Citigroup Has Lowered Expectations for Prosperity Bancshares (NYSE:PB) Stock Price

Key Points

• Citigroup lowered its price target for Prosperity Bancshares from $79 to $77 while maintaining a “neutral” rating, implying approximately 9.95% upside from the stock’s $70.03 price.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average target price of $78.18. Five analysts rate the stock a Buy, seven a Hold, and two a Sell.
• Prosperity Bancshares exceeded quarterly expectations, reporting $1.62 in EPS versus the $1.50 consensus and revenue of $391.25 million, up 25.9% year over year.

Prosperity Bancshares (NYSE:PB - Get Free Report) had its target price lowered by equities research analysts at Citigroup from $79.00 to $77.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The firm presently has a "neutral" rating on the bank's stock. Citigroup's target price would suggest a potential upside of 9.95% from the stock's current price.

Several other equities research analysts have also issued reports on the stock. Cantor Fitzgerald reiterated an "overweight" rating and set a $80.00 target price on shares of Prosperity Bancshares in a research report on Tuesday, June 23rd. Wall Street Zen raised shares of Prosperity Bancshares from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Weiss Ratings raised shares of Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, July 29th. Benchmark assumed coverage on shares of Prosperity Bancshares in a research report on Wednesday, June 24th. They issued a "hold" rating for the company. Finally, Morgan Stanley cut Prosperity Bancshares from an "equal weight" rating to an "underweight" rating and set a $80.00 target price on the stock. in a research note on Tuesday, September 8th. Five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $78.18.

Prosperity Bancshares Price Performance

Prosperity Bancshares stock opened at $70.03 on Tuesday. The stock has a market cap of $7.06 billion, a price-to-earnings ratio of 12.20, a PEG ratio of 0.76 and a beta of 0.63. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.01. The business has a 50-day simple moving average of $72.89 and a 200 day simple moving average of $70.38. Prosperity Bancshares has a 52 week low of $61.06 and a 52 week high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.50 by $0.12. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The firm had revenue of $391.25 million during the quarter, compared to the consensus estimate of $380.73 million. During the same quarter last year, the company posted $1.42 EPS. The company's revenue for the quarter was up 25.9% on a year-over-year basis. On average, research analysts forecast that Prosperity Bancshares will post 6.48 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Ned Holmes sold 600 shares of Prosperity Bancshares stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $72.72, for a total value of $43,632.00. Following the transaction, the director owned 40,000 shares in the company, valued at approximately $2,908,800. The trade was a 1.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last 90 days, insiders have sold 12,100 shares of company stock valued at $880,912. 3.96% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in PB. BlackRock Inc. bought a new stake in shares of Prosperity Bancshares during the 2nd quarter valued at about $746,776,000. Dimensional Fund Advisors LP raised its stake in Prosperity Bancshares by 4.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank's stock worth $331,142,000 after buying an additional 205,291 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Prosperity Bancshares in the second quarter worth about $350,099,000. Geode Capital Management LLC lifted its holdings in Prosperity Bancshares by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 1,876,428 shares of the bank's stock worth $129,710,000 after buying an additional 7,602 shares during the period. Finally, North Reef Capital Management LP grew its holdings in shares of Prosperity Bancshares by 149.0% during the 1st quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank's stock worth $74,427,000 after acquiring an additional 662,877 shares during the period. 80.69% of the stock is owned by hedge funds and other institutional investors.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc is a bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides banking and financial services to individuals, businesses and institutions.

Prosperity Bank offers a range of deposit products, including checking, savings and time deposit accounts, along with consumer, residential mortgage, commercial and real estate lending. Its services also include treasury management, cash management, online and mobile banking, wealth management and other financial solutions designed for personal and business customers.

Founded in 1983, Prosperity Bancshares has expanded through organic growth and acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.