California State Teachers Retirement System Grows Stock Holdings in Prosperity Bancshares, Inc. $PB

Key Points

• California State Teachers Retirement System increased its Prosperity Bancshares stake by 34.9% in the first quarter, bringing its holdings to 120,082 shares valued at approximately $8.1 million. Institutional investors collectively own 80.69% of the bank.
• Prosperity Bancshares beat quarterly expectations, reporting $1.62 in EPS versus the $1.50 consensus and $391.25 million in revenue, up 25.9% year over year. The company also declared a $0.60 quarterly dividend, representing a 3.2% annualized yield.
• Analysts maintain a consensus “Hold” rating with an average price target of $78.36, modestly above the stock’s reported $74.86 price. Shares have traded between $61.06 and $77.20 over the past year.

California State Teachers Retirement System grew its stake in Prosperity Bancshares, Inc. (NYSE:PB - Free Report) by 34.9% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 120,082 shares of the bank's stock after acquiring an additional 31,088 shares during the period. California State Teachers Retirement System owned 0.12% of Prosperity Bancshares worth $8,067,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Danske Bank A S purchased a new position in shares of Prosperity Bancshares during the third quarter valued at $40,000. SouthState Bank Corp purchased a new position in shares of Prosperity Bancshares in the 4th quarter valued at $49,000. Osaic Holdings Inc. grew its stake in Prosperity Bancshares by 34.9% in the second quarter. Osaic Holdings Inc. now owns 719 shares of the bank's stock valued at $51,000 after purchasing an additional 186 shares during the last quarter. Eurizon Capital SGR S.p.A. purchased a new position in shares of Prosperity Bancshares in the 4th quarter worth approximately $55,000. Finally, Group One Trading LLC bought a new position in shares of Prosperity Bancshares during the 4th quarter worth approximately $66,000. Institutional investors own 80.69% of the company's stock.

Prosperity Bancshares Trading Down 0.5%

Shares of Prosperity Bancshares stock opened at $74.86 on Wednesday. The firm has a 50-day simple moving average of $71.87 and a two-hundred day simple moving average of $70.32. 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, Inc. has a fifty-two week low of $61.06 and a fifty-two week high of $77.20. The company has a market cap of $7.55 billion, a P/E ratio of 12.97, a price-to-earnings-growth ratio of 0.82 and a beta of 0.64.

Prosperity Bancshares (NYSE:PB - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share for the quarter, beating 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 firm had revenue of $391.25 million during the quarter, compared to analyst estimates of $380.73 million. During the same quarter in the previous year, the business earned $1.42 EPS. Prosperity Bancshares's revenue for the quarter was up 25.9% compared to the same quarter last year. As a group, equities analysts predict that Prosperity Bancshares, Inc. will post 6.43 earnings per share for the current fiscal 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 issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 3.2%. The ex-dividend date is Tuesday, September 15th. Prosperity Bancshares's payout ratio is presently 41.59%.

Wall Street Analyst Weigh In

PB has been the topic of several research analyst reports. Wall Street Zen upgraded Prosperity Bancshares from a "sell" rating to a "hold" rating in a research note on Saturday. Morgan Stanley reaffirmed an "equal weight" rating and issued a $80.00 price objective (down from $85.00) on shares of Prosperity Bancshares in a research report on Monday, July 6th. Citigroup upped their price target on shares of Prosperity Bancshares from $75.00 to $79.00 and gave the company a "neutral" rating in a research note on Friday. 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. Finally, Weiss Ratings upgraded Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, July 29th. Five investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $78.36.

Insider Buying and Selling

In related news, Director Ned S. Holmes sold 500 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $74.25, for a total value of $37,125.00. Following the completion of the transaction, the director directly owned 72,115 shares of the company's stock, 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 Securities & Exchange Commission, which can be accessed through the SEC website. In the last ninety days, insiders sold 11,000 shares of company stock worth $777,177. 3.96% of the stock is currently owned by insiders.

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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