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.
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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.
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