65 and rising from $2.52 a year earlier. Net income also increased to $33.5 million, helped by higher net interest income and supported by strong loan growth and improved asset quality.
• Results were not perfect, since revenue of $73.47 million came in just below expectations of $73.60 million. Preferred Bank also paid a quarterly dividend of $0.80 per share, equal to a 3.2% annualized yield.

Shares of Preferred Bank (NASDAQ:PFBC - Get Free Report) have earned an average recommendation of "Hold" from the seven brokerages that are covering the firm, MarketBeat reports. Five investment analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $106.25.

Several equities analysts have recently 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. Weiss Ratings raised Preferred Bank from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, June 8th. Finally, Piper Sandler raised their target price on shares of Preferred Bank from $105.00 to $111.00 and gave the stock an "overweight" rating in a report on Monday, April 27th.

More Preferred Bank News

Here are the key news stories impacting Preferred Bank this week:

• Positive Sentiment: Preferred Bank reported Q2 2026 EPS of $2.78, beating the consensus estimate of $2.65 and rising from $2.52 a year ago, suggesting stronger profitability. Article Title
• Positive Sentiment: The bank said net income increased to $33.5 million, helped by a $4.7 million sequential increase in net interest income, indicating improved core banking performance. Article Title
• Positive Sentiment: Commentary from the earnings call highlighted strong loan growth and improved asset quality, which can support investor confidence in future earnings stability. Article Title
• Neutral Sentiment: Revenue of $73.47 million was slightly below the consensus estimate of $73.60 million, so top-line results were essentially mixed. Article Title
• Neutral Sentiment: One market recap described the quarter as broadly in line with expectations, suggesting the stock may also be influenced by the balance between the EPS beat and modest revenue shortfall. Article Title

Preferred Bank Price Performance

PFBC opened at $101.38 on Friday. The stock has a market cap of $1.46 billion, a P/E ratio of 9.27 and a beta of 0.55. Preferred Bank has a 12 month low of $81.50 and a 12 month high of $112.26. The company has a quick ratio of 1.06, a current ratio of 1.08 and a debt-to-equity ratio of 0.44. The company has a fifty day simple moving average of $100.75 and a 200 day simple moving average of $94.86.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The bank reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.65 by $0.13. Preferred Bank had a return on equity of 17.27% and a net margin of 26.54%.The firm had revenue of $73.47 million for the quarter, compared to analyst estimates of $73.60 million. On average, research analysts expect that Preferred Bank will post 10.7 EPS for the current year.

Preferred Bank Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Tuesday, July 7th were given a dividend of $0.80 per share. The ex-dividend date of this dividend was Tuesday, July 7th. This represents a $3.20 annualized dividend and a dividend yield of 3.2%. Preferred Bank's dividend payout ratio is currently 29.25%.

Institutional Investors Weigh In On Preferred Bank

A number of hedge funds and other institutional investors have recently made changes to their positions in PFBC. EverSource Wealth Advisors LLC boosted its stake in Preferred Bank by 1,224.0% in 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 during the period. Quarry LP raised its stake in shares of Preferred Bank by 1,992.0% in the 3rd quarter. Quarry LP now owns 523 shares of the bank's stock valued at $47,000 after purchasing an additional 498 shares during the period. Johnson Financial Group Inc. acquired a new stake in shares of Preferred Bank in the 3rd quarter valued at about $70,000. Kemnay Advisory Services Inc. bought a new stake in shares of Preferred Bank in the fourth quarter valued at about $91,000. Finally, Clearstead Advisors LLC lifted its holdings in shares of Preferred Bank by 192.1% in the fourth quarter. Clearstead Advisors LLC now owns 1,072 shares of the bank's stock valued at $101,000 after purchasing an additional 705 shares in the last quarter. 72.77% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.