Azora Capital LP Invests $29.12 Million in Prosperity Bancshares, Inc. $PB

Key Points

• Azora Capital acquired 398,735 Prosperity Bancshares shares worth approximately $29.12 million, representing about 0.40% of the bank. Institutional investors collectively own 80.69% of the company.
• Prosperity Bancshares reported quarterly EPS of $1.62, beating the $1.50 consensus estimate, while revenue rose 25.9% year over year to $369.18 million, below expectations.
• The company declared a quarterly dividend of $0.60, equivalent to $2.40 annually and a 3.3% yield. Analysts maintain a consensus “Hold” rating with an average price target of $78.36.

Azora Capital LP bought a new stake in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 398,735 shares of the bank's stock, valued at approximately $29,120,000. Azora Capital LP owned about 0.40% of Prosperity Bancshares as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. BlackRock Inc. bought a new position in Prosperity Bancshares during the second quarter valued at $746,776,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of Prosperity Bancshares in the 2nd quarter worth about $350,099,000. AQR Capital Management LLC lifted its holdings in shares of Prosperity Bancshares by 175.1% in the 2nd quarter. AQR Capital Management LLC now owns 2,383,162 shares of the bank's stock worth $167,393,000 after acquiring an additional 1,516,939 shares during the last quarter. Algebris UK Ltd. bought a new stake in shares of Prosperity Bancshares in the 2nd quarter worth about $59,465,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Prosperity Bancshares during the 2nd quarter worth about $57,877,000. Hedge funds and other institutional investors own 80.69% of the company's stock.

Prosperity Bancshares Trading Up 0.8%

Shares of NYSE PB opened at $73.11 on Thursday. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.01. The business has a fifty day simple moving average of $73.11 and a two-hundred day simple moving average of $70.55. The firm has a market cap of $7.37 billion, a PE ratio of 12.67, a price-to-earnings-growth ratio of 0.79 and a beta of 0.64. Prosperity Bancshares, Inc. has a twelve month low of $61.06 and a twelve month 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, topping the consensus estimate of $1.50 by $0.12. The business had revenue of $369.18 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% compared to the same quarter last year. During the same period in the prior year, the business earned $1.42 EPS. Analysts expect that Prosperity Bancshares, Inc. will post 6.47 earnings per share for the current fiscal year.

Prosperity Bancshares Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be issued a $0.60 dividend. 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 currently 41.59%.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $80.00 target price on shares of Prosperity Bancshares in a research note on Tuesday, June 23rd. Weiss Ratings raised Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, July 29th. Benchmark started coverage on Prosperity Bancshares in a report on Wednesday, June 24th. They set a "hold" rating for the company. Wall Street Zen upgraded Prosperity Bancshares from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Royal Bank Of Canada upped their price objective on Prosperity Bancshares from $78.00 to $80.00 and gave the company a "sector perform" rating in a research report on Thursday, July 30th. Five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Prosperity Bancshares currently has a consensus rating of "Hold" and an average target price of $78.36.

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, August 26th. The shares were sold at an average price of $73.18, for a total value of $43,908.00. Following the completion of the sale, the director owned 39,100 shares of the company's stock, valued at approximately $2,861,338. This represents a 1.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last three months, insiders have sold 12,100 shares of company stock valued at $877,186. Insiders own 3.96% of the company's stock.

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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