Prosperity Bancshares (NYSE:PB) Upgraded by Wall Street Zen to Hold Rating

Wall Street Zen upgraded shares of Prosperity Bancshares (NYSE:PB) from a sell rating to a hold rating in a research report report published on Saturday.

A number of other research firms have also recently commented on PB. Piper Sandler increased their target price on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the company a “neutral” rating in a research report on Thursday. Benchmark began coverage on Prosperity Bancshares in a research note on Wednesday, June 24th. They set a “hold” rating on the stock. Cantor Fitzgerald reiterated an “overweight” rating and issued a $80.00 price target on shares of Prosperity Bancshares in a research note on Tuesday, June 23rd. Weiss Ratings raised Prosperity Bancshares from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday. Finally, Morgan Stanley restated an “equal weight” rating and set a $80.00 price target (down from $85.00) on shares of Prosperity Bancshares in a research note on Monday, July 6th. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Prosperity Bancshares presently has a consensus rating of “Hold” and an average target price of $78.36.

Prosperity Bancshares Stock Performance

PB stock opened at $74.79 on Friday. The firm has a market cap of $7.54 billion, a price-to-earnings ratio of 12.96, a PEG ratio of 1.18 and a beta of 0.63. The firm has a 50-day simple moving average of $71.65 and a two-hundred day simple moving average of $70.28. Prosperity Bancshares has a one year low of $61.06 and a one year high of $77.20. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.76 and a current ratio of 0.75.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.50 by $0.12. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The business had revenue of $391.25 million for the quarter, compared to analysts’ expectations of $380.73 million. During the same period last year, the business earned $1.42 EPS. The company’s revenue was up 25.9% compared to the same quarter last year. On average, equities analysts forecast that Prosperity Bancshares will post 6.37 EPS for the current fiscal year.

Prosperity Bancshares Announces Dividend

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

Insider Activity

In related news, Director Ned S. Holmes sold 600 shares of the firm’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $70.24, for a total value of $42,144.00. Following the completion of the transaction, the director owned 40,700 shares in the company, valued at $2,858,768. This trade represents a 1.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Over the last 90 days, insiders sold 12,100 shares of company stock valued at $854,426. 3.96% of the stock is owned by corporate insiders.

Institutional Trading of Prosperity Bancshares

Several large investors have recently added to or reduced their stakes in the company. Sepio Capital LP increased its holdings in shares of Prosperity Bancshares by 2.4% in the fourth quarter. Sepio Capital LP now owns 5,701 shares of the bank’s stock valued at $394,000 after purchasing an additional 133 shares during the period. Commonwealth Equity Services LLC lifted its holdings in shares of Prosperity Bancshares by 1.0% during the fourth quarter. Commonwealth Equity Services LLC now owns 14,324 shares of the bank’s stock worth $990,000 after purchasing an additional 145 shares during the period. Osaic Holdings Inc. boosted its position in Prosperity Bancshares by 34.9% in 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. Earned Wealth Advisors LLC boosted its position in Prosperity Bancshares by 6.2% in the first quarter. Earned Wealth Advisors LLC now owns 3,639 shares of the bank’s stock valued at $244,000 after buying an additional 213 shares during the last quarter. Finally, Public Employees Retirement System of Ohio increased its holdings in Prosperity Bancshares by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 39,655 shares of the bank’s stock worth $2,631,000 after buying an additional 228 shares during the period. Hedge funds and other institutional investors own 80.69% of the company’s stock.

Key Prosperity Bancshares News

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.

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.