29,863 Shares in Prosperity Bancshares, Inc. $PB Purchased by Edgestream Partners L.P.

Key Points

• Edgestream Partners purchased 29,863 Prosperity Bancshares shares in the first quarter, valued at approximately $2.0 million. Institutional investors collectively own 80.69% of the bank’s stock.
• Prosperity Bancshares exceeded quarterly expectations, reporting adjusted EPS of $1.62 versus a $1.51 consensus estimate, while revenue increased 25.9% year over year to $391.26 million, helped by the Stellar Bancorp acquisition.
• Analysts raised several price targets, including RBC and Piper Sandler to $80 and TD Cowen to $84, but the overall analyst consensus remains “Hold” with an average target of $78.36. The company also declared a quarterly dividend of $0.60 per share, yielding about 3.2% annually.

Edgestream Partners L.P. purchased a new stake in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 29,863 shares of the bank's stock, valued at approximately $2,006,000.

Several other large investors have also recently added to or reduced their stakes in the company. AQR Capital Management LLC increased its holdings in shares of Prosperity Bancshares by 175.1% during the second quarter. AQR Capital Management LLC now owns 2,383,162 shares of the bank's stock worth $167,393,000 after buying an additional 1,516,939 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC boosted its holdings in shares of Prosperity Bancshares by 910.4% in the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 1,311,051 shares of the bank's stock worth $90,607,000 after acquiring an additional 1,181,295 shares in the last quarter. North Reef Capital Management LP grew its position in Prosperity Bancshares by 149.0% during the 1st quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank's stock worth $74,427,000 after acquiring an additional 662,877 shares during the last quarter. Artisan Partners Limited Partnership bought a new stake in Prosperity Bancshares during the 4th quarter worth approximately $44,822,000. Finally, Norges Bank acquired a new stake in Prosperity Bancshares during the 4th quarter valued at $37,645,000. 80.69% of the stock is owned by institutional investors.

More Prosperity Bancshares News

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Strong Q2 earnings and revenue growth: Prosperity Bancshares reported adjusted earnings of $1.62 per share, exceeding the $1.51 consensus estimate, while revenue rose 25.9% year over year to $391.26 million. Results benefited from contributions from the Stellar Bancorp acquisition and the absence of a credit-loss provision. PB's Q2 Earnings Beat Estimates as Revenues Rise, Stellar Deal Closed
• Positive Sentiment: Merger upside highlighted: Management’s earnings call emphasized the potential benefits of completing the Stellar Bancorp buyout, including increased scale and revenue contributions. Investors may view the integration as a source of additional earnings growth. Prosperity Bancshares Earnings Call Highlights Merger Upside
• Positive Sentiment: Price targets raised: Royal Bank of Canada increased its target from $78 to $80, while Piper Sandler raised its target from $75 to $80. Both targets indicate approximately 7% potential upside from the referenced trading level, although neither firm assigned a bullish rating.
• Neutral Sentiment: Dividend appeal: A recent analysis points to Prosperity Bancshares’ potential as a dividend stock, which could attract income-focused investors, though the article does not identify a new dividend increase or policy change. This is Why Prosperity Bancshares Is a Great Dividend Stock
• Negative Sentiment: Insider selling: Director Ned S. Holmes sold a combined 1,100 shares worth roughly $81,700. The sales reduced his holdings by less than 2.2% overall, making the signal relatively minor but modestly negative.

Insiders Place Their Bets

In other Prosperity Bancshares news, Director Ned S. Holmes sold 500 shares of the company's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $74.25, for a total transaction of $37,125.00. Following the transaction, the director directly owned 72,115 shares in the company, valued at approximately $5,354,538.75. This represents a 0.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last three months, insiders sold 12,100 shares of company stock worth $854,426. Insiders own 3.96% of the company's stock.

Analysts Set New Price Targets

PB has been the subject of several research analyst reports. Weiss Ratings upgraded Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday. Royal Bank Of Canada raised their target price on Prosperity Bancshares from $78.00 to $80.00 and gave the company a "sector perform" rating in a research note on Thursday. Morgan Stanley reaffirmed an "equal weight" rating and issued a $80.00 price target (down from $85.00) on shares of Prosperity Bancshares in a report on Monday, July 6th. TD Cowen upped their price target on shares of Prosperity Bancshares from $82.00 to $84.00 and gave the stock a "buy" rating in a research report on Friday. Finally, Piper Sandler increased their price objective on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the stock a "neutral" rating in a report on Thursday. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Prosperity Bancshares has an average rating of "Hold" and an average price target of $78.36.

Prosperity Bancshares Stock Down 0.1%

NYSE:PB opened at $74.79 on Monday. The company has a market cap of $7.54 billion, a price-to-earnings ratio of 12.96, a P/E/G ratio of 1.18 and a beta of 0.63. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75. The stock's fifty day moving average price is $71.65 and its two-hundred day moving average price is $70.28. Prosperity Bancshares, Inc. has a 52-week low of $61.06 and a 52-week high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, beating the consensus estimate 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 return on equity of 7.39% and a net margin of 29.95%.The business's revenue for the quarter was up 25.9% on a year-over-year basis. During the same period last year, the firm earned $1.42 EPS. On average, analysts anticipate that Prosperity Bancshares, Inc. will post 6.37 EPS for the current year.

Prosperity Bancshares Dividend Announcement

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 given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Tuesday, September 15th. Prosperity Bancshares's dividend payout ratio (DPR) is presently 41.59%.

Prosperity Bancshares Profile

Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.

Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.

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