Prosperity Bancshares (NYSE:PB) Given New $78.00 Price Target at Citigroup

Key Points

• Citigroup raised Prosperity Bancshares’ price target to $78 from $77 while maintaining a Neutral rating, implying about 7.5% upside from the prior close.
• Analyst sentiment remains mixed: the consensus rating is Hold, with seven Buy, six Hold, and two Sell ratings and an average price target of $78.18.
• Prosperity reported strong quarterly results, with EPS of $1.67 exceeding the $1.35 estimate and revenue rising 56% year over year to $495.7 million. Shares traded around $72.54, while insiders have sold approximately $973,000 of stock over the past 90 days.

Prosperity Bancshares (NYSE:PB - Get Free Report) had its price target upped by Citigroup from $77.00 to $78.00 in a report released on Thursday, Benzinga reports. The firm currently has a "neutral" rating on the bank's stock. Citigroup's price objective would indicate a potential upside of 7.53% from the company's previous close.

Several other analysts have also recently commented on PB. Morgan Stanley increased their target price on Prosperity Bancshares from $80.00 to $81.00 and gave the stock an "underweight" rating in a report on Monday, September 28th. Stephens upped their price target on shares of Prosperity Bancshares from $85.00 to $87.00 and gave the stock an "overweight" rating in a research report on Thursday. Cantor Fitzgerald reduced their price target on shares of Prosperity Bancshares from $85.00 to $78.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 14th. Wall Street Zen upgraded shares of Prosperity Bancshares from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Piper Sandler lowered their price objective on shares of Prosperity Bancshares from $80.00 to $78.00 and set a "neutral" rating for the company in a research report on Thursday. Seven research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $78.18.

Prosperity Bancshares Price Performance

Shares of NYSE PB traded up $1.42 during mid-day trading on Thursday, hitting $72.54. 673,561 shares of the stock were exchanged, compared to its average volume of 1,102,884. The company has a market cap of $7.32 billion, a P/E ratio of 12.59, a PEG ratio of 0.77 and a beta of 0.66. The stock's fifty day simple moving average is $69.55 and its two-hundred day simple moving average is $70.35. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75. Prosperity Bancshares has a twelve month low of $63.20 and a twelve month high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The bank reported $1.67 EPS for the quarter, topping 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 business had revenue of $495.70 million for the quarter, compared to analyst estimates of $491.49 million. During the same period in the prior year, the company earned $1.45 EPS. Prosperity Bancshares's revenue for the quarter was up 56.0% on a year-over-year basis. As a group, analysts forecast that Prosperity Bancshares will post 6.46 EPS for the current fiscal year.

Insider Transactions at Prosperity Bancshares

In other news, Director Ned Holmes sold 600 shares of Prosperity Bancshares stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $74.61, for a total transaction of $44,766.00. Following the completion of the sale, the director owned 39,400 shares in the company, valued at $2,939,634. The trade was a 1.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In the last 90 days, insiders have sold 13,800 shares of company stock worth $973,234. Corporate insiders own 3.96% of the company's stock.

Hedge Funds Weigh In On Prosperity Bancshares

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Sumitomo Mitsui Trust Group Inc. bought a new position in shares of Prosperity Bancshares during the 3rd quarter worth approximately $373,000. Profund Advisors LLC boosted its holdings in 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. Americana Partners LLC bought a new position in Prosperity Bancshares in the third quarter valued at $570,000. VIRGINIA RETIREMENT SYSTEMS ET Al increased its stake in Prosperity Bancshares by 63.1% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 10,600 shares of the bank's stock valued at $702,000 after buying an additional 4,100 shares during the last quarter. Finally, Parcion Private Wealth LLC increased its stake in Prosperity Bancshares by 7.8% in the 3rd quarter. Parcion Private Wealth LLC now owns 7,849 shares of the bank's stock valued at $520,000 after buying an additional 571 shares during the last quarter. 80.69% of the stock is owned by institutional investors.

Key Stories Impacting Prosperity Bancshares

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

• Positive Sentiment: StoneX upgraded PB to Buy, signaling increased confidence in the bank’s earnings outlook and valuation. StoneX upgrade article
• Positive Sentiment: Third-quarter adjusted earnings beat expectations. Prosperity reported adjusted diluted EPS of $1.67, above consensus estimates, while revenue reached approximately $495.7 million, up 56% year over year and slightly ahead of estimates. GAAP diluted EPS was $1.18 after merger-related and other nonrecurring expenses. Prosperity third-quarter earnings release
• Positive Sentiment: The Stellar Bancorp merger is driving substantial scale. Loans increased 28.1% and deposits rose 26.5% during the quarter, while total assets reached $54.1 billion. Net interest margin improved to 3.73%, and nonperforming assets remained low at 0.41% of average interest-earning assets. Q3 earnings call highlights
• Positive Sentiment: Shareholder returns improved. The board raised the quarterly dividend by $0.04 to $0.64 per share, marking the 23rd consecutive annual increase. Prosperity also repurchased approximately 457,000 shares during the quarter. Dividend and buyback details
• Neutral Sentiment: Piper Sandler lowered its price target from $80 to $78 and retained a Neutral rating. The revised target still implies potential upside, but the reduction suggests more limited near-term valuation support than previously expected. Piper Sandler ratings
• Negative Sentiment: Director Ned Holmes reported two sales totaling 1,100 shares. The transactions were small relative to his remaining holdings, but repeated insider selling may weigh modestly on sentiment.

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.

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