Algebris UK Ltd. Purchases New Shares in Prosperity Bancshares, Inc. $PB

Key Points

• Algebris UK Ltd. acquired 816,821 shares of Prosperity Bancshares in the second quarter, worth approximately $59.5 million and representing 0.81% of the bank. Institutional investors collectively own 80.69% of the stock.
• Prosperity Bancshares reported quarterly EPS of $1.62, beating estimates of $1.50, while revenue increased 25.9% year over year to $369.2 million, below analyst expectations.
• The bank declared a quarterly dividend of $0.60 per share, equivalent to a $2.40 annualized payout and a 3.3% yield. Analysts’ consensus rating is “Hold,” with an average price target of $78.36.

Algebris UK Ltd. purchased a new position in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 816,821 shares of the bank's stock, valued at approximately $59,465,000. Prosperity Bancshares accounts for 3.9% of Algebris UK Ltd.'s investment portfolio, making the stock its 9th largest holding. Algebris UK Ltd. owned 0.81% of Prosperity Bancshares as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in Prosperity Bancshares by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 10,256,927 shares of the bank's stock worth $708,856,000 after buying an additional 140,035 shares during the last quarter. BlackRock Inc. purchased a new position in Prosperity Bancshares in the second quarter worth $746,776,000. State Street Corp lifted its holdings in Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank's stock valued at $373,231,000 after acquiring an additional 343,062 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Prosperity Bancshares by 4.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank's stock valued at $331,142,000 after acquiring an additional 205,291 shares during the period. Finally, AQR Capital Management LLC lifted its holdings in Prosperity Bancshares by 34.5% in the fourth quarter. AQR Capital Management LLC now owns 4,600,715 shares of the bank's stock valued at $317,955,000 after acquiring an additional 1,179,307 shares during the period. 80.69% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Prosperity Bancshares

In related news, Director Ned S. Holmes sold 600 shares of the company's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $69.30, for a total transaction of $41,580.00. Following the completion of the sale, the director directly owned 40,400 shares of the company's stock, valued at approximately $2,799,720. This represents a 1.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders have sold 12,100 shares of company stock worth $872,923. Insiders own 3.96% of the company's stock.

Prosperity Bancshares Price Performance

PB opened at $72.94 on Thursday. The stock has a market capitalization of $7.36 billion, a PE ratio of 12.64, a P/E/G ratio of 0.81 and a beta of 0.64. 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 company's 50 day simple moving average is $72.98 and its 200 day simple moving average is $70.49. Prosperity Bancshares, Inc. has a 1 year low of $61.06 and a 1 year high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share for the quarter, beating analysts' consensus estimates of $1.50 by $0.12. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The firm had revenue of $369.18 million for the quarter, compared to analysts' expectations of $380.73 million. During the same quarter last year, the firm earned $1.42 earnings per share. The firm's revenue for the quarter was up 25.9% compared to the same quarter last year. As a group, sell-side analysts expect that Prosperity Bancshares, Inc. will post 6.45 EPS for the current year.

Prosperity Bancshares Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be issued a dividend of $0.60 per share. The ex-dividend date is Tuesday, September 15th. This represents a $2.40 annualized dividend and a dividend yield of 3.3%. Prosperity Bancshares's payout ratio is presently 41.59%.

Wall Street Analyst Weigh In

PB has been the topic of a number of research analyst reports. Cantor Fitzgerald reissued an "overweight" rating and set a $80.00 price objective on shares of Prosperity Bancshares in a report on Tuesday, June 23rd. TD Cowen boosted their target price on Prosperity Bancshares from $82.00 to $84.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Weiss Ratings raised Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, July 29th. Wall Street Zen upgraded shares of Prosperity Bancshares from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Piper Sandler increased their price objective on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Five analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $78.36.

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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