Preferred Bank (PFBC) Stock Price, News & Analysis

Company Overview

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. It also provides real estate mortgage loans that are secured by retail, industrial, office, special purpose, and residential single and multi-family properties; real estate construction loans; commercial loans comprising lines of credit for working capital, term loans for capital expenditures, and commercial and stand-by letters of credit; and small business administration loans. In addition, the company offers trade finance services, including commercial and export letters of credit, import lines of credit, documentary collections, international wire transfers, acceptances/trust receipt financing products, export financing, and bills purchase programs. Further, it provides cash management services; and internet, mobile, and tablet banking services. The company operates through full-service branch offices in the California counties of Los Angeles, Orange and San Francisco; Flushing, New York; Houston suburb of Sugar Land, Texas; and a satellite office in Manhattan, New York. The company was incorporated in 1991 and is headquartered in Los Angeles, California.

Key Stats

• Today's Range: $85.93 to $86.93
• 50-Day Range: $81.63 to $96.73
• 52-Week Range: $66.88 to $99.78
• Volume: 21,046 shs
• Average Volume: 81,387 shs
• Market Capitalization: $1.25 billion
• P/E Ratio: 8.69
• Dividend Yield: 3.23%
• Price Target: $99.50
• Consensus Rating: Moderate Buy

Preferred Bank Stock Analysis - MarketRank™

Preferred Bank scored higher than 27% of companies evaluated by MarketBeat, and ranked 830th out of 937 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Preferred Bank has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 1 buy rating, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

Preferred Bank has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -9.54%

Earnings Growth

Earnings for Preferred Bank are expected to decrease by -9.54% in the coming year, from $9.75 to $8.82 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Preferred Bank is 8.69, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 113.12.

Price to Earnings Ratio vs. Sector

The P/E ratio of Preferred Bank is 8.69, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 25.10.

Price to Book Value per Share Ratio

Preferred Bank has a P/B Ratio of 1.80. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 0.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

7.42% of the float of Preferred Bank has been sold short.

Short Interest Ratio / Days to Cover

Preferred Bank has a short interest ratio ("days to cover") of 13.2, which indicates bearish sentiment.

Change versus previous month

Short interest in Preferred Bank has recently increased by 0.62%, indicating that investor sentiment is decreasing.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Preferred Bank pays a meaningful dividend of 3.26%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Preferred Bank does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Preferred Bank is 28.06%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Preferred Bank will have a dividend payout ratio of 31.75% next year. This indicates that Preferred Bank will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

7.42% of the float of Preferred Bank has been sold short.

Short Interest Ratio / Days to Cover

Preferred Bank has a short interest ratio ("days to cover") of 13.2, which indicates bearish sentiment.

Change versus previous month

Short interest in Preferred Bank has recently increased by 0.62%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 1.0 / 5
• News Sentiment: -0.25

News Sentiment

Preferred Bank has a news sentiment score of -0.25. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.67 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 7 news articles for Preferred Bank this week, compared to 3 articles on an average week.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Preferred Bank insiders have not sold or bought any company stock.

Percentage Held by Institutions

72.77% of the stock of Preferred Bank is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

PFBC Stock Analysis - Frequently Asked Questions

How have PFBC shares performed this year?

Preferred Bank's stock was trading at $73.05 at the beginning of the year. Since then, PFBC stock has increased by 18.7% and is now trading at $86.74.
View the best growth stocks for 2024 here.

How were Preferred Bank's earnings last quarter?

Preferred Bank (NASDAQ:PFBC) announced its quarterly earnings results on Monday, October, 21st. The bank reported $2.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.39 by $0.07. The bank had revenue of $132.88 million for the quarter, compared to analyst estimates of $68.80 million. Preferred Bank had a net margin of 26.20% and a trailing twelve-month return on equity of 19.01%.

Who are Preferred Bank's major shareholders?

Top institutional shareholders of Preferred Bank include State Street Corp (4.11%), Charles Schwab Investment Management Inc. (2.88%), Geode Capital Management LLC (2.44%) and Phocas Financial Corp. (0.94%).

How do I buy shares of Preferred Bank?

Shares of PFBC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Preferred Bank own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Preferred Bank investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Netflix (NFLX), Broadcom (AVGO), JPMorgan Chase & Co. (JPM) and Exxon Mobil (XOM).

Company Calendar

• Ex-Dividend for 10/21 Dividend: 10/07/2024
• Last Earnings: 10/21/2024
• Dividend Payable: 10/21/2024
• Today: 12/24/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: State commercial banks
• Sub-Industry: Regional Banks
• Current Symbol: NASDAQ:PFBC
• CUSIP: 74036740
• CIK: 1492165
• Web: www.preferredbank.com
• Phone: (213) 891-1188
• Fax: 213-622-5161
• Employees: 300
• Year Founded: 1991

Price Target and Rating

• Average Stock Price Target: $99.50
• High Stock Price Target: $105.00
• Low Stock Price Target: $94.00
• Potential Upside/Downside: +14.7%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 2 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $9.98
• Trailing P/E Ratio: 8.69
• Forward P/E Ratio: 8.90
• P/E Growth: N/A
• Net Income: $150.04 million
• Net Margins: 26.20%
• Pretax Margin: 36.83%
• Return on Equity: 19.01%
• Return on Assets: 2.01%

Debt

• Debt-to-Equity Ratio: 0.20
• Current Ratio: 1.08
• Quick Ratio: 1.08

Sales & Book Value

• Annual Sales: $281.54 million
• Price / Sales: 4.45
• Cash Flow: $10.34 per share
• Price / Cash Flow: 8.39
• Book Value: $48.17 per share
• Price / Book: 1.80

Miscellaneous

• Outstanding Shares: 14,430,000
• Free Float: N/A
• Market Cap: $1.25 billion
• Optionable: Optionable
• Beta: 0.96