Dark Forest Capital Management LP Makes New $3.48 Million Investment in Prosperity Bancshares, Inc. $PB

Key Points

• Dark Forest Capital Management LP invested approximately $3.48 million in Prosperity Bancshares by acquiring 48,736 shares, representing about 0.05% of the company at the end of the reporting period.
• Institutional investors own 80.69% of the stock, with several including Hsbc Holdings and Northern Trust significantly increasing their stakes during the last quarter.
• Prosperity Bancshares announced a quarterly dividend of $0.58, contributing to an annualized dividend yield of 3.4%.

Dark Forest Capital Management LP purchased a new position in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 48,736 shares of the bank's stock, valued at approximately $3,478,000. Dark Forest Capital Management LP owned approximately 0.05% of Prosperity Bancshares at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of Prosperity Bancshares during the first quarter worth about $48,000. Fifth Third Bancorp grew its holdings in Prosperity Bancshares by 44.9% in the first quarter. Fifth Third Bancorp now owns 1,277 shares of the bank's stock valued at $91,000 after purchasing an additional 396 shares during the period. Quarry LP grew its holdings in Prosperity Bancshares by 16.7% in the first quarter. Quarry LP now owns 1,366 shares of the bank's stock valued at $97,000 after purchasing an additional 195 shares during the period. Chilton Capital Management LLC purchased a new stake in Prosperity Bancshares during the first quarter worth approximately $105,000. Finally, State of Wyoming grew its stake in Prosperity Bancshares by 13.8% during the first quarter. State of Wyoming now owns 2,565 shares of the bank's stock worth $183,000 after buying an additional 311 shares during the period. 80.69% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have issued reports on PB. Citigroup boosted their price objective on shares of Prosperity Bancshares from $76.00 to $78.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. Jefferies Financial Group began coverage on shares of Prosperity Bancshares in a research report on Wednesday, May 21st. They set a "buy" rating and a $85.00 target price on the stock. Hovde Group reduced their target price on shares of Prosperity Bancshares from $85.00 to $83.00 and set an "outperform" rating on the stock in a research report on Thursday, July 24th. Wall Street Zen raised shares of Prosperity Bancshares from a "sell" rating to a "hold" rating in a research report on Tuesday, May 13th. Finally, Piper Sandler reduced their target price on shares of Prosperity Bancshares from $86.00 to $84.00 and set an "overweight" rating on the stock in a research report on Thursday, July 24th. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $84.13.

Prosperity Bancshares Stock Down 1.3%

Shares of NYSE PB traded down $0.89 during trading on Friday, reaching $67.91. 1,482,717 shares of the stock were exchanged, compared to its average volume of 920,840. The business's 50-day moving average price is $69.66 and its 200 day moving average price is $69.85. Prosperity Bancshares, Inc. has a twelve month low of $61.57 and a twelve month high of $86.75. The company has a market capitalization of $6.45 billion, a price-to-earnings ratio of 12.35, a price-to-earnings-growth ratio of 1.02 and a beta of 0.74.

Prosperity Bancshares (NYSE:PB - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The bank reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.02. The firm had revenue of $310.70 million for the quarter, compared to analysts' expectations of $315.66 million. Prosperity Bancshares had a net margin of 29.37% and a return on equity of 6.99%. During the same period in the prior year, the company posted $1.22 earnings per share. As a group, sell-side analysts expect that Prosperity Bancshares, Inc. will post 5.83 earnings per share for the current fiscal year.

Prosperity Bancshares Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Monday, September 15th will be issued a $0.58 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $2.32 annualized dividend and a yield of 3.4%. Prosperity Bancshares's dividend payout ratio is currently 42.18%.

Insider Transactions at Prosperity Bancshares

In related news, Director Ned S. Holmes sold 500 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $68.74, for a total value of $34,370.00. Following the sale, the director directly owned 93,915 shares of the company's stock, valued at $6,455,717.10. This represents a 0.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have sold 15,400 shares of company stock valued at $1,072,938 over the last 90 days. Corporate insiders own 4.20% of the company's stock.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery.