Preferred Bank Plans Quarterly Dividend of $0.75 (NASDAQ:PFBC)

Key Points

• Preferred Bank has announced a quarterly dividend of $0.75 per share, to be paid on October 21st to shareholders of record as of October 7th, representing a dividend yield of 3.3%.
• The bank currently has a payout ratio of 30.6% and is expected to maintain its dividend coverage with anticipated earnings of $10.20 per share next year.
• Additionally, Preferred Bank is implementing a stock buyback plan allowing for the repurchase of up to $125 million worth of its shares, indicating management's belief that the stock is undervalued.

Preferred Bank (NASDAQ:PFBC - Get Free Report) announced a quarterly dividend on Tuesday, September 16th, RTT News reports. Stockholders of record on Tuesday, October 7th will be paid a dividend of 0.75 per share by the bank on Tuesday, October 21st. This represents a c) dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Tuesday, October 7th.

Preferred Bank has a dividend payout ratio of 30.6% meaning its dividend is sufficiently covered by earnings. Analysts expect Preferred Bank to earn $10.20 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 29.4%.

Preferred Bank Trading Down 1.5%

Shares of NASDAQ PFBC traded down $1.44 during midday trading on Friday, reaching $93.56. 345,790 shares of the stock were exchanged, compared to its average volume of 67,732. The company has a 50 day simple moving average of $93.16 and a 200 day simple moving average of $86.73. The stock has a market capitalization of $1.35 billion, a P/E ratio of 9.89 and a beta of 0.78. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.07 and a current ratio of 1.07. Preferred Bank has a twelve month low of $71.90 and a twelve month high of $99.78.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last posted its earnings results on Monday, July 21st. The bank reported $2.52 earnings per share for the quarter, beating the consensus estimate of $2.43 by $0.09. The firm had revenue of $69.05 million during the quarter, compared to the consensus estimate of $70.96 million. Preferred Bank had a net margin of 25.04% and a return on equity of 16.64%. As a group, equities analysts expect that Preferred Bank will post 9.81 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Piper Sandler lifted their price objective on shares of Preferred Bank from $96.00 to $112.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 22nd. DA Davidson increased their price target on shares of Preferred Bank from $90.00 to $108.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 22nd. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $103.67.

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.