Prosperity Bancshares (NYSE:PB) Price Target Raised to $79.00

Key Points

• Royal Bank of Canada raised Prosperity Bancshares’ price target to $79 from $77 while maintaining a “sector perform” rating, implying 8.91% upside from the prior close.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a consensus price target of $78.36, with seven Buy, six Hold, and two Sell ratings.
• Prosperity Bancshares exceeded quarterly expectations, reporting $1.67 in adjusted EPS and $495.7 million in revenue, up 56% year over year. Shares recently traded at $72.54, near the midpoint of their 12-month range.

Prosperity Bancshares (NYSE:PB - Get Free Report) had its target price raised by equities researchers at Royal Bank Of Canada from $77.00 to $79.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has a "sector perform" rating on the bank's stock. Royal Bank Of Canada's price target indicates a potential upside of 8.91% from the company's previous close.

A number of other equities research analysts also recently commented on the company. Citigroup lifted their price objective on Prosperity Bancshares from $77.00 to $78.00 and gave the company a "neutral" rating in a research report on Thursday. Keefe, Bruyette & Woods reiterated an "outperform" rating on shares of Prosperity Bancshares in a research report on Thursday. Raymond James Financial raised Prosperity Bancshares from a "market perform" rating to an "outperform" rating and set a $78.00 price target on the stock in a research note on Tuesday, October 6th. Barclays lifted their price target on Prosperity Bancshares from $68.00 to $70.00 and gave the company an "underweight" rating in a report on Monday, October 5th. Finally, Cantor Fitzgerald dropped their price objective on shares of Prosperity Bancshares from $85.00 to $78.00 and set an "overweight" rating for the company in a research note on Wednesday, October 14th. Seven analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $78.36.

Prosperity Bancshares Price Performance

Shares of NYSE:PB traded up $1.42 during trading on Thursday, hitting $72.54. 1,284,739 shares of the stock were exchanged, compared to its average volume of 1,106,336. The company has a fifty day moving average price of $69.55 and a two-hundred day moving average price of $70.35. The company has a market cap of $7.32 billion, a PE ratio of 12.57, a P/E/G ratio of 0.77 and a beta of 0.66. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.01. Prosperity Bancshares has a 12-month low of $63.20 and a 12-month high of $77.20.

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

Insider Buying and Selling

In other Prosperity Bancshares 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 transaction, the director directly owned 39,400 shares of the company's stock, valued at $2,939,634. The trade was a 1.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders have sold a total of 13,800 shares of company stock valued at $973,234 in the last 90 days. Company insiders own 3.96% of the company's stock.

Institutional Investors Weigh In On Prosperity Bancshares

Several large investors have recently made changes to their positions in the business. Sumitomo Mitsui Trust Group Inc. bought a new position in shares of Prosperity Bancshares in the third quarter valued at approximately $373,000. Profund Advisors LLC increased its holdings in Prosperity Bancshares by 6.7% in the third quarter. Profund Advisors LLC now owns 3,514 shares of the bank's stock worth $233,000 after buying an additional 221 shares during the last quarter. Americana Partners LLC bought a new position in shares of Prosperity Bancshares during the 3rd quarter valued at $570,000. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its stake in Prosperity Bancshares by 63.1% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 10,600 shares of the bank's stock worth $702,000 after purchasing an additional 4,100 shares in the last quarter. Finally, Parcion Private Wealth LLC grew its holdings in shares of Prosperity Bancshares by 7.8% during the third quarter. Parcion Private Wealth LLC now owns 7,849 shares of the bank's stock worth $520,000 after purchasing an additional 571 shares during the last quarter. Institutional investors and hedge funds 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: 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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