Preferred Bank Announces Dividend Hike as Shares Approach Highs
19.12.2025 - 10:45:04Preferred Bank of Los Angeles US7403674044
Preferred Bank of Los Angeles has declared a significant increase in its shareholder payout, a move that has propelled its stock toward recent resistance levels. The board approved a raise in the annual cash dividend to $3.20 per share, marking a 6.7% increase from the previous distribution.
This decision follows a series of strong financial results. For the third quarter of 2025, the bank reported earnings per share of $2.84, surpassing analyst expectations of $2.57. The upcoming dividend will be paid on January 20, 2026, to shareholders of record as of January 6, 2026, with the ex-dividend date also set for January 6. The payout ratio stands at approximately 30.5%. This increase extends the bank's consistent track record, representing twelve consecutive years of dividend payments.
Share Performance and Valuation Metrics
The bank's equity is demonstrating notable upward momentum, closing in on its 52-week high of $99.78. Year-to-date, the share price has advanced roughly 8.9%, outperforming several regional peers. The stock is trading comfortably above its key moving averages, specifically the 50-day average at $91.77 and the 200-day average at $90.71. Profitability metrics have also strengthened, with net margins expanding to 3.92% in the last quarter.
Should investors sell immediately? Or is it worth buying Preferred Bank of Los Angeles?
Analyst firms have updated their assessments in response to these developments:
* Piper Sandler raised its price target to $119.00 while maintaining an "Overweight" rating.
* DA Davidson adjusted its target to $104.00, reiterating a "Neutral" stance.
The bank's fundamental valuation ratios remain robust, reflecting its financial health:
* Price-to-Earnings (P/E) Ratio: 10.17
* Efficiency Ratio: 28.7%
* Debt-to-Equity Ratio: 0.47
The notably low efficiency ratio highlights disciplined cost management. The consolidated analyst view remains "Moderate Buy," supported by strong credit quality and a declining level of non-performing loans.
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