Prosperity Bancshares, Inc. (PB) - What Are Investment Firms Saying About This Stock?

Key Points

• Analysts have a consensus “Hold” rating on Prosperity Bancshares, with two sell, six hold, seven buy, and one strong-buy recommendations. The average 12-month price target is $78.36.
• The bank beat quarterly earnings estimates, reporting $1.67 per share versus the $1.35 consensus, while revenue rose 56% year over year to $495.7 million.
• Prosperity Bancshares raised its quarterly dividend from $0.60 to $0.64 per share, equivalent to a 3.6% annualized yield.

Shares of Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) have been given a consensus rating of "Hold" by the sixteen research firms that are presently covering the firm, Marketbeat reports. Two analysts have rated the stock with a sell rating, six have assigned a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $78.36.

PB has been the topic of a number of recent analyst reports. Weiss Ratings lowered shares of Prosperity Bancshares from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, October 23rd. Morgan Stanley upped their price target on shares of Prosperity Bancshares from $80.00 to $81.00 and gave the company an "underweight" rating in a research report on Monday, September 28th. Piper Sandler decreased 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 note on Thursday, October 29th. Keefe, Bruyette & Woods reissued an "outperform" rating on shares of Prosperity Bancshares in a research note on Thursday, October 29th. Finally, 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 report on Tuesday, October 6th.

Insider Transactions at Prosperity Bancshares

In other Prosperity Bancshares news, Director Ned Holmes sold 600 shares of the company's stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $74.04, for a total transaction of $44,424.00. Following the completion of the sale, the director owned 38,100 shares of the company's stock, valued at $2,820,924. This represents a 1.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold a total of 13,345 shares of company stock worth $938,944 over the last three months. 3.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Prosperity Bancshares

Hedge funds and other institutional investors have recently made changes to their positions in the business. Fifth Third Bancorp boosted its holdings in Prosperity Bancshares by 5.3% during the third quarter. Fifth Third Bancorp now owns 32,742 shares of the bank's stock valued at $2,168,000 after purchasing an additional 1,639 shares in the last quarter. King Luther Capital Management Corp lifted its position in shares of Prosperity Bancshares by 259.9% during the third quarter. King Luther Capital Management Corp now owns 439,334 shares of the bank's stock worth $29,088,000 after purchasing an additional 317,255 shares in the last quarter. New Mexico Educational Retirement Board grew its stake in shares of Prosperity Bancshares by 31.6% during the third quarter. New Mexico Educational Retirement Board now owns 24,600 shares of the bank's stock valued at $1,629,000 after purchasing an additional 5,900 shares during the last quarter. Ritholtz Wealth Management grew its stake in shares of Prosperity Bancshares by 6.7% during the third quarter. Ritholtz Wealth Management now owns 5,958 shares of the bank's stock valued at $394,000 after purchasing an additional 373 shares during the last quarter. Finally, Machina Capital S.A.S. bought a new position in Prosperity Bancshares in the 3rd quarter worth approximately $628,000. 80.69% of the stock is owned by institutional investors and hedge funds.

Prosperity Bancshares Trading Down 2.1%

Shares of PB opened at $72.05 on Friday. The business's 50-day moving average price is $69.55 and its 200 day moving average price is $70.37. The stock has a market capitalization of $7.27 billion, a P/E ratio of 13.10, a P/E/G ratio of 0.81 and a beta of 0.64. Prosperity Bancshares has a 1-year low of $63.20 and a 1-year high of $77.20. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 0.01.

Prosperity Bancshares (NYSE:PB - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The bank reported $1.67 EPS for the quarter, beating analysts' consensus estimates of $1.35 by $0.32. Prosperity Bancshares had a net margin of 26.99% and a return on equity of 7.68%. The company had revenue of $495.70 million during the quarter, compared to analyst estimates of $491.49 million. During the same period in the prior year, the firm earned $1.45 earnings per share. The business's quarterly revenue was up 56.0% on a year-over-year basis. Analysts expect that Prosperity Bancshares will post 6.47 earnings per share for the current year.

Prosperity Bancshares Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, January 4th. Shareholders of record on Tuesday, December 15th will be given a dividend of $0.64 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This is a positive change from Prosperity Bancshares's previous quarterly dividend of $0.60. This represents a $2.56 annualized dividend and a yield of 3.6%. Prosperity Bancshares's dividend payout ratio (DPR) is currently 46.55%.

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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