Prosperity Bancshares, Inc. (NYSE:PB) Raises Dividend to $0.64 Per Share

Key Points

• Prosperity Bancshares raised its quarterly dividend 6.7% to $0.64 per share, equivalent to $2.56 annually and a 3.8% yield. The dividend is payable January 4 to shareholders of record December 15.
• The bank’s dividend appears well covered, with a 37.3% payout ratio; analysts expect next year’s earnings to support continued coverage.
• Prosperity Bancshares recently exceeded quarterly earnings and revenue estimates, while analyst sentiment remains mixed with an overall “Hold” rating and an average price target of $77.55.

Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) announced a quarterly dividend on Wednesday, October 21st. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.64 per share by the bank on Monday, January 4th. This represents a $2.56 annualized dividend and a dividend yield of 3.8%. The ex-dividend date of this dividend is Tuesday, December 15th. This is a 6.7% increase from Prosperity Bancshares's previous quarterly dividend of $0.60.

Prosperity Bancshares has a dividend payout ratio of 37.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Prosperity Bancshares to earn $7.36 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 32.6%.

Prosperity Bancshares Stock Down 0.1%

Shares of PB traded down $0.09 during midday trading on Wednesday, hitting $68.16. The company had a trading volume of 757,358 shares, compared to its average volume of 1,108,907. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75. Prosperity Bancshares has a 1 year low of $62.28 and a 1 year high of $77.20. The firm has a market capitalization of $6.87 billion, a P/E ratio of 11.81, a P/E/G ratio of 0.75 and a beta of 0.66. The company's 50-day simple moving average is $70.11 and its 200-day simple moving average is $70.51.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The bank reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.12. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%. The business had revenue of $391.25 million during the quarter, compared to analysts' expectations of $380.73 million. During the same period in the prior year, the firm posted $1.42 EPS. The business's quarterly revenue was up 25.9% compared to the same quarter last year. As a group, sell-side analysts expect that Prosperity Bancshares will post 6.46 EPS for the current year.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Barclays lifted their price objective on shares of Prosperity Bancshares from $68.00 to $70.00 and gave the company an "underweight" rating in a research note on Monday, October 5th. Piper Sandler increased their price objective on Prosperity Bancshares from $75.00 to $80.00 and gave the stock a "neutral" rating in a research report on Thursday, July 30th. Citigroup lowered their target price on Prosperity Bancshares from $79.00 to $77.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 22nd. Raymond James Financial upgraded Prosperity Bancshares from a "market perform" rating to an "outperform" rating and set a $78.00 price target for the company in a research note on Tuesday, October 6th. Finally, TD Cowen decreased their price target on Prosperity Bancshares from $84.00 to $78.00 and set a "buy" rating for the company in a report on Monday, October 5th. Six investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $77.55.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.