Preferred Bank (NASDAQ:PFBC) Shares Cross Above 200-Day Moving Average - Should You Sell?

Key Points

• Preferred Bank shares moved above their 200-day moving average, reaching $102.82 and last trading at $101.99, though the stock was down 0.6%.
• Analyst sentiment is favorable, with a consensus “Moderate Buy” rating and an average price target of $108.50; several firms recently raised their ratings or targets.
• The bank reported quarterly earnings of $2.78 per share, exceeding estimates, and declared a $0.80 quarterly dividend, equivalent to a 3.1% annualized yield.

Preferred Bank (NASDAQ:PFBC - Get Free Report)'s stock price passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $100.78 and traded as high as $102.82. Preferred Bank shares last traded at $101.99, with a volume of 87,732 shares changing hands.

Analyst Upgrades and Downgrades

PFBC has been the subject of several recent analyst reports. Weiss Ratings raised shares of Preferred Bank from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Piper Sandler boosted their target price on shares of Preferred Bank from $115.00 to $120.00 and gave the stock an "overweight" rating in a research note on Thursday, October 1st. Stephens increased their target price on Preferred Bank from $100.00 to $110.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. Finally, Benchmark raised Preferred Bank to a "strong-buy" rating in a report on Wednesday, September 23rd. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $108.50.

Preferred Bank Stock Down 0.6%

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 has a market cap of $1.47 billion, a price-to-earnings ratio of 9.32 and a beta of 0.57. The firm has a 50-day moving average price of $104.86 and a two-hundred day moving average price of $100.78.

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. The firm had revenue of $73.47 million during the quarter, compared to analysts' expectations of $73.60 million. Preferred Bank had a return on equity of 17.27% and a net margin of 26.54%. On average, sell-side analysts forecast that Preferred Bank will post 10.74 earnings per share for the current year.

Preferred Bank Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 19th. Shareholders of record on Monday, October 5th will be issued a dividend of $0.80 per share. The ex-dividend date of this dividend is Monday, October 5th. This represents a $3.20 dividend on an annualized basis and a yield of 3.1%. Preferred Bank's dividend payout ratio (DPR) is presently 29.25%.

Institutional Trading of Preferred Bank

Several institutional investors have recently modified their holdings of the stock. Engineers Gate Manager LP purchased a new stake in Preferred Bank in the second quarter valued at $477,000. Integrated Wealth Concepts LLC acquired a new position in Preferred Bank in the second quarter valued at $55,000. Allworth Financial LP boosted its stake in Preferred Bank by 4.1% in the second quarter. Allworth Financial LP now owns 4,200 shares of the bank's stock valued at $446,000 after acquiring an additional 164 shares in the last quarter. Nykredit A S purchased a new position in shares of Preferred Bank during the second quarter worth about $102,000. Finally, Corient Private Wealth LP purchased a new position in shares of Preferred Bank during the second quarter worth about $874,000. Hedge funds and other institutional investors own 72.77% of the company's stock.

About Preferred Bank

Preferred Bank NASDAQ: PFBC is a commercial bank headquartered in Los Angeles, California. Founded in 1991, the bank provides banking and financial services to businesses, professionals, real estate investors and individuals, with a particular focus on small and medium-sized businesses and communities in California and New York.

The bank offers a range of deposit products, including checking, savings, money market accounts and certificates of deposit. Its lending activities include commercial real estate loans, commercial and industrial financing, residential real estate loans, small business loans and consumer lending.

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