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

Key Points

• Piper Sandler cut Prosperity Bancshares’ price target to $78 from $80 while maintaining a “neutral” rating, implying roughly 8.1% upside from the prior close. The broader analyst consensus is also “Hold,” with an average target of $77.91.
• Prosperity Bancshares reported adjusted quarterly EPS of $1.67, beating the $1.35 consensus, while revenue rose 56% year over year to $495.7 million. Loan and deposit growth, along with an expanding net interest margin, supported the results, although merger-related expenses reduced GAAP earnings.
• PB shares recently traded at $72.15, with a market capitalization of about $7.28 billion and a P/E ratio of 12.51. Insiders have sold shares in recent months, while institutional investors own approximately 80.69% of the stock.

Prosperity Bancshares (NYSE:PB - Get Free Report) had its target price dropped by equities researchers at Piper Sandler from $80.00 to $78.00 in a research note issued on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the bank's stock. Piper Sandler's price target indicates a potential upside of 8.11% from the company's previous close.

PB has been the subject of several other research reports. Cantor Fitzgerald reduced their target price on Prosperity Bancshares from $85.00 to $78.00 and set an "overweight" rating for the company in a report on Wednesday, October 14th. Stephens reaffirmed an "overweight" rating and set a $87.00 price target (up from $85.00) on shares of Prosperity Bancshares in a research note on Thursday. Morgan Stanley increased their price target on shares of Prosperity Bancshares from $80.00 to $81.00 and gave the company an "underweight" rating in a report on Monday, September 28th. Citigroup reduced their price objective on shares of Prosperity Bancshares from $79.00 to $77.00 and set a "neutral" rating for the company in a research note on Tuesday, September 22nd. Finally, Wall Street Zen upgraded shares of Prosperity Bancshares from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Six analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $77.91.

Prosperity Bancshares Stock Performance

Shares of PB stock traded up $1.03 during trading hours on Thursday, reaching $72.15. 46,433 shares of the company's stock were exchanged, compared to its average volume of 1,100,177. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.75. The company's 50 day moving average is $69.55 and its two-hundred day moving average is $70.35. The company has a market cap of $7.28 billion, a P/E ratio of 12.51, a price-to-earnings-growth ratio of 0.77 and a beta of 0.66. Prosperity Bancshares has a 1 year low of $63.20 and a 1 year high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The bank reported $1.67 earnings per share for the quarter, beating analysts' consensus estimates of $1.35 by $0.32. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%. The firm had revenue of $495.70 million for the quarter, compared to the consensus estimate of $491.49 million. During the same period in the previous year, the business earned $1.45 earnings per share. The company's revenue for the quarter was up 56.0% compared to the same quarter last year. Equities research analysts anticipate that Prosperity Bancshares will post 6.46 EPS for the current fiscal year.

Insider Transactions at Prosperity Bancshares

In related news, Director Ned Holmes sold 500 shares of the company's stock in a transaction that occurred on Wednesday, October 28th. The stock was sold at an average price of $70.05, for a total value of $35,025.00. Following the sale, the director owned 65,615 shares of the company's stock, valued at approximately $4,596,330.75. This represents a 0.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last 90 days, insiders sold 13,800 shares of company stock valued at $973,234. 3.96% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Prosperity Bancshares

Several hedge funds have recently bought and sold shares of the stock. Soltis Investment Advisors LLC lifted its stake in shares of Prosperity Bancshares by 4.4% during the 3rd quarter. Soltis Investment Advisors LLC now owns 3,617 shares of the bank's stock worth $239,000 after purchasing an additional 151 shares during the period. Parkside Financial Bank & Trust boosted its holdings in shares of Prosperity Bancshares by 52.0% during the second quarter. Parkside Financial Bank & Trust now owns 576 shares of the bank's stock worth $42,000 after purchasing an additional 197 shares during the last quarter. Earned Wealth Advisors LLC boosted its holdings in shares of Prosperity Bancshares by 6.2% during the first quarter. Earned Wealth Advisors LLC now owns 3,639 shares of the bank's stock worth $244,000 after purchasing an additional 213 shares during the last quarter. Profund Advisors LLC boosted its holdings in shares of Prosperity Bancshares by 6.7% during the third quarter. Profund Advisors LLC now owns 3,514 shares of the bank's stock worth $233,000 after purchasing an additional 221 shares during the last quarter. Finally, Farther Finance Advisors LLC grew its position in shares of Prosperity Bancshares by 15.9% in the third quarter. Farther Finance Advisors LLC now owns 1,867 shares of the bank's stock valued at $124,000 after purchasing an additional 256 shares during the period. Hedge funds and other institutional investors own 80.69% of the company's stock.

Prosperity Bancshares News Roundup

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

• Positive Sentiment: Adjusted earnings beat expectations. Prosperity reported adjusted diluted EPS of $1.67, above the $1.35-$1.63 range of analyst estimates, while revenue of $495.7 million modestly exceeded expectations and increased 56% year over year. Prosperity Bancshares third-quarter earnings release
• Positive Sentiment: Merger-driven growth and improving margins were key positives. Third-quarter loans rose 28.1% and deposits increased 26.5%. Net interest margin expanded to 3.73%, up 26 basis points from the second quarter and 49 basis points from a year earlier, while total assets reached $54.1 billion. Prosperity Bancshares 2026 third-quarter presentation
• Positive Sentiment: Shareholder returns improved. The board raised the quarterly dividend by $0.04, or 6.67%, to $0.64 per share—its 23rd consecutive annual increase. Prosperity also repurchased approximately 457,000 shares during the quarter and 1.5 million shares year to date. Dividend and buyback announcement
• Neutral Sentiment: Reported GAAP earnings were lower year over year. Net income was $141.5 million, or $1.18 per diluted share, compared with $137.6 million and $1.45 per share a year earlier. Results included $69.7 million of merger-related expenses, making adjusted earnings a more favorable measure of underlying performance.
• Negative Sentiment: Director selling may weigh modestly on sentiment. Director Ned Holmes sold a combined 1,100 shares for approximately $77,000, though he retained substantial holdings. The sales add to a broader pattern of reported insider selling without recent insider purchases. SEC insider transaction filing

About Prosperity Bancshares

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

Prosperity Bank offers deposit products, commercial and consumer lending, mortgage and real estate lending, treasury management, online and mobile banking, and other traditional banking services. Its lending activities include financing for commercial businesses, agriculture, residential and commercial real estate, and personal needs.

Founded in 1983, Prosperity Bancshares has expanded primarily through organic growth and the acquisition of community banks.

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.