Prosperity Bancshares, Inc. (NYSE:PB) Given Average Rating of "Hold" by Brokerages

Key Points

• Analyst consensus is “Hold”: Of 14 brokerages covering Prosperity Bancshares, seven recommend holding, five recommend buying and two recommend selling. The average 12-month price target is $78.36, compared with a recent share price of $70.31.
• Quarterly results exceeded expectations: Prosperity Bancshares reported earnings of $1.62 per share versus the $1.50 consensus estimate, while revenue rose 25.9% year over year to $391.25 million.
• Dividend remains a key shareholder return: The company declared a quarterly dividend of $0.60 per share, equivalent to $2.40 annually and a 3.4% yield, with a payout ratio of 41.59%.

Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) has earned a consensus recommendation of "Hold" from the fourteen ratings firms that are currently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation and five have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $78.3636.

Several research firms recently commented on PB. Morgan Stanley lowered shares of Prosperity Bancshares from an "equal weight" rating to an "underweight" rating and set a $80.00 price target on the stock. in a research report on Tuesday, September 8th. Weiss Ratings upgraded Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, July 29th. Cantor Fitzgerald reiterated an "overweight" rating and set a $80.00 price target on shares of Prosperity Bancshares in a research report on Tuesday, June 23rd. Citigroup boosted their price objective on Prosperity Bancshares from $75.00 to $79.00 and gave the company a "neutral" rating in a research report on Friday, July 31st. Finally, Royal Bank Of Canada upped their target price on Prosperity Bancshares from $78.00 to $80.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 30th.

Prosperity Bancshares Price Performance

Shares of PB stock opened at $70.31 on Thursday. Prosperity Bancshares has a 1-year low of $61.06 and a 1-year high of $77.20. The stock's 50-day moving average is $73.00 and its 200 day moving average is $70.39. The company has a market cap of $7.09 billion, a P/E ratio of 12.19, a PEG ratio of 0.77 and a beta of 0.63. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.75.

Prosperity Bancshares (NYSE:PB - Get Free Report) last posted its earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, beating analysts' consensus estimates 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 for the quarter was up 25.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.42 earnings per share. Research analysts predict that Prosperity Bancshares will post 6.48 earnings per share for the current fiscal year.

Prosperity Bancshares Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend is Tuesday, September 15th. Prosperity Bancshares's dividend payout ratio is currently 41.59%.

Insider Buying and Selling

In related news, Director Ned Holmes sold 500 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $71.42, for a total value of $35,710.00. Following the completion of the sale, the director owned 69,115 shares of the company's stock, valued at approximately $4,936,193.30. This trade represents a 0.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In the last three months, insiders have sold 11,000 shares of company stock valued at $802,879. 3.96% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Parkside Financial Bank & Trust raised its position in Prosperity Bancshares by 52.0% in the second quarter. Parkside Financial Bank & Trust now owns 576 shares of the bank's stock valued at $42,000 after purchasing an additional 197 shares during the period. SouthState Bank Corp purchased a new position in shares of Prosperity Bancshares during the fourth quarter worth $49,000. Global Retirement Partners LLC purchased a new stake in shares of Prosperity Bancshares in the 2nd quarter valued at $54,000. Eurizon Capital SGR S.p.A. acquired a new position in Prosperity Bancshares during the 4th quarter worth about $55,000. Finally, Root Financial Partners LLC boosted its holdings in Prosperity Bancshares by 310.6% during the 1st quarter. Root Financial Partners LLC now owns 1,162 shares of the bank's stock valued at $78,000 after acquiring an additional 879 shares during the period. 80.69% of the stock is currently 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 banking and financial services to individuals, businesses and institutions.

Prosperity Bank offers a range of deposit products, including checking, savings and time deposit accounts, along with consumer, residential mortgage, commercial and real estate lending. Its services also include treasury management, cash management, online and mobile banking, wealth management and other financial solutions designed for personal and business customers.

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

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