Raymond James Financial Upgrades Prosperity Bancshares (NYSE:PB) to Outperform

Key Points

• Raymond James upgraded Prosperity Bancshares from “market perform” to “outperform” and set a $78 price target, implying approximately 15.9% upside from the reported $67.28 share price.
• Analyst sentiment remains mixed: the stock has an overall “Hold” consensus rating, with six Buy, six Hold, and two Sell ratings, and an average price target of $78.
• Prosperity Bancshares exceeded quarterly expectations, reporting $1.62 in EPS versus the $1.50 consensus and $391.25 million in revenue, up 25.9% year over year.

Prosperity Bancshares (NYSE:PB - Get Free Report) was upgraded by research analysts at Raymond James Financial from a "market perform" rating to an "outperform" rating in a note issued to investors on Tuesday, Briefing.com reports. The firm presently has a $78.00 price target on the bank's stock. Raymond James Financial's target price points to a potential upside of 15.94% from the stock's current price.

Several other research analysts have also recently weighed in on PB. Citigroup lowered their target price on Prosperity Bancshares from $79.00 to $77.00 and set a "neutral" rating on the stock in a report on Tuesday, September 22nd. TD Cowen lowered their price objective on Prosperity Bancshares from $84.00 to $78.00 and set a "buy" rating on the stock in a research note on Monday. Wall Street Zen upgraded Prosperity Bancshares from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Benchmark initiated coverage on Prosperity Bancshares in a report on Wednesday, June 24th. They set a "hold" rating on the stock. Finally, Weiss Ratings cut shares of Prosperity Bancshares from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, September 24th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $78.00.

Prosperity Bancshares Price Performance

Shares of NYSE PB opened at $67.28 on Tuesday. The firm has a 50-day simple moving average of $71.73 and a 200-day simple moving average of $70.42. 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 stock has a market capitalization of $6.79 billion, a price-to-earnings ratio of 11.66, a price-to-earnings-growth ratio of 0.73 and a beta of 0.66. 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 announced its quarterly earnings data on Wednesday, July 29th. The bank reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.12. The company had revenue of $391.25 million during the quarter, compared to analysts' expectations of $380.73 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. Prosperity Bancshares's revenue was up 25.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.42 EPS. On average, equities analysts predict 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 the company's stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $66.56, for a total value of $39,936.00. Following the transaction, the director owned 38,600 shares of the company's stock, valued at $2,569,216. This represents a 1.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders sold a total of 11,600 shares of company stock valued at $835,267 in the last quarter. 3.96% of the stock is owned by insiders.

Institutional Trading of Prosperity Bancshares

Hedge funds and other institutional investors have recently modified their holdings of the business. Gator Capital Management LLC acquired a new stake in Prosperity Bancshares during the 4th quarter worth approximately $2,051,000. Bull Harbor Capital LLC purchased a new position in Prosperity Bancshares in the first quarter valued at $1,019,000. First National Bank of Omaha purchased a new position in Prosperity Bancshares in the fourth quarter valued at $6,390,000. Bank of New York Mellon Corp acquired a new position in Prosperity Bancshares during the 2nd quarter worth $57,877,000. Finally, SummitTX Capital L.P. purchased a new stake in Prosperity Bancshares during the 1st quarter worth about $3,878,000. 80.69% of the stock is owned by institutional investors and hedge funds.

About Prosperity Bancshares

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

Prosperity Bank offers deposit accounts, commercial and consumer lending, mortgage and real estate loans, treasury management, cash management, online and mobile banking, and other related financial services. Its lending activities support businesses, agricultural customers, real estate projects and consumers.

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

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