Preferred Bank (PFBC) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Preferred Bank (NASDAQ:PFBC) from a buy rating to a hold rating in a report published on Thursday morning.

According to Zacks, “Preferred Bank is one of the largest independent commercial banks in California focusing on the Chinese-American market. The bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Company conducts its banking business from its main office in Los Angeles, California, and through ten full-service branch banking offices in Alhambra, Century City, Chino Hills, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Santa Monica and Valencia, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid- sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Preferred Bank continues to benefit from the significant migration to Southern California of “

PFBC has been the topic of several other reports. BidaskClub upgraded Preferred Bank from a strong sell rating to a sell rating in a research note on Saturday, October 6th. B. Riley set a $76.00 price objective on Preferred Bank and gave the company a buy rating in a research note on Tuesday, October 30th. Raymond James lowered their price objective on Preferred Bank from $77.00 to $72.00 and set a strong-buy rating on the stock in a research note on Friday, October 19th. ValuEngine lowered Preferred Bank from a hold rating to a sell rating in a research note on Wednesday, September 19th. Finally, Stephens lowered Preferred Bank from an overweight rating to an equal weight rating in a research note on Friday, July 6th. Two research analysts have rated the stock with a sell rating, two have given a hold rating, two have given a buy rating and two have issued a strong buy rating to the company’s stock. The company has a consensus rating of Buy and a consensus price target of $72.00.

Preferred Bank stock opened at $52.82 on Thursday. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.28. The company has a market capitalization of $696.59 million, a price-to-earnings ratio of 15.44, a PEG ratio of 1.13 and a beta of 1.01. Preferred Bank has a 12 month low of $49.45 and a 12 month high of $69.48.

Preferred Bank (NASDAQ:PFBC) last posted its quarterly earnings results on Wednesday, October 17th. The bank reported $1.20 EPS for the quarter, beating the consensus estimate of $1.18 by $0.02. The firm had revenue of $40.91 million during the quarter, compared to analysts’ expectations of $41.19 million. Preferred Bank had a return on equity of 18.39% and a net margin of 31.74%. As a group, analysts expect that Preferred Bank will post 4.66 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, October 19th. Shareholders of record on Friday, October 5th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.89%. The ex-dividend date of this dividend was Thursday, October 4th. Preferred Bank’s dividend payout ratio is 29.24%.

Several hedge funds and other institutional investors have recently made changes to their positions in PFBC. UBS Group AG raised its position in shares of Preferred Bank by 653.1% in the first quarter. UBS Group AG now owns 2,651 shares of the bank’s stock valued at $170,000 after buying an additional 2,299 shares in the last quarter. GAM Holding AG bought a new stake in shares of Preferred Bank during the second quarter worth $241,000. Capital Fund Management S.A. bought a new stake in shares of Preferred Bank during the second quarter worth $246,000. First Hawaiian Bank bought a new stake in shares of Preferred Bank during the third quarter worth $257,000. Finally, State of Alaska Department of Revenue bought a new stake in shares of Preferred Bank during the third quarter worth $266,000. Institutional investors own 86.55% of the company’s stock.

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 in the United States. The company's deposit products include checking, savings, negotiable order of withdrawal, and money market deposit accounts; fixed-rate and fixed maturity retail, and non-retail certificates of deposit; and individual retirement accounts.

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