Preferred Bank (NASDAQ:PFBC) Shares Up 4.6% Following Earnings Beat

Key Points

• Preferred Bank's shares increased by 4.6% after reporting $2.84 EPS, surpassing analysts' expectations of $2.57 and generating $74.98 million in revenue.
• The bank announced a quarterly dividend of $0.75, with an annualized yield of 3.3%, set to be paid to investors of record on October 7th.
• Analysts have set new price targets for PFBC, with DA Davidson increasing theirs from $90.00 to $108.00 and Piper Sandler raising theirs from $96.00 to $112.00, indicating positive sentiment towards the stock.

Preferred Bank (NASDAQ:PFBC - Get Free Report) shares shot up 4.6% on Tuesday following a better than expected earnings announcement. The company traded as high as $91.54 and last traded at $90.56. 18,102 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 93,095 shares. The stock had previously closed at $86.60.

The bank reported $2.84 EPS for the quarter, topping analysts' consensus estimates of $2.57 by $0.27. The firm had revenue of $74.98 million during the quarter, compared to the consensus estimate of $72.74 million. Preferred Bank had a net margin of 25.04% and a return on equity of 16.64%. During the same quarter in the previous year, the firm posted $2.46 earnings per share.

Preferred Bank Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 21st. Investors of record on Tuesday, October 7th will be given a $0.75 dividend. The ex-dividend date of this dividend is Tuesday, October 7th. This represents a $3.00 dividend on an annualized basis and a yield of 3.3%. Preferred Bank's payout ratio is 31.71%.

Analysts Set New Price Targets

PFBC has been the subject of a number of research reports. Weiss Ratings reissued a "buy (b)" rating on shares of Preferred Bank in a research report on Wednesday, October 8th. DA Davidson boosted their price target on shares of Preferred Bank from $90.00 to $108.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Finally, Piper Sandler boosted their price target on shares of Preferred Bank from $96.00 to $112.00 and gave the company an "overweight" rating in a research report on Tuesday, July 22nd. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $103.67.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC raised its holdings in 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. Meeder Asset Management Inc. acquired a new position in Preferred Bank during the first quarter worth about $55,000. Copeland Capital Management LLC grew its position in shares of Preferred Bank by 16.2% in the second quarter. Copeland Capital Management LLC now owns 845 shares of the bank's stock valued at $73,000 after purchasing an additional 118 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of Preferred Bank by 350.7% in the second quarter. NewEdge Advisors LLC now owns 1,316 shares of the bank's stock valued at $114,000 after purchasing an additional 1,024 shares during the last quarter. Finally, Rexford Capital Inc. acquired a new stake in shares of Preferred Bank in the second quarter valued at approximately $128,000. 72.77% of the stock is owned by hedge funds and other institutional investors.

Preferred Bank Stock Up 5.6%

The firm's 50-day moving average price is $91.97 and its 200 day moving average price is $87.75. The firm has a market capitalization of $1.32 billion, a price-to-earnings ratio of 9.66 and a beta of 0.71. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.07 and a quick ratio of 1.07.

Preferred Bank Company Profile

Preferred Bank provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals. The company accepts checking, savings, and money market deposit accounts; fixed-rate and fixed maturity retail, and non-retail certificates of deposit; and individual retirement accounts.

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