Zacks Investment Research Lowers Prosperity Bancshares (PB) to Sell
Zacks Investment Research cut shares of Prosperity Bancshares (NYSE:PB) from a hold rating to a sell rating in a research note released on Friday morning.
According to Zacks, “Prosperity Bancshares does not have a decent earnings surprise history. It beat the Zacks Consensus Estimate in only one of the trailing four quarters. Further, earnings estimates have remained stable ahead of the company’s fourth quarter 2018 results. Mounting operating expenses and significant exposure to real estate in the company’s loan portfolio remain major near-term concerns. However, the company’s shares have outperformed the industry in the past year. Although the bank's continued expansion via acquisitions, and solid loan and deposit balances support profitability, dismal performance of mortgage banking business (owing to higher interest rates) will impede revenue growth to some extent.”
Several other equities analysts have also weighed in on PB. Morgan Stanley dropped their price objective on shares of Prosperity Bancshares from $75.00 to $73.00 and set an equal weight rating on the stock in a report on Tuesday, September 18th. Stephens set a $70.00 price objective on shares of Prosperity Bancshares and gave the company a hold rating in a report on Wednesday, October 24th. Robert W. Baird upgraded shares of Prosperity Bancshares from a neutral rating to an outperform rating in a report on Thursday, October 25th. SunTrust Banks dropped their price objective on shares of Prosperity Bancshares to $68.00 and set a buy rating on the stock in a report on Thursday, October 25th. They noted that the move was a valuation call. Finally, Hovde Group upgraded shares of Prosperity Bancshares from a market perform rating to an outperform rating and set a $70.00 price objective on the stock in a report on Wednesday, January 2nd. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and three have given a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $71.57.
Prosperity Bancshares (NYSE:PB) last issued its quarterly earnings results on Wednesday, October 24th. The bank reported $1.18 EPS for the quarter, meeting the Zacks’ consensus estimate of $1.18. Prosperity Bancshares had a net margin of 36.91% and a return on equity of 7.86%. The business had revenue of $187.94 million for the quarter, compared to analysts’ expectations of $189.08 million. During the same quarter in the prior year, the firm posted $0.98 earnings per share. On average, equities research analysts expect that Prosperity Bancshares will post 4.59 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, January 2nd. Investors of record on Saturday, December 15th were issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.45%. The ex-dividend date was Thursday, December 13th. This is a positive change from Prosperity Bancshares’s previous quarterly dividend of $0.36. Prosperity Bancshares’s dividend payout ratio is currently 41.62%.
In other Prosperity Bancshares news, Vice Chairman H E. Timanus, Jr. bought 5,000 shares of the stock in a transaction that occurred on Monday, December 24th. The shares were bought at an average price of $57.65 per share, for a total transaction of $288,250.00. Following the acquisition, the insider now directly owns 147,447 shares of the company’s stock, valued at approximately $8,500,319.55. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert H. Steelhammer sold 3,615 shares of the company’s stock in a transaction dated Friday, October 26th. The stock was sold at an average price of $62.97, for a total transaction of $227,636.55. Following the completion of the sale, the director now owns 135,235 shares in the company, valued at approximately $8,515,747.95. The disclosure for this sale can be found here. Corporate insiders own 5.05% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of PB. Retirement Systems of Alabama grew its position in Prosperity Bancshares by 0.3% in the 4th quarter. Retirement Systems of Alabama now owns 86,023 shares of the bank’s stock worth $5,359,000 after purchasing an additional 283 shares in the last quarter. Diversified Trust Co grew its position in Prosperity Bancshares by 5.6% in the 3rd quarter. Diversified Trust Co now owns 5,690 shares of the bank’s stock worth $395,000 after purchasing an additional 300 shares in the last quarter. Vanguard Group Inc grew its position in Prosperity Bancshares by 1.4% in the 3rd quarter. Vanguard Group Inc now owns 6,511,344 shares of the bank’s stock worth $451,561,000 after purchasing an additional 90,531 shares in the last quarter. Vanguard Group Inc. grew its position in Prosperity Bancshares by 1.4% in the 3rd quarter. Vanguard Group Inc. now owns 6,511,344 shares of the bank’s stock worth $451,561,000 after purchasing an additional 90,531 shares in the last quarter. Finally, Standard Life Aberdeen plc grew its position in Prosperity Bancshares by 2.3% in the 3rd quarter. Standard Life Aberdeen plc now owns 52,539 shares of the bank’s stock worth $3,643,000 after purchasing an additional 1,182 shares in the last quarter. Institutional investors own 81.26% of the company’s stock.
Prosperity Bancshares Company Profile
Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to small and medium-sized businesses, and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts. The company also offers 1-4 family residential mortgage, commercial mortgage and multifamily residential, commercial and industrial, agricultural real estate, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; and consumer durables and home equity loans.
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