Geode Capital Management LLC Increases Stake in Preferred Bank

Geode Capital Management LLC has recently increased its stake in Preferred Bank (NASDAQ:PFBC) by 3.6% during the third quarter, based on the latest Form 13F filing submitted to the SEC. After acquiring an additional 12,283 shares, the institutional investor now holds a total of 352,597 shares in the bank. This investment is valued at approximately $28.3 million at the end of the reported period.

In addition, other hedge funds have also adjusted their holdings in Preferred Bank. For instance, Dimensional Fund Advisors LP raised its investment in Preferred Bank by 0.7% during the second quarter, bringing its total to 680,337 shares valued at $51.36 million after adding 4,539 shares. Similarly, State Street Corp increased its stake by 0.4% in the third quarter, owning 592,566 shares worth $47.55 million after buying 2,339 shares.

Moreover, Charles Schwab Investment Management Inc. enhanced its holdings in the bank by 1.7% in the same quarter, now owning 415,722 shares valued at about $33.36 million after acquiring 7,086 shares. LSV Asset Management made a significant move by growing its stake by 121% in the second quarter, resulting in ownership of 171,330 shares worth $12.93 million following the purchase of 93,815 shares. Lastly, Dana Investment Advisors Inc. increased its position by 7.4% during the second quarter, owning 98,591 shares worth $7.44 million after buying an additional 6,809 shares.

Currently, approximately 72.77% of Preferred Bank’s stock is owned by hedge funds and other institutional investors.

Recent Analyst Ratings

Notably, on December 9th, Stephens changed its rating for Preferred Bank from “overweight” to “equal weight.” This change may influence market perceptions of the bank.

Stock Performance Update

The trading price of Preferred Bank (NASDAQ:PFBC) rose by 0.7% recently, opening at $87.34. The bank boasts a market capitalization of $1.26 billion, with a P/E ratio of 8.75 and a beta of 0.96. The financial ratios include a current ratio of 1.08 and a quick ratio of 1.08, alongside a debt-to-equity ratio of 0.20. Over the past year, the stock has seen a low of $66.88 and a high of $99.78, with a 50-day simple moving average of $90.35 and a 200-day simple moving average of $82.98.

Earnings Report Highlights

On October 21st, Preferred Bank announced its quarterly earnings results, reporting an EPS of $2.46, exceeding the consensus estimate of $2.39 by $0.07. Revenue for the quarter totaled $132.88 million, significantly above analysts' expectations of $68.80 million. The bank's return on equity was reported at 19.01% with a net margin of 26.20%. In contrast, for the same quarter last year, the bank reported an EPS of $2.71. Analysts project Preferred Bank's earnings per share for the current year to be approximately 9.75.

Dividend Announcement

Furthermore, Preferred Bank has announced an increase in its quarterly dividend, now set at $0.75 per share, which reflects an improvement from the previous dividend of $0.70. This dividend will be paid on January 23rd to shareholders of record by January 9th. The annualized dividend now stands at $3.00, resulting in a yield of 3.43%. The bank currently maintains a dividend payout ratio (DPR) of 28.06%.

About Preferred Bank

Preferred Bank specializes in various commercial banking products and services geared towards small and mid-sized businesses, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals. The bank provides services like checking accounts, savings accounts, certificates of deposit, and individual retirement accounts.

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