Prosperity Bancshares, Inc. (NYSE:PB) Receives Average Recommendation of “Hold” from Brokerages

Shares of Prosperity Bancshares, Inc. (NYSE:PB) have earned a consensus rating of “Hold” from the fourteen ratings firms that are presently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and five have issued a buy recommendation on the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $78.3636.

PB has been the topic of a number of recent analyst reports. Cantor Fitzgerald restated an “overweight” rating and issued a $80.00 price target on shares of Prosperity Bancshares in a research report on Tuesday, June 23rd. TD Cowen lifted their target price on shares of Prosperity Bancshares from $82.00 to $84.00 and gave the stock a “buy” rating in a research note on Friday. Morgan Stanley restated an “equal weight” rating and issued a $80.00 target price (down from $85.00) on shares of Prosperity Bancshares in a report on Monday, July 6th. Piper Sandler upped their price target on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the company a “neutral” rating in a research report on Thursday. Finally, Citigroup increased their price target on Prosperity Bancshares from $75.00 to $79.00 and gave the stock a “neutral” rating in a report on Friday.

Prosperity Bancshares Price Performance

Shares of PB opened at $74.79 on Wednesday. The business has a 50-day moving average of $71.65 and a 200-day moving average of $70.28. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.75. The company has a market capitalization of $7.54 billion, a price-to-earnings ratio of 12.96, a price-to-earnings-growth ratio of 1.18 and a beta of 0.63. Prosperity Bancshares has a 1 year low of $61.06 and a 1 year high of $77.20.

Prosperity Bancshares (NYSE:PB) last announced its earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, beating the consensus estimate of $1.50 by $0.12. The business had revenue of $391.25 million for the quarter, compared to analysts’ expectations of $380.73 million. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The firm’s revenue was up 25.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.42 earnings per share. As a group, equities research analysts anticipate that Prosperity Bancshares will post 6.37 earnings per share for the current year.

Prosperity Bancshares Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Tuesday, September 15th. Prosperity Bancshares’s payout ratio is presently 41.59%.

Insider Activity at Prosperity Bancshares

In other news, Director Ned S. Holmes sold 500 shares of Prosperity Bancshares stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $74.25, for a total value of $37,125.00. Following the completion of the sale, the director owned 72,115 shares in the company, valued at $5,354,538.75. The trade was a 0.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Over the last three months, insiders have sold 12,100 shares of company stock worth $854,426. Company insiders own 3.96% of the company’s stock.

Institutional Trading of Prosperity Bancshares

Several large investors have recently made changes to their positions in PB. Danske Bank A S bought a new position in Prosperity Bancshares in the third quarter worth approximately $40,000. SouthState Bank Corp bought a new position in shares of Prosperity Bancshares in the fourth quarter valued at $49,000. Osaic Holdings Inc. grew its holdings in shares of Prosperity Bancshares by 34.9% during the second quarter. Osaic Holdings Inc. now owns 719 shares of the bank’s stock valued at $51,000 after buying an additional 186 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Prosperity Bancshares in the 4th quarter worth about $55,000. Finally, Group One Trading LLC acquired a new position in Prosperity Bancshares during the 4th quarter valued at about $66,000. 80.69% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Prosperity Bancshares

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Strong Q2 earnings and revenue growth: Prosperity Bancshares reported adjusted earnings of $1.62 per share, exceeding the $1.51 consensus estimate, while revenue rose 25.9% year over year to $391.26 million. Results benefited from contributions from the Stellar Bancorp acquisition and the absence of a credit-loss provision. PB’s Q2 Earnings Beat Estimates as Revenues Rise, Stellar Deal Closed
• Positive Sentiment: Merger upside highlighted: Management’s earnings call emphasized the potential benefits of completing the Stellar Bancorp buyout, including increased scale and revenue contributions. Investors may view the integration as a source of additional earnings growth. Prosperity Bancshares Earnings Call Highlights Merger Upside
• Positive Sentiment: Price targets raised: Royal Bank of Canada increased its target from $78 to $80, while Piper Sandler raised its target from $75 to $80. Both targets indicate approximately 7% potential upside from the referenced trading level, although neither firm assigned a bullish rating.
• Neutral Sentiment: Dividend appeal: A recent analysis points to Prosperity Bancshares’ potential as a dividend stock, which could attract income-focused investors, though the article does not identify a new dividend increase or policy change. This is Why Prosperity Bancshares Is a Great Dividend Stock
• Negative Sentiment: Insider selling: Director Ned S. Holmes sold a combined 1,100 shares worth roughly $81,700. The sales reduced his holdings by less than 2.2% overall, making the signal relatively minor but modestly negative.

About Prosperity Bancshares

Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.

Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.