Prosperity Bancshares (NYSE:PB) Shares Gap Down – Time to Sell?

Prosperity Bancshares, Inc. (NYSE:PB) shares gapped down prior to trading on Wednesday . The stock had previously closed at $72.90, but opened at $67.80. Prosperity Bancshares shares last traded at $66.2710, with a volume of 1,558,347 shares.

Prosperity Bancshares News Summary

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

• Positive Sentiment: Q4 results beat estimates on higher net interest income (EPS slightly above consensus), which supports the bank’s earnings outlook and underpins value-focused investor interest. Zacks: PB Q4 Earnings
• Positive Sentiment: Hovde Group raised its price target to $77 and maintains an outperform view, signaling institutional confidence in medium-term upside and supporting buy-side interest. Finviz / Hovde note
• Neutral Sentiment: DA Davidson reiterated a “Neutral” rating with a $76 price target (roughly mid-teens upside from recent levels), which is a watch-and-wait signal that could cap near-term upside while suggesting fair value at current prices. AmericanBankingNews: DA Davidson
• Neutral Sentiment: Analyst coverage roundup and value-stock commentary (e.g., Benzinga, Zacks pieces) highlight PB’s attractive valuation metrics (low P/E, solid dividend history) — supportive for long-term investors but not an immediate catalyst. Benzinga: Analyst Insights
• Negative Sentiment: Announcement of the $2.0B stock-and-cash deal to acquire Stellar Bancorp triggered an initial share drop as investors digest dilution, integration risk and deal execution concerns. The transaction is a primary driver of recent volatility. TipRanks: Stellar merger
• Negative Sentiment: A law firm (Kahn Swick & Foti) has launched an investor probe into the adequacy of the Stellar sale process and price, adding legal/transactional risk and potential reputational/headline volatility. BusinessWire: Investor Alert
• Negative Sentiment: Insider selling by a director (small blocks disclosed via SEC filings) can be perceived negatively by some investors even though sizes are modest relative to holdings; it may add short-term selling pressure. SEC filing: insider sales

Wall Street Analysts Forecast Growth

Several research firms have recently commented on PB. Barclays set a $75.00 price objective on Prosperity Bancshares in a research note on Thursday. Stephens upped their price target on Prosperity Bancshares from $77.00 to $81.00 and gave the stock an “overweight” rating in a research report on Thursday, October 30th. Royal Bank Of Canada decreased their price objective on Prosperity Bancshares from $78.00 to $72.00 and set a “sector perform” rating on the stock in a research note on Friday, October 10th. Hovde Group lifted their price objective on Prosperity Bancshares from $75.00 to $77.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Prosperity Bancshares in a report on Wednesday, October 8th. Seven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, Prosperity Bancshares currently has a consensus rating of “Moderate Buy” and a consensus price target of $79.31.

Prosperity Bancshares Trading Up 0.8%

The business’s 50 day simple moving average is $70.91 and its 200 day simple moving average is $68.31. The firm has a market capitalization of $6.55 billion, a PE ratio of 12.04, a PEG ratio of 0.88 and a beta of 0.68.

Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings data on Wednesday, January 28th. The bank reported $1.46 EPS for the quarter, topping the consensus estimate of $1.45 by $0.01. The company had revenue of $317.73 million during the quarter, compared to analyst estimates of $319.30 million. Prosperity Bancshares had a net margin of 31.22% and a return on equity of 7.11%. During the same period in the previous year, the firm earned $1.37 earnings per share. Prosperity Bancshares’s quarterly revenue was down 5.9% compared to the same quarter last year. Analysts forecast that Prosperity Bancshares, Inc. will post 5.83 earnings per share for the current year.

Prosperity Bancshares Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 3.5%. The ex-dividend date is Friday, March 13th. Prosperity Bancshares’s dividend payout ratio is presently 42.78%.

Insider Activity at Prosperity Bancshares

In other news, Director Harrison Stafford II sold 800 shares of Prosperity Bancshares stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $70.76, for a total value of $56,608.00. Following the transaction, the director owned 107,937 shares of the company’s stock, valued at $7,637,622.12. The trade was a 0.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ned S. Holmes sold 600 shares of the company’s stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $66.84, for a total value of $40,104.00. Following the transaction, the director directly owned 43,300 shares in the company, valued at approximately $2,894,172. The trade was a 1.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 16,150 shares of company stock valued at $1,129,356 over the last ninety days. 4.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in PB. Vanguard Group Inc. boosted its holdings in Prosperity Bancshares by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 10,256,927 shares of the bank’s stock worth $708,856,000 after buying an additional 140,035 shares during the last quarter. State Street Corp boosted its stake in shares of Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock worth $373,231,000 after acquiring an additional 343,062 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Prosperity Bancshares by 0.6% during the third quarter. Dimensional Fund Advisors LP now owns 4,784,022 shares of the bank’s stock worth $317,416,000 after purchasing an additional 28,994 shares in the last quarter. AQR Capital Management LLC raised its stake in Prosperity Bancshares by 43.6% in the 3rd quarter. AQR Capital Management LLC now owns 3,421,408 shares of the bank’s stock valued at $226,531,000 after purchasing an additional 1,038,246 shares during the last quarter. Finally, American Century Companies Inc. grew its holdings in shares of Prosperity Bancshares by 48.7% during the third quarter. American Century Companies Inc. now owns 2,122,031 shares of the bank’s stock worth $140,797,000 after buying an additional 695,114 shares in the last quarter. Hedge funds and other institutional investors own 80.69% of the company’s stock.

Prosperity Bancshares Company Profile

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.