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

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 given a dividend of 0.75 per share by the bank on Tuesday, October 21st. This represents a c) annualized dividend 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. Research 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 Stock Down 1.5%

Preferred Bank stock traded down $1.44 during midday trading on Friday, hitting $93.56. The stock had a trading volume of 345,790 shares, compared to its average volume of 67,732. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.47. The business has a fifty day moving average price of $93.16 and a 200 day moving average price of $86.75. Preferred Bank has a 12 month low of $71.90 and a 12 month high of $99.78. The stock has a market cap of $1.35 billion, a P/E ratio of 9.89 and a beta of 0.78.

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

Wall Street Analyst Weigh In

Several research firms have recently commented on PFBC. Piper Sandler lifted their price target on shares of Preferred Bank from $96.00 to $112.00 and gave the company an "overweight" rating in a report on Tuesday, July 22nd. DA Davidson lifted their price target on shares of Preferred Bank from $90.00 to $108.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, Preferred Bank has an average rating of "Hold" and a consensus price target 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.