Prosperity Bancshares (NYSE:PB) Shares Gap Down – Here’s Why

Prosperity Bancshares, Inc. (NYSE:PB)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $72.90, but opened at $67.80. Prosperity Bancshares shares last traded at $66.2710, with a volume of 1,558,347 shares.

Prosperity Bancshares News Roundup

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

• Positive Sentiment: Announced acquisition of Stellar Bancorp for about $2.0 billion to expand its Texas deposit footprint and become the state’s second-largest bank by deposits — scale and deposit growth can improve long-term revenue opportunities and cost synergies. PROSPERITY BANCSHARES, INC.® AND STELLAR BANCORP, INC.
• Positive Sentiment: Board authorized a buyback of up to ~5% of outstanding shares (≈4.87M shares) through Jan 26, 2027, which supports the share price and signals management confidence in capital position. PROSPERITY BANCSHARES, INC.® ANNOUNCES STOCK REPURCHASE PROGRAM
• Positive Sentiment: Q4 EPS of $1.46 beat the consensus by $0.01 (and rose vs. prior year $1.37), showing underlying profitability resilience. Prosperity Bancshares (PB) Tops Q4 Earnings and Revenue Estimates
• Neutral Sentiment: Analyst/commentary pieces highlight long-term efficiency and growth thesis (buy-the-dip views) and argue PB remains undervalued — supportive for medium-term holders but not immediate price catalysts. Prosperity Bancshares: Efficient, And Growing, Buy The Dip
• Neutral Sentiment: Additional commentary argues the market still underprices PB relative to peers, reflecting differing investor views on growth vs. valuation. Prosperity Bancshares: Still Not Getting Its Due From The Market
• Neutral Sentiment: Zacks and other previews/recaps provide detail on key Q4 metrics vs. estimates — useful for modeling but not a decisive directional signal by itself. Prosperity Bancshares (PB) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Revenue of $317.7M slightly missed consensus (~$319.3M) and was down ~5.9% YoY; investors may be focusing on slowing revenue and potential near-term integration/dilution risks from the Stellar deal, contributing to selling pressure and higher volume. Prosperity Bancshares (NYSE:PB) Posts Q4 CY2025 Sales In Line With Estimates But Stock Drops

Wall Street Analyst Weigh In

Several brokerages have recently commented on PB. Piper Sandler cut their price target on Prosperity Bancshares from $84.00 to $77.00 and set an “overweight” rating on the stock in a research note on Thursday, October 30th. Royal Bank Of Canada reduced their target price on shares of Prosperity Bancshares from $78.00 to $72.00 and set a “sector perform” rating for the company in a report on Friday, October 10th. TD Cowen restated a “buy” rating on shares of Prosperity Bancshares in a research note on Wednesday, January 7th. Stephens upped their price target on Prosperity Bancshares from $77.00 to $81.00 and gave the stock an “overweight” rating in a research report on Thursday, October 30th. Finally, Barclays raised their price target on Prosperity Bancshares from $82.00 to $83.00 and gave the stock an “equal weight” rating in a report on Friday, December 19th. Seven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $80.75.

Prosperity Bancshares Stock Down 8.3%

The company has a market capitalization of $6.35 billion, a price-to-earnings ratio of 11.89, a PEG ratio of 0.94 and a beta of 0.68. The stock’s 50-day simple moving average is $70.84 and its two-hundred day simple moving average is $68.31.

Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings data on Wednesday, January 28th. The bank reported $1.46 EPS for the quarter, beating the consensus estimate of $1.45 by $0.01. The firm had revenue of $317.73 million during the quarter, compared to the consensus estimate of $319.30 million. Prosperity Bancshares had a return on equity of 7.06% and a net margin of 30.28%.The firm’s revenue was down 5.9% compared to the same quarter last year. During the same period in the prior year, the company earned $1.37 EPS. On average, sell-side analysts forecast that Prosperity Bancshares, Inc. will post 5.83 EPS for the current year.

Prosperity Bancshares Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a $0.60 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.6%. Prosperity Bancshares’s dividend payout ratio (DPR) is 42.78%.

Insider Activity

In related news, Director Ned S. Holmes sold 600 shares of the company’s stock in a transaction dated Wednesday, November 5th. The shares were sold at an average price of $66.84, for a total value of $40,104.00. Following the completion of the sale, the director owned 43,300 shares of the company’s stock, valued at approximately $2,894,172. This represents a 1.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Harrison Stafford II sold 800 shares of the business’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $70.76, for a total transaction of $56,608.00. Following the completion of the transaction, the director owned 107,937 shares in the company, valued at $7,637,622.12. The trade was a 0.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 15,050 shares of company stock valued at $1,056,009. 4.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Prosperity Bancshares

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC increased its stake in Prosperity Bancshares by 175.1% during the 2nd quarter. AQR Capital Management LLC now owns 2,383,162 shares of the bank’s stock worth $167,393,000 after buying an additional 1,516,939 shares during the period. American Century Companies Inc. grew its stake in shares of Prosperity Bancshares by 4,674.9% in the second quarter. American Century Companies Inc. now owns 1,426,917 shares of the bank’s stock worth $100,227,000 after acquiring an additional 1,397,033 shares in the last quarter. Norges Bank purchased a new stake in shares of Prosperity Bancshares during the second quarter worth $53,398,000. Vanguard Group Inc. raised its stake in shares of Prosperity Bancshares by 4.8% in the third quarter. Vanguard Group Inc. now owns 10,116,892 shares of the bank’s stock valued at $671,256,000 after acquiring an additional 465,227 shares in the last quarter. Finally, State Street Corp boosted its holdings in Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock valued at $373,231,000 after purchasing an additional 343,062 shares during the period. 80.69% of the stock is currently owned by hedge funds and other institutional investors.

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.