Zacks Investment Research upgraded shares of Prosperity Bancshares, Inc. (NYSE:PB) from a hold rating to a buy rating in a research note released on Tuesday morning. They currently have $79.00 price target on the stock.
According to Zacks, “Prosperity Bancshares shares have outperformed the Zacks categorized Banks-Southwest industry over the last six months. Moreover, the company’s organic growth story remains healthy. Given the strong balance sheet position, it is well positioned to expand further through acquisitions. Further, it has an effective capital deployment strategy in place, which is expected to enhance shareholder value. Nevertheless, mounting expenses, concentrated loan portfolio and stringent regulations will likely weigh on the company’s near term profitability.”
Other research analysts have also issued reports about the company. Deutsche Bank AG raised their target price on Prosperity Bancshares from $54.00 to $59.00 and gave the stock a hold rating in a research report on Tuesday, October 11th. FBR & Co lowered Prosperity Bancshares from an outperform rating to a market perform rating in a research report on Tuesday, December 20th. Hovde Group lowered Prosperity Bancshares from an outperform rating to a market perform rating in a research report on Monday, November 14th. DA Davidson lowered Prosperity Bancshares from a buy rating to a neutral rating in a research report on Thursday, October 27th. Finally, SunTrust Banks, Inc. started coverage on Prosperity Bancshares in a research report on Thursday, October 6th. They set a neutral rating for the company. Four equities research analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $55.00.
Shares of Prosperity Bancshares (NYSE:PB) traded up 1.20% during mid-day trading on Tuesday, hitting $72.66. The stock had a trading volume of 262,385 shares. Prosperity Bancshares has a 1-year low of $33.57 and a 1-year high of $74.74. The company has a market cap of $5.05 billion, a P/E ratio of 18.39 and a beta of 1.28. The firm’s 50 day moving average price is $70.03 and its 200 day moving average price is $58.06.
Prosperity Bancshares (NYSE:PB) last announced its quarterly earnings results on Wednesday, October 26th. The company reported $0.99 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.99. Prosperity Bancshares had a return on equity of 7.83% and a net margin of 34.83%. The company earned $183.80 million during the quarter, compared to analysts’ expectations of $189.25 million. During the same period in the prior year, the company earned $1.01 EPS. Prosperity Bancshares’s revenue was down 2.2% compared to the same quarter last year. Analysts predict that Prosperity Bancshares will post $3.93 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, January 3rd. Investors of record on Friday, December 16th were paid a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 1.89%. This is a positive change from Prosperity Bancshares’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Wednesday, December 14th. Prosperity Bancshares’s payout ratio is currently 34.34%.
In related news, Director Harrison Stafford II sold 2,000 shares of Prosperity Bancshares stock in a transaction that occurred on Tuesday, November 8th. The shares were sold at an average price of $55.00, for a total value of $110,000.00. Following the completion of the transaction, the director now directly owns 103,900 shares in the company, valued at approximately $5,714,500. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, President Edward Z. Safady sold 5,000 shares of Prosperity Bancshares stock in a transaction that occurred on Wednesday, November 23rd. The shares were sold at an average price of $66.15, for a total transaction of $330,750.00. Following the completion of the transaction, the president now owns 5,329 shares of the company’s stock, valued at $352,513.35. The disclosure for this sale can be found here. 4.90% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank raised its position in Prosperity Bancshares by 12.7% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,120 shares of the company’s stock worth $116,000 after buying an additional 239 shares during the period. Bronfman E.L. Rothschild L.P. raised its position in Prosperity Bancshares by 13.2% in the third quarter. Bronfman E.L. Rothschild L.P. now owns 2,756 shares of the company’s stock worth $151,000 after buying an additional 322 shares during the period. Glenmede Trust Co. NA raised its position in Prosperity Bancshares by 5.1% in the second quarter. Glenmede Trust Co. NA now owns 2,986 shares of the company’s stock worth $151,000 after buying an additional 145 shares during the period. LS Investment Advisors LLC raised its position in Prosperity Bancshares by 74.6% in the second quarter. LS Investment Advisors LLC now owns 3,926 shares of the company’s stock worth $200,000 after buying an additional 1,677 shares during the period. Finally, World Asset Management Inc purchased a new position in Prosperity Bancshares during the third quarter worth approximately $247,000. Institutional investors and hedge funds own 74.16% of the company’s stock.
Prosperity Bancshares Company Profile
Prosperity Bancshares, Inc is a financial holding company. The Company operates through its bank subsidiary, Prosperity Bank (the Bank). The Bank provides a range of financial products and services to small and medium-sized businesses and consumers. The Company’s additional products and services include trust services, brokerage, mortgage lending, credit card and independent sales organization (ISO) sponsorship operations.
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