TD Cowen Cuts Prosperity Bancshares (NYSE:PB) Price Target to $78.00

Key Points

• TD Cowen lowered Prosperity Bancshares’ price target from $84 to $78 while maintaining a “buy” rating, implying approximately 15.8% upside from the prior close.
• Analyst sentiment is mixed: the stock has an average “hold” rating and an average price target of $77.91, based on five buys, seven holds, and two sells.
• Prosperity Bancshares beat quarterly expectations, reporting $1.62 in earnings per share versus the $1.50 consensus estimate and $391.25 million in revenue; revenue rose 25.9% year over year.

Prosperity Bancshares (NYSE:PB - Get Free Report) had its price objective dropped by research analysts at TD Cowen from $84.00 to $78.00 in a research note issued on Monday, Benzinga reports. The firm presently has a "buy" rating on the bank's stock. TD Cowen's price objective would suggest a potential upside of 15.80% from the stock's previous close.

Several other equities analysts have also commented on the company. Wall Street Zen upgraded Prosperity Bancshares from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Benchmark initiated coverage on shares of Prosperity Bancshares in a research note on Wednesday, June 24th. They issued a "hold" rating for the company. Piper Sandler upped their price objective on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. Morgan Stanley increased their target price on shares of Prosperity Bancshares from $80.00 to $81.00 and gave the stock an "underweight" rating in a report on Monday, September 28th. Finally, Weiss Ratings downgraded shares of Prosperity Bancshares from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, September 24th. Five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $77.91.

Prosperity Bancshares Trading Down 0.0%

NYSE:PB traded down $0.02 during midday trading on Monday, hitting $67.36. The stock had a trading volume of 138,392 shares, compared to its average volume of 1,122,379. Prosperity Bancshares has a one year low of $61.06 and a one year high of $77.20. The company has a market capitalization of $6.79 billion, a price-to-earnings ratio of 11.68, a PEG ratio of 0.73 and a beta of 0.66. The stock has a 50-day moving average of $71.84 and a 200 day moving average of $70.40. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.01.

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

Insider Buying and Selling at Prosperity Bancshares

In related news, Director Ned Holmes sold 600 shares of the firm's stock in a transaction dated Wednesday, September 30th. The stock was sold at an average price of $66.56, for a total transaction of $39,936.00. Following the sale, the director owned 38,600 shares of the company's stock, valued at $2,569,216. This trade represents a 1.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In the last three months, insiders sold 11,600 shares of company stock worth $835,267. Corporate insiders own 3.96% of the company's stock.

Institutional Trading of Prosperity Bancshares

Hedge funds have recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of Prosperity Bancshares during the 2nd quarter worth approximately $746,776,000. Dimensional Fund Advisors LP grew its holdings 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 purchasing an additional 205,291 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in Prosperity Bancshares in the second quarter worth $350,099,000. North Reef Capital Management LP increased its position in shares of Prosperity Bancshares by 149.0% during the first quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank's stock worth $74,427,000 after purchasing an additional 662,877 shares in the last quarter. Finally, Algebris UK Ltd. acquired a new position in shares of Prosperity Bancshares during the second quarter worth $59,465,000. 80.69% of the stock is owned by hedge funds and other institutional investors.

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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