BlackRock Inc. Invests $746.78 Million in Prosperity Bancshares, Inc. $PB

Key Points

• BlackRock acquired a $746.8 million stake in Prosperity Bancshares during the second quarter, representing approximately 10.14% of the company. Institutional investors collectively own 80.69% of PB.
• Prosperity Bancshares beat quarterly EPS estimates, reporting $1.62 versus the $1.50 consensus, while revenue rose 25.9% year over year. Zacks also raised several medium-term earnings forecasts, although some later-quarter estimates were trimmed.
• Analysts maintain a consensus “Hold” rating with an average price target of $78.36, compared with the stock’s $72.86 opening price. The company declared a quarterly dividend of $0.60 per share, implying a 3.3% annualized yield.

BlackRock Inc. acquired a new stake in Prosperity Bancshares, Inc. (NYSE:PB - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 10,225,601 shares of the bank's stock, valued at approximately $746,776,000. BlackRock Inc. owned about 10.14% of Prosperity Bancshares at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in PB. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Prosperity Bancshares by 21.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,198 shares of the bank's stock worth $2,155,000 after acquiring an additional 5,326 shares in the last quarter. NewEdge Advisors LLC increased its stake in shares of Prosperity Bancshares by 36.8% during the 1st quarter. NewEdge Advisors LLC now owns 7,295 shares of the bank's stock worth $521,000 after purchasing an additional 1,962 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Prosperity Bancshares by 5.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 346,151 shares of the bank's stock worth $24,705,000 after purchasing an additional 17,345 shares during the last quarter. Jane Street Group LLC raised its holdings in shares of Prosperity Bancshares by 182.8% in the 1st quarter. Jane Street Group LLC now owns 104,755 shares of the bank's stock valued at $7,476,000 after purchasing an additional 67,712 shares during the period. Finally, Sivia Capital Partners LLC bought a new stake in shares of Prosperity Bancshares in the 2nd quarter valued at about $359,000. 80.69% of the stock is owned by institutional investors.

Key Prosperity Bancshares News

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

• Positive Sentiment: Zacks raised several earnings forecasts. The firm increased its FY2026 EPS estimate to $6.40 from $6.24, lifted FY2027 EPS to $7.22 from $7.16, and raised estimates for Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q4 2027 and Q1 2028. These revisions signal improving expectations for PB’s medium-term profitability. Prosperity Bancshares analyst estimates
• Neutral Sentiment: Investors are comparing PB’s valuation with Cullen/Frost Bankers. A Zacks analysis examines which Southwest bank offers the better value opportunity. PB trades at a relatively modest valuation, with a reported P/E ratio near 12.6, but the article’s impact depends on its comparative conclusion and may be limited without a new company-specific catalyst. PB versus CFR value analysis
• Negative Sentiment: Some future-quarter estimates were reduced. Zacks lowered its Q3 2027 EPS forecast to $1.81 from $1.85 and trimmed its Q2 2028 estimate to $1.92 from $1.93. The cuts are small, but they indicate that the earnings outlook is not uniformly improving. Prosperity Bancshares revised estimates
• Negative Sentiment: Director Ned S. Holmes sold 1,100 shares for approximately $81,000 across two transactions at prices around $73.64–$73.67. He retained a substantial position, so the sales are not necessarily a strong bearish signal, but insider selling can weigh modestly on sentiment. SEC insider transaction filing

Analyst Upgrades and Downgrades

PB has been the topic of a number of recent analyst reports. TD Cowen boosted their price target on Prosperity Bancshares from $82.00 to $84.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Citigroup raised their price objective on Prosperity Bancshares from $75.00 to $79.00 and gave the company a "neutral" rating in a research report on Friday, July 31st. Benchmark assumed coverage on Prosperity Bancshares in a research note on Wednesday, June 24th. They set a "hold" rating for the company. Morgan Stanley reissued an "equal weight" rating and set a $80.00 target price (down from $85.00) on shares of Prosperity Bancshares in a report on Monday, July 6th. Finally, Royal Bank Of Canada increased their price target on Prosperity Bancshares from $78.00 to $80.00 and gave the company a "sector perform" rating in a research note 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. Based on data from MarketBeat, Prosperity Bancshares presently has a consensus rating of "Hold" and an average target price of $78.36.

Insider Transactions at Prosperity Bancshares

In other Prosperity Bancshares news, Director Ned S. Holmes sold 500 shares of the company's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $73.64, for a total value of $36,820.00. Following the transaction, the director directly owned 70,615 shares of the company's stock, valued at $5,200,088.60. This represents a 0.70% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. In the last ninety days, insiders sold 12,100 shares of company stock valued at $872,923. Insiders own 3.96% of the company's stock.

Prosperity Bancshares Stock Up 0.4%

Prosperity Bancshares stock opened at $72.86 on Friday. The company's 50-day moving average price is $73.01 and its two-hundred day moving average price is $70.53. 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 stock has a market cap of $7.35 billion, a P/E ratio of 12.63, a P/E/G 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 quarterly earnings data on Wednesday, July 29th. The bank reported $1.62 earnings per share (EPS) for the quarter, topping 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 company had revenue of $369.18 million during the quarter, compared to analysts' expectations of $380.73 million. During the same quarter in the previous year, the company posted $1.42 earnings per share. The business's revenue was up 25.9% on a year-over-year basis. As a group, analysts expect that Prosperity Bancshares, Inc. will post 6.47 EPS for the current year.

Prosperity Bancshares Dividend Announcement

The company also recently declared 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. This represents a $2.40 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Tuesday, September 15th. Prosperity Bancshares's dividend payout ratio (DPR) is presently 41.59%.

Prosperity Bancshares Company 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.

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.

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