Prosperity Bancshares, Inc. (NYSE:PB) Receives $76.36 Average PT from Analysts

Shares of Prosperity Bancshares, Inc. (NYSE:PB) have received a consensus recommendation of “Hold” from the fourteen ratings firms that are presently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and five have issued a buy recommendation on the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $78.3636.

A number of equities research analysts have issued reports on the stock. TD Cowen increased their price objective on shares of Prosperity Bancshares from $82.00 to $84.00 and gave the stock a “buy” rating in a research note on Friday. Piper Sandler boosted 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. Wall Street Zen raised shares of Prosperity Bancshares from a “sell” rating to a “hold” rating in a report on Saturday. Weiss Ratings upgraded shares of Prosperity Bancshares from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $80.00 price objective on shares of Prosperity Bancshares in a research note on Tuesday, June 23rd.

Prosperity Bancshares Stock Performance

NYSE:PB opened at $74.79 on Wednesday. The company 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. Prosperity Bancshares has a fifty-two week low of $61.06 and a fifty-two week 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. The stock has a fifty day moving average price of $71.65 and a 200-day moving average price of $70.28.

Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.50 by $0.12. The business had revenue of $391.25 million during the quarter, compared to the consensus estimate of $380.73 million. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.Prosperity Bancshares’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.42 earnings per share. As a group, equities analysts anticipate that Prosperity Bancshares will post 6.34 EPS for the current fiscal year.

Prosperity Bancshares Dividend Announcement

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

Insider Buying and Selling at Prosperity Bancshares

In other news, Director Ned S. Holmes sold 500 shares of Prosperity Bancshares stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $74.25, for a total value of $37,125.00. Following the transaction, the director owned 72,115 shares in the company, valued at approximately $5,354,538.75. This trade represents a 0.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last 90 days, insiders sold 12,100 shares of company stock valued at $854,426. Company insiders own 3.96% of the company’s stock.

Institutional Trading of Prosperity Bancshares

Several large investors have recently bought and sold shares of PB. Sepio Capital LP increased its position in Prosperity Bancshares by 2.4% in the 4th quarter. Sepio Capital LP now owns 5,701 shares of the bank’s stock valued at $394,000 after buying an additional 133 shares in the last quarter. Commonwealth Equity Services LLC raised its stake in Prosperity Bancshares by 1.0% during the 4th quarter. Commonwealth Equity Services LLC now owns 14,324 shares of the bank’s stock worth $990,000 after buying an additional 145 shares during the period. Osaic Holdings Inc. boosted its holdings in Prosperity Bancshares by 34.9% in the second quarter. Osaic Holdings Inc. now owns 719 shares of the bank’s stock worth $51,000 after acquiring an additional 186 shares in the last quarter. Earned Wealth Advisors LLC boosted its holdings in Prosperity Bancshares by 6.2% in the first quarter. Earned Wealth Advisors LLC now owns 3,639 shares of the bank’s stock worth $244,000 after acquiring an additional 213 shares in the last quarter. Finally, Public Employees Retirement System of Ohio grew its stake in Prosperity Bancshares by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 39,655 shares of the bank’s stock valued at $2,631,000 after acquiring an additional 228 shares during the period. 80.69% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Prosperity Bancshares

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.

About Prosperity Bancshares

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.