Hovde Group Issues Positive Forecast for Prosperity Bancshares (NYSE:PB) Stock Price

Prosperity Bancshares (NYSE:PB) had its price objective increased by equities researchers at Hovde Group from $75.00 to $77.00 in a research note issued on Thursday,Finviz reports. The firm currently has an “outperform” rating on the bank’s stock. Hovde Group’s target price would suggest a potential upside of 14.49% from the stock’s previous close.

Other analysts also recently issued research reports about the company. Raymond James Financial downgraded Prosperity Bancshares from an “outperform” rating to a “market perform” rating in a research note on Wednesday, January 7th. Weiss Ratings reissued a “hold (c)” rating on shares of Prosperity Bancshares in a research note on Wednesday, October 8th. TD Cowen reaffirmed a “buy” rating on shares of Prosperity Bancshares in a research report on Wednesday, January 7th. Royal Bank Of Canada dropped their price target on shares of 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. Finally, Stephens raised their price objective on shares of Prosperity Bancshares from $77.00 to $81.00 and gave the company an “overweight” rating in a research note on Thursday, October 30th. Seven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $79.58.

Prosperity Bancshares Price Performance

NYSE:PB opened at $67.25 on Thursday. The firm’s 50-day moving average price is $70.86 and its 200-day moving average price is $68.31. The company has a market capitalization of $6.39 billion, a PE ratio of 11.99, a P/E/G ratio of 0.95 and a beta of 0.68. Prosperity Bancshares has a 1-year low of $61.06 and a 1-year high of $82.75.

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 business had revenue of $317.73 million for the quarter, compared to analyst estimates of $319.30 million. Prosperity Bancshares had a net margin of 30.28% and a return on equity of 7.06%. Prosperity Bancshares’s quarterly revenue was down 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.37 earnings per share. Equities analysts anticipate that Prosperity Bancshares will post 5.83 EPS for the current fiscal year.

Insider Activity

In other news, Director Ned S. Holmes sold 500 shares of the business’s stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $74.29, for a total transaction of $37,145.00. Following the completion of the transaction, the director directly owned 83,915 shares of the company’s stock, valued at $6,234,045.35. The trade was a 0.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Over the last quarter, insiders have sold 15,050 shares of company stock worth $1,056,009. Company insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On Prosperity Bancshares

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Clearstead Advisors LLC lifted its holdings in shares of Prosperity Bancshares by 10.9% during the 3rd quarter. Clearstead Advisors LLC now owns 1,614 shares of the bank’s stock valued at $107,000 after buying an additional 159 shares during the period. Bfsg LLC lifted its holdings in Prosperity Bancshares by 5.1% in the third quarter. Bfsg LLC now owns 3,363 shares of the bank’s stock valued at $223,000 after acquiring an additional 164 shares during the period. AE Wealth Management LLC lifted its holdings in Prosperity Bancshares by 3.8% in the second quarter. AE Wealth Management LLC now owns 4,640 shares of the bank’s stock valued at $326,000 after acquiring an additional 172 shares during the period. Belpointe Asset Management LLC boosted its position in Prosperity Bancshares by 5.1% in the third quarter. Belpointe Asset Management LLC now owns 3,621 shares of the bank’s stock worth $240,000 after purchasing an additional 176 shares during the last quarter. Finally, Osaic Holdings Inc. grew its stake in shares of Prosperity Bancshares by 34.9% during the 2nd quarter. Osaic Holdings Inc. now owns 719 shares of the bank’s stock valued at $51,000 after purchasing an additional 186 shares during the period. Hedge funds and other institutional investors own 80.69% of the company’s stock.

Key Headlines Impacting Prosperity Bancshares

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

• Positive Sentiment: Big strategic scale-up: the deal would make Prosperity the second-largest Texas bank by deposits and adds 52 Stellar branches across Houston, Beaumont and Dallas — a meaningful deposit and market-share gain. Reuters: Prosperity to buy Stellar Bancorp
• Positive Sentiment: Q4 bottom-line beat and healthy margins: Prosperity reported $1.46 EPS (vs. $1.45 consensus) and a net margin ~30%, showing core profitability resilience despite a revenue decline versus year-ago. Zacks: PB tops Q4 estimates
• Neutral Sentiment: Deal structure: the $2.0B transaction is a mix of cash and stock (definitive merger agreement); execution, timing and regulatory approvals will drive the eventual financial impact. PR Newswire: Merger announcement
• Neutral Sentiment: Divergent analyst takes: some investors/analysts view the combination as a strong growth and efficiency opportunity (buy-the-dip arguments), while others say the market hasn’t fully rewarded PB yet. Seeking Alpha: Efficient, And Growing
• Negative Sentiment: Market reaction: investors reacted negatively (shares fell) amid concerns the deal will dilute near-term EPS, increase expenses for integration, and add execution/regulatory risk. AAII: Why PB stock is down
• Negative Sentiment: Top-line weakness: revenue was down ~5.9% year-over-year and came in slightly below some expectations, reinforcing investor caution about near-term growth before merger synergies materialize. MarketBeat: Q4 results and call

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.