Preferred Bank (NASDAQ:PFBC) Shares Gap Down on Disappointing Earnings

Preferred Bank (NASDAQ:PFBC - Get Free Report)'s stock price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $85.98, but opened at $82.51. Preferred Bank shares last traded at $80.52, with a volume of 12,054 shares.

The bank reported $2.23 earnings per share for the quarter, missing analysts' consensus estimates of $2.33 by ($0.10). Preferred Bank had a net margin of 25.00% and a return on equity of 17.80%. The company had revenue of $65.96 million for the quarter, compared to analyst estimates of $70.78 million. During the same period in the previous year, the firm posted $2.44 earnings per share.

Preferred Bank Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, April 21st. Shareholders of record on Monday, April 7th were given a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a yield of 3.70%. The ex-dividend date was Monday, April 7th. Preferred Bank's dividend payout ratio (DPR) is 31.85%.

Wall Street Analyst Weigh In

PFBC has been the topic of several analyst reports. Stephens reaffirmed an "equal weight" rating and issued a $91.00 target price on shares of Preferred Bank in a report on Tuesday. DA Davidson decreased their price objective on shares of Preferred Bank from $95.00 to $90.00 and set a "neutral" rating on the stock in a research note on Monday. Finally, Piper Sandler dropped their price objective on shares of Preferred Bank from $108.00 to $96.00 and set an "overweight" rating for the company in a report on Tuesday.

Hedge Funds Weigh In On Preferred Bank

A number of institutional investors have recently modified their holdings of PFBC. Illinois Municipal Retirement Fund raised its position in Preferred Bank by 2.1% in the 1st quarter. Illinois Municipal Retirement Fund now owns 6,828 shares of the bank's stock worth $571,000 after purchasing an additional 138 shares during the last quarter. SummerHaven Investment Management LLC raised its position in shares of Preferred Bank by 1.5% during the first quarter. SummerHaven Investment Management LLC now owns 10,412 shares of the bank's stock worth $871,000 after acquiring an additional 157 shares during the last quarter. Jump Financial LLC raised its position in shares of Preferred Bank by 2.1% during the fourth quarter. Jump Financial LLC now owns 9,148 shares of the bank's stock worth $790,000 after acquiring an additional 185 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Preferred Bank by 3.8% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,064 shares of the bank's stock valued at $610,000 after acquiring an additional 257 shares during the period. Finally, KBC Group NV boosted its holdings in Preferred Bank by 46.2% in the fourth quarter. KBC Group NV now owns 914 shares of the bank's stock valued at $79,000 after acquiring an additional 289 shares during the last quarter. 72.77% of the stock is owned by institutional investors.

Preferred Bank Stock Performance

The company has a debt-to-equity ratio of 0.19, a current ratio of 1.08 and a quick ratio of 1.08. The stock has a market capitalization of $1.17 billion, a price-to-earnings ratio of 8.41 and a beta of 0.71. The stock has a 50-day moving average of $82.62 and a 200 day moving average of $86.83.

Preferred Bank Company Profile

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.