Preferred Bank Price Target Increased to $94.00 by Stephens

On October 26, 2024, Preferred Bank (NASDAQ:PFBC) saw its price target raised by Stephens from $90.00 to $94.00, as indicated in a recent research report. This adjustment comes with an overweight rating on the bank's stock, suggesting positive outlook and performance potential.

Additionally, another financial firm, Piper Sandler, has raised their price target for Preferred Bank shares from $88.00 to $105.00, also assigning an overweight rating. This report was released on July 29 and reflects a growing confidence in the bank's financial health and future profits.

Stock Performance of Preferred Bank

On the same day that the new target was announced, shares of Preferred Bank opened at $82.04. The bank's market capitalization stands at approximately $1.18 billion, with a price-to-earnings (P/E) ratio of 8.22 and a beta of 0.95. Preferred Bank's stock has been showing significant movement, with a fifty-day moving average of $80.75 and a two-hundred-day moving average of $78.38. In the past year, its stock price has fluctuated between a low of $58.52 and a high of $91.67. Financial metrics such as a debt-to-equity ratio of 0.20 and liquidity ratios like a quick ratio of 1.07 and current ratio of 1.08 underline its robustness.

In its recent earnings report issued on October 21, Preferred Bank announced earnings per share (EPS) of $2.46, surpassing analysts' expectations of $2.39 by $0.07. Furthermore, the bank reported revenues of $132.88 million, significantly exceeding the consensus estimate of $68.80 million. Their net margin was a notable 26.20%, while return on equity stood at 19.01%. Comparing this quarter to the same period last year, when EPS was $2.71, shows a slight decline, but forecasts predict the bank will reach an EPS of 9.54 for the fiscal year.

Dividend Announcement by Preferred Bank

In addition to the positive earnings report, Preferred Bank declared a quarterly dividend recently. The dividend, amounting to $0.70, was paid out on October 21 to shareholders who were on record as of October 7. This annualizes to a dividend total of $2.80, providing a dividend yield of 3.41%. The payout ratio for this dividend is set at 28.06%, reflecting a balanced approach to returning capital to shareholders.

Hedge Fund Activity with Preferred Bank

There has been notable activity among hedge funds in relation to Preferred Bank. LSV Asset Management increased its stake by 121% in the second quarter, acquiring an additional 93,815 shares and elevating their total holdings to 171,330 shares, valued roughly at $12.93 million. Kennedy Capital Management made a new investment in the first quarter worth about $3.45 million. AQR Capital Management also raised its position by 24.7% in the second quarter, bringing their total shares to 77,745, valued at approximately $5.87 million. Vanguard Group increased its stake by 1.3% in the first quarter, totaling 868,073 shares valued at around $66.64 million. Hedge funds and other institutional investors currently hold around 72.77% of Preferred Bank's stock, indicating strong institutional support.

About Preferred Bank

Preferred Bank provides a range of commercial banking products and services aimed at small to medium-sized businesses, their owners, entrepreneurs, real estate developers, investors, professionals, and high-net-worth individuals. Its services include checking, savings, and money market deposit accounts, fixed-rate and fixed-maturity certificates of deposit, and individual retirement accounts.

Banking, Stocks, Earnings