Preferred Bank said on March 27, 2023 that its board of directors declared a regular
quarterly dividend of $0.55 per share ($2.20 annualized).
Previously, the company paid $0.55 per share.
Shares must be purchased before the ex-div date of April 5, 2023 to qualify for the dividend.
Shareholders of record as of April 7, 2023
will receive the payment on April 21, 2023.
At the current share price of $55.27 / share,
the stock’s dividend yield is 3.98%.
Looking back five years and taking a sample every week, the average dividend yield has been
2.44%,
the lowest has been 1.32%,
and the highest has been 4.23%.
The standard deviation of yields is 0.56 (n=236).
The current dividend yield is
2.76 standard deviations
above
the historical average.
Additionally, the company’s dividend payout ratio is 0.25.
The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0)
means 100% of the company’s income is paid in a dividend.
A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a
healthy situation.
Companies with few growth prospects are expected to pay out most of their income in dividends, which typically
means a payout ratio between 0.5 and 1.0.
Companies with good growth prospects are expected to retain some earnings in order to invest
in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.83%,
demonstrating that it has increased its dividend over time.
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Analyst Price Forecast Suggests 44.87% Upside
As of March 29, 2023,
the average one-year price target for Preferred Bank is $80.07.
The forecasts range from a low of $70.70 to a high of $91.35.
The average price target represents an increase of 44.87% from its latest reported closing price of $55.27.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Preferred Bank
is $289MM, an increase of 19.48%.
The projected annual non-GAAP EPS
is $9.75.
What is the Fund Sentiment?
There are 452 funds or institutions reporting positions in Preferred Bank.
This is an increase
of
27
owner(s) or 6.35% in the last quarter.
Average portfolio weight of all funds dedicated to PFBC is 0.14%,
a decrease
of 1.74%.
Total shares owned by institutions increased
in the last three months by 4.76% to 12,640K shares.
The put/call ratio of PFBC is 3.61, indicating a
bearish
outlook.
What are Large Shareholders Doing?
T. Rowe Price Investment Management
holds 1,043K shares
representing 7.23% ownership of the company.
In it’s prior filing, the firm reported owning 1,044K shares, representing
a decrease
of 0.07%.
The firm
increased
its portfolio allocation in PFBC by 9.80% over the last quarter.
PRSVX – T. Rowe Price Small-Cap Value Fund
holds 722K shares
representing 5.00% ownership of the company.
In it’s prior filing, the firm reported owning 723K shares, representing
a decrease
of 0.19%.
The firm
increased
its portfolio allocation in PFBC by 11.65% over the last quarter.
IJR – iShares Core S&P Small-Cap ETF
holds 616K shares
representing 4.27% ownership of the company.
No change in the last quarter.
Boston Partners
holds 498K shares
representing 3.45% ownership of the company.
In it’s prior filing, the firm reported owning 300K shares, representing
an increase
of 39.66%.
The firm
decreased
its portfolio allocation in PFBC by 99.93% over the last quarter.
Nuveen Asset Management
holds 458K shares
representing 3.18% ownership of the company.
In it’s prior filing, the firm reported owning 514K shares, representing
a decrease
of 12.12%.
The firm
decreased
its portfolio allocation in PFBC by 2.38% over the last quarter.
Preferred Bank Background Information
(This description is provided by the company.)
Preferred Bank (the ‘Bank’) is one of the larger independent commercial banks headquartered in California. 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 Bank conducts its banking business from its main office in Los Angeles, California, and through eleven full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)) and one branch in Flushing, New York. 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. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
