Preferred Bank (NASDAQ:PFBC) Sees Strong Trading Volume - Still a Buy?

Key Points

• Preferred Bank shares traded at $102.45, down from $103.60, while volume fell 29% from the prior session to 76,146 shares.
• Analyst sentiment remains mixed: Stephens raised its price target to $110, but the consensus rating is still “Hold” with an average target of $106.25.
• The bank exceeded quarterly EPS expectations, reporting $2.78 versus the $2.65 consensus estimate, and maintains a quarterly dividend of $0.80 per share, representing a 3.1% annualized yield.

Preferred Bank (NASDAQ:PFBC - Get Free Report) shares saw unusually-high trading volume on Thursday . 76,146 shares traded hands during trading, a decline of 29% from the previous session's volume of 106,983 shares.The stock last traded at $102.45 and had previously closed at $103.60.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on PFBC. Stephens increased their price target on Preferred Bank from $100.00 to $110.00 and gave the company an "equal weight" rating in a research report on Thursday, July 23rd. Weiss Ratings upgraded shares of Preferred Bank from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, June 8th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Preferred Bank presently has an average rating of "Hold" and an average target price of $106.25.

Preferred Bank Stock Down 0.5%

The firm has a market cap of $1.49 billion, a PE ratio of 9.37 and a beta of 0.56. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.08 and a current ratio of 1.08. The firm's 50-day moving average price is $105.10 and its two-hundred day moving average price is $97.12.

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

Preferred Bank Announces Dividend

The company also recently announced 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 was Tuesday, July 7th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.1%. Preferred Bank's payout ratio is 29.25%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in PFBC. Public Employees Retirement System of Ohio purchased a new stake in Preferred Bank in the second quarter valued at approximately $25,000. EverSource Wealth Advisors LLC grew its position in shares of 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 acquiring an additional 306 shares during the last quarter. Quarry LP increased its holdings 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 acquiring an additional 498 shares during the period. Johnson Financial Group Inc. purchased a new stake in Preferred Bank in the 3rd quarter valued at $70,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in Preferred Bank in the 4th quarter valued at $91,000. Hedge funds and other institutional investors own 72.77% of the company's stock.

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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