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

Preferred Bank (NASDAQ:PFBC - Get Free Report)'s stock price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $86.02 and traded as high as $89.27. Preferred Bank shares last traded at $87.66, with a volume of 82,437 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on PFBC shares. Stephens reissued an "equal weight" rating and set a $100.00 price target on shares of Preferred Bank in a research report on Thursday, January 30th. Piper Sandler lifted their target price on Preferred Bank from $101.00 to $111.00 and gave the stock an "overweight" rating in a research note on Friday, January 31st. Finally, DA Davidson increased their price target on Preferred Bank from $98.00 to $101.00 and gave the company a "neutral" rating in a research note on Wednesday, January 29th.

Preferred Bank Stock Performance

The stock's 50 day moving average is $87.83 and its 200 day moving average is $86.12. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.19. The firm has a market cap of $1.28 billion, a price-to-earnings ratio of 9.22 and a beta of 0.97.

Preferred Bank (NASDAQ:PFBC - Get Free Report) last posted its earnings results on Monday, January 27th. The bank reported $2.25 EPS for the quarter, missing the consensus estimate of $2.42 by ($0.17). Preferred Bank had a net margin of 25.00% and a return on equity of 17.80%. Analysts anticipate that Preferred Bank will post 9.81 earnings per share for the current year.

Preferred Bank Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, January 23rd. Stockholders of record on Thursday, January 9th were issued a dividend of $0.75 per share. The ex-dividend date was Friday, January 10th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 3.38%. This is an increase from Preferred Bank's previous quarterly dividend of $0.70. Preferred Bank's dividend payout ratio (DPR) is currently 31.15%.

Hedge Funds Weigh In On Preferred Bank

Several institutional investors and hedge funds have recently modified their holdings of the business. Mirae Asset Global Investments Co. Ltd. raised its stake in Preferred Bank by 10.2% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 7,513 shares of the bank's stock worth $598,000 after purchasing an additional 694 shares in the last quarter. Meritage Portfolio Management acquired a new stake in shares of Preferred Bank in the third quarter valued at approximately $366,000. Los Angeles Capital Management LLC raised its position in shares of Preferred Bank by 46.6% in the third quarter. Los Angeles Capital Management LLC now owns 8,183 shares of the bank's stock valued at $657,000 after buying an additional 2,600 shares in the last quarter. Versor Investments LP boosted its stake in shares of Preferred Bank by 28.7% in the third quarter. Versor Investments LP now owns 16,154 shares of the bank's stock valued at $1,296,000 after buying an additional 3,600 shares during the period. Finally, GSA Capital Partners LLP grew its position in Preferred Bank by 62.5% during the third quarter. GSA Capital Partners LLP now owns 31,726 shares of the bank's stock worth $2,546,000 after buying an additional 12,197 shares in the last quarter. 72.77% of the stock is currently owned by institutional investors and hedge funds.

About Preferred Bank

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.