Preferred Bank (NASDAQ:PFBC) to Repurchase $125.00 million in Stock

Preferred Bank (NASDAQ:PFBC) declared that its board has initiated a stock repurchase plan on Thursday, May 22nd, RTT News reports. The company plans to repurchase $125.00 million in outstanding shares. This repurchase authorization authorizes the bank to buy up to 10.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Piper Sandler dropped their price target on Preferred Bank from $108.00 to $96.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 29th. Stephens reiterated an “equal weight” rating and set a $91.00 target price on shares of Preferred Bank in a research report on Tuesday, April 29th. Finally, DA Davidson decreased their target price on Preferred Bank from $95.00 to $90.00 and set a “neutral” rating on the stock in a research report on Monday, April 28th.

Preferred Bank Price Performance

PFBC opened at $83.08 on Friday. The stock’s 50-day moving average price is $81.93 and its 200 day moving average price is $86.70. Preferred Bank has a 12-month low of $71.43 and a 12-month high of $99.78. 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 $1.20 billion, a price-to-earnings ratio of 8.63 and a beta of 0.69.

Preferred Bank (NASDAQ:PFBC) last posted its quarterly earnings results on Friday, April 25th. The bank reported $2.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.33 by ($0.10). The company had revenue of $65.96 million during the quarter, compared to analyst estimates of $70.78 million. Preferred Bank had a net margin of 25.00% and a return on equity of 17.80%. During the same period in the prior year, the business earned $2.44 EPS. As a group, sell-side analysts expect that Preferred Bank will post 9.81 earnings per share for the current year.

Preferred Bank Dividend Announcement

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 3.61%. The ex-dividend date was Monday, April 7th. Preferred Bank’s dividend payout ratio is currently 31.85%.

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.