Dimensional Fund Advisors LP Acquires 102,044 Shares of Prosperity Bancshares, Inc. $PB

Key Points

• Dimensional Fund Advisors LP increased its stake in Prosperity Bancshares by 2.2%, acquiring an additional 102,044 shares during the first quarter, holding approximately 4.92% of the company valued at $334.6 million.
• Several institutional investors, including Fifth Third Bancorp and PNC Financial Services Group Inc., have also modified their positions in Prosperity Bancshares, contributing to a total institutional ownership of 80.69%.
• Prosperity Bancshares announced a quarterly dividend of $0.58 per share, resulting in a 3.5% yield, with a pay date set for October 1st, indicating ongoing commitment to returning value to shareholders.

Dimensional Fund Advisors LP boosted its stake in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) by 2.2% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 4,688,304 shares of the bank's stock after acquiring an additional 102,044 shares during the period. Dimensional Fund Advisors LP owned about 4.92% of Prosperity Bancshares worth $334,595,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in PB. Quarry LP acquired a new stake in Prosperity Bancshares during the fourth quarter worth $88,000. Fifth Third Bancorp raised its position in Prosperity Bancshares by 44.9% in the 1st 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 last quarter. Chilton Capital Management LLC acquired a new stake in shares of Prosperity Bancshares during the first quarter worth $105,000. New England Research & Management Inc. purchased a new stake in Prosperity Bancshares in the 1st quarter valued at approximately $212,000. Finally, PNC Financial Services Group Inc. grew its position in Prosperity Bancshares by 9.2% during the first quarter. PNC Financial Services Group Inc. now owns 2,968 shares of the bank's stock worth $212,000 after buying an additional 249 shares during the period. 80.69% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on PB. Piper Sandler cut their price target on Prosperity Bancshares from $86.00 to $84.00 and set an "overweight" rating for the company in a report on Thursday, July 24th. Wall Street Zen upgraded shares of Prosperity Bancshares from a "sell" rating to a "hold" rating in a research note on Tuesday, May 13th. Jefferies Financial Group began coverage on Prosperity Bancshares in a research report on Wednesday, May 21st. They issued a "buy" rating and a $85.00 target price on the stock. Hovde Group lowered their target price on Prosperity Bancshares from $85.00 to $83.00 and set an "outperform" rating on the stock in a report on Thursday, July 24th. Finally, Keefe, Bruyette & Woods lowered their price target on shares of Prosperity Bancshares from $95.00 to $90.00 and set an "outperform" rating on the stock in a report on Monday, May 5th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, Prosperity Bancshares has a consensus rating of "Moderate Buy" and a consensus price target of $84.57.

Prosperity Bancshares Stock Performance

NYSE PB traded up $2.2350 during trading hours on Friday, reaching $69.6850. 196,077 shares of the company's stock were exchanged, compared to its average volume of 682,245. The company has a market capitalization of $6.62 billion, a price-to-earnings ratio of 12.70, a price-to-earnings-growth ratio of 1.02 and a beta of 0.71. The company's 50-day moving average is $69.53 and its two-hundred day moving average is $70.66. Prosperity Bancshares, Inc. has a one year low of $61.57 and a one year high of $86.75.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The bank reported $1.42 EPS for the quarter, beating the consensus estimate of $1.40 by $0.02. Prosperity Bancshares had a return on equity of 6.99% and a net margin of 29.37%.The firm had revenue of $310.70 million during the quarter, compared to analysts' expectations of $315.66 million. During the same period in the prior year, the firm posted $1.22 earnings per share. Research analysts predict that Prosperity Bancshares, Inc. will post 5.83 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 Wednesday, October 1st. Investors of record on Monday, September 15th will be paid a $0.58 dividend. This represents a $2.32 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend is Monday, September 15th. Prosperity Bancshares's dividend payout ratio (DPR) is 42.18%.

Insider Activity at Prosperity Bancshares

In related news, Director Ned S. Holmes sold 600 shares of the firm's stock in a transaction on Wednesday, May 28th. The stock was sold at an average price of $70.30, for a total transaction of $42,180.00. Following the sale, the director owned 45,600 shares of the company's stock, valued at $3,205,680. This trade represents a 1.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In the last three months, insiders sold 14,300 shares of company stock valued at $998,411. 4.20% of the stock is currently owned by corporate insiders.

About Prosperity Bancshares

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.