Prosperity Bancshares (NYSE:PB) Price Target Raised to $78.00

Prosperity Bancshares (NYSE:PB) had its price objective raised by stock analysts at Citigroup from $77.00 to $78.00 in a research report issued on Thursday, Benzinga reports. The brokerage presently has a “neutral” rating on the bank’s stock. Citigroup‘s price objective would suggest a potential upside of 7.53% from the stock’s current price.

Other analysts have also recently issued reports about the company. Royal Bank Of Canada cut their price objective on Prosperity Bancshares from $80.00 to $77.00 and set a “sector perform” rating for the company in a research report on Friday, October 9th. Raymond James Financial upgraded Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $78.00 price target on the stock in a research note on Tuesday, October 6th. Cantor Fitzgerald reduced their price objective on shares of Prosperity Bancshares from $85.00 to $78.00 and set an “overweight” rating for the company in a research report on Wednesday, October 14th. Piper Sandler cut their target price on shares of Prosperity Bancshares from $80.00 to $78.00 and set a “neutral” rating for the company in a research note on Thursday. Finally, Morgan Stanley lifted their target price on shares of Prosperity Bancshares from $80.00 to $81.00 and gave the stock an “underweight” rating in a report on Monday, September 28th. Seven research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $78.18.

Prosperity Bancshares Stock Performance

NYSE PB traded up $1.42 on Thursday, hitting $72.54. 673,561 shares of the stock were exchanged, compared to its average volume of 1,102,884. 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 business’s fifty day moving average is $69.55 and its 200 day moving average is $70.35. Prosperity Bancshares has a 52 week low of $63.20 and a 52 week high of $77.20. The company has a market capitalization of $7.32 billion, a PE ratio of 12.59, a P/E/G ratio of 0.77 and a beta of 0.66.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings data on Wednesday, October 28th. The bank reported $1.67 earnings per share for the quarter, topping the consensus estimate of $1.35 by $0.32. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The company had revenue of $495.70 million for the quarter, compared to analyst estimates of $491.49 million. During the same period in the previous year, the business earned $1.45 EPS. Prosperity Bancshares’s revenue for the quarter was up 56.0% compared to the same quarter last year. Research analysts anticipate that Prosperity Bancshares will post 6.46 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Ned Holmes sold 500 shares of the firm’s stock in a transaction that occurred on Wednesday, October 28th. The shares were sold at an average price of $70.05, for a total transaction of $35,025.00. Following the transaction, the director directly owned 65,615 shares of the company’s stock, valued at approximately $4,596,330.75. This trade represents a 0.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last ninety days, insiders have sold 13,800 shares of company stock valued at $973,234. 3.96% of the stock is owned by insiders.

Institutional Investors Weigh In On Prosperity Bancshares

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of Prosperity Bancshares in the second quarter worth $746,776,000. Dimensional Fund Advisors LP lifted its position in Prosperity Bancshares by 4.3% during the first quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank’s stock worth $331,142,000 after purchasing an additional 205,291 shares during the period. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in Prosperity Bancshares during the second quarter worth about $350,099,000. North Reef Capital Management LP grew its stake in Prosperity Bancshares by 149.0% during the first quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank’s stock worth $74,427,000 after buying an additional 662,877 shares in the last quarter. Finally, Algebris UK Ltd. bought a new position in Prosperity Bancshares in the 2nd quarter valued at about $59,465,000. 80.69% of the stock is currently owned by institutional investors.

Prosperity Bancshares News Roundup

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

• Positive Sentiment: StoneX upgraded PB to Buy, signaling increased confidence in the bank’s earnings outlook and valuation. StoneX upgrade article
• Positive Sentiment: Third-quarter adjusted earnings beat expectations. Prosperity reported adjusted diluted EPS of $1.67, above consensus estimates, while revenue reached approximately $495.7 million, up 56% year over year and slightly ahead of estimates. GAAP diluted EPS was $1.18 after merger-related and other nonrecurring expenses. Prosperity third-quarter earnings release
• Positive Sentiment: The Stellar Bancorp merger is driving substantial scale. Loans increased 28.1% and deposits rose 26.5% during the quarter, while total assets reached $54.1 billion. Net interest margin improved to 3.73%, and nonperforming assets remained low at 0.41% of average interest-earning assets. Q3 earnings call highlights
• Positive Sentiment: Shareholder returns improved. The board raised the quarterly dividend by $0.04 to $0.64 per share, marking the 23rd consecutive annual increase. Prosperity also repurchased approximately 457,000 shares during the quarter. Dividend and buyback details
• Neutral Sentiment: Piper Sandler lowered its price target from $80 to $78 and retained a Neutral rating. The revised target still implies potential upside, but the reduction suggests more limited near-term valuation support than previously expected. Piper Sandler ratings
• Negative Sentiment: Director Ned Holmes reported two sales totaling 1,100 shares. The transactions were small relative to his remaining holdings, but repeated insider selling may weigh modestly on sentiment.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc is a regional bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides banking and financial services to individuals, businesses, and public entities.

Prosperity Bank offers deposit products, commercial and consumer lending, mortgage and real estate lending, treasury management, online and mobile banking, and other traditional banking services. Its lending activities include financing for commercial businesses, agriculture, residential and commercial real estate, and personal needs.

Founded in 1983, Prosperity Bancshares has expanded primarily through organic growth and the acquisition of community banks.