DA Davidson Expects Lower Earnings for Prosperity Bancshares

Key Points

• DA Davidson has revised its earnings per share estimate for Prosperity Bancshares for FY2025 down to $5.71, from a previous estimate of $5.84, while the consensus is at $5.83.
• Prosperity Bancshares recently reported quarterly earnings of $1.42 per share, exceeding analyst expectations of $1.40, but revenue fell short of predictions at $310.70 million compared to an expected $315.66 million.
• The company has declared a quarterly dividend of $0.58 per share, with an annualized yield of 3.43%, payable on October 1st to shareholders as of September 15th.

Prosperity Bancshares, Inc. (NYSE:PB - Free Report) - Research analysts at DA Davidson lowered their FY2025 earnings per share estimates for shares of Prosperity Bancshares in a research report issued to clients and investors on Thursday, July 24th. DA Davidson analyst P. Winter now expects that the bank will post earnings per share of $5.71 for the year, down from their prior estimate of $5.84. The consensus estimate for Prosperity Bancshares' current full-year earnings is $5.83 per share. DA Davidson also issued estimates for Prosperity Bancshares' FY2026 earnings at $6.37 EPS.

A number of other research analysts have also recently weighed in on PB. Jefferies Financial Group assumed coverage on shares of Prosperity Bancshares in a research note on Wednesday, May 21st. They set a "buy" rating and a $85.00 price objective for the company. Wall Street Zen raised shares of Prosperity Bancshares from a "sell" rating to a "hold" rating in a research note on Tuesday, May 13th. Piper Sandler lowered their target price on shares of Prosperity Bancshares from $86.00 to $84.00 and set an "overweight" rating for the company in a research note on Thursday. Hovde Group lowered their target price on shares of Prosperity Bancshares from $85.00 to $83.00 and set an "outperform" rating for the company in a research note on Thursday. Finally, Barclays lowered their target price on shares of Prosperity Bancshares from $88.00 to $86.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 8th. Seven equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company's stock. According to MarketBeat.com, Prosperity Bancshares currently has an average rating of "Moderate Buy" and an average target price of $84.57.

Prosperity Bancshares Trading Up 0.2%

Shares of Prosperity Bancshares stock opened at $67.70 on Monday. The company has a 50-day moving average of $70.74 and a two-hundred day moving average of $72.10. Prosperity Bancshares has a 12-month low of $61.57 and a 12-month high of $86.75. The stock has a market cap of $6.45 billion, a PE ratio of 12.31, a price-to-earnings-growth ratio of 1.01 and a beta of 0.68.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The bank reported $1.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.40 by $0.02. Prosperity Bancshares had a net margin of 29.37% and a return on equity of 6.99%. The company had revenue of $310.70 million during the quarter, compared to analysts' expectations of $315.66 million. During the same period last year, the company posted $1.22 earnings per share.

Institutional Investors Weigh In On Prosperity Bancshares

Several large investors have recently made changes to their positions in PB. Norges Bank acquired a new stake in shares of Prosperity Bancshares in the fourth quarter valued at approximately $68,986,000. T. Rowe Price Investment Management Inc. increased its stake in shares of Prosperity Bancshares by 14.6% in the first quarter. T. Rowe Price Investment Management Inc. now owns 3,232,995 shares of the bank's stock valued at $230,739,000 after purchasing an additional 412,283 shares during the period. North Reef Capital Management LP acquired a new position in shares of Prosperity Bancshares during the fourth quarter valued at approximately $29,211,000. Nuveen LLC acquired a new position in shares of Prosperity Bancshares during the first quarter valued at approximately $25,491,000. Finally, AQR Capital Management LLC increased its stake in shares of Prosperity Bancshares by 56.2% during the first quarter. AQR Capital Management LLC now owns 866,223 shares of the bank's stock valued at $61,008,000 after acquiring an additional 311,698 shares during the period. Institutional investors and hedge funds own 80.69% of the company's stock.

Insider Activity at Prosperity Bancshares

In other news, Director Ned S. Holmes sold 600 shares of the company's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $70.89, for a total transaction of $42,534.00. Following the completion of the transaction, the director directly owned 45,700 shares of the company's stock, valued at approximately $3,239,673. This represents a 1.30% 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 the SEC website. Insiders sold 12,500 shares of company stock worth $885,446 over the last three months. 4.20% of the stock is currently owned by corporate insiders.

Prosperity Bancshares Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Monday, September 15th will be issued a dividend of $0.58 per share. This represents a $2.32 annualized dividend and a dividend yield of 3.43%. The ex-dividend date is Monday, September 15th. Prosperity Bancshares's dividend payout ratio (DPR) is presently 42.18%.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery.

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