Preferred Bank (NASDAQ:PFBC) Stock Breaks Above 200-Day Moving Average - Here's Why

Key Points

• Preferred Bank shares broke above their 200-day moving average, reaching $106.48 before closing at $105.23. The stock has a $1.52 billion market capitalization and a beta of 0.57.
• Analyst sentiment is broadly positive: the consensus rating is “Moderate Buy” with an average price target of $108.50, while Piper Sandler recently raised its target to $120 and Benchmark upgraded the stock to “strong buy.”
• The bank exceeded quarterly EPS expectations, reporting $2.78 versus a $2.65 consensus estimate, and declared a quarterly dividend of $0.80 per share, equivalent to a 3.0% yield.

Preferred Bank (NASDAQ:PFBC - Get Free Report) passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $100.08 and traded as high as $106.48. Preferred Bank shares last traded at $105.23, with a volume of 118,720 shares trading hands.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Stephens raised their price objective on Preferred Bank from $100.00 to $110.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Preferred Bank in a report on Friday, September 4th. Benchmark upgraded shares of Preferred Bank to a "strong-buy" rating in a research report on Wednesday, September 23rd. Finally, Piper Sandler raised their price target on shares of Preferred Bank from $115.00 to $120.00 and gave the stock an "overweight" rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Preferred Bank presently has an average rating of "Moderate Buy" and a consensus target price of $108.50.

Preferred Bank Stock Performance

The company has a debt-to-equity ratio of 0.44, a current ratio of 1.08 and a quick ratio of 1.08. The stock has a market cap of $1.52 billion, a price-to-earnings ratio of 9.62 and a beta of 0.57. The firm has a fifty day moving average of $105.21 and a 200 day moving average of $100.08.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The bank reported $2.78 EPS for the quarter, topping analysts' consensus estimates of $2.65 by $0.13. The firm had revenue of $73.47 million for the quarter, compared to the consensus estimate of $73.60 million. Preferred Bank had a return on equity of 17.27% and a net margin of 26.54%. As a group, sell-side analysts forecast that Preferred Bank will post 10.74 EPS for the current year.

Preferred Bank Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, October 19th. Stockholders of record on Monday, October 5th will be issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Monday, October 5th. Preferred Bank's payout ratio is currently 29.25%.

Institutional Investors Weigh In On Preferred Bank

A number of hedge funds have recently modified their holdings of the company. Bank of New York Mellon Corp acquired a new stake in shares of Preferred Bank during the second quarter valued at about $12,352,000. Kennedy Capital Management LLC raised its stake in shares of Preferred Bank by 19.9% in the 4th quarter. Kennedy Capital Management LLC now owns 199,419 shares of the bank's stock valued at $18,831,000 after acquiring an additional 33,157 shares during the period. Azora Capital LP acquired a new position in shares of Preferred Bank in the 4th quarter worth approximately $3,105,000. Hsbc Holdings PLC lifted its holdings in shares of Preferred Bank by 24.3% in the 4th quarter. Hsbc Holdings PLC now owns 144,588 shares of the bank's stock worth $13,957,000 after acquiring an additional 28,268 shares during the last quarter. Finally, Virtu Financial LLC purchased a new position in shares of Preferred Bank during the 4th quarter worth approximately $1,166,000. Hedge funds and other institutional investors own 72.77% of the company's stock.

Preferred Bank Company Profile

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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