First National Bank of Omaha Acquires Shares of 167,875 Prosperity Bancshares, Inc. $PB

Key Points

• First National Bank of Omaha acquired 167,875 Prosperity Bancshares shares worth approximately $12.3 million, representing about 0.17% of the company. Institutional investors collectively own 80.69% of PB.
• Prosperity Bancshares exceeded quarterly earnings expectations, reporting $1.62 in EPS versus the $1.50 consensus estimate, while revenue rose 25.9% year over year to $369.18 million.
• The company declared a quarterly dividend of $0.60 per share, equivalent to $2.40 annually and a 3.2% yield. Analysts maintain a consensus “Hold” rating with an average price target of $78.36.

First National Bank of Omaha bought a new stake in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 167,875 shares of the bank's stock, valued at approximately $12,316,000. First National Bank of Omaha owned about 0.17% of Prosperity Bancshares at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in PB. Gator Capital Management LLC bought a new position in shares of Prosperity Bancshares during the 4th quarter valued at approximately $2,051,000. Bull Harbor Capital LLC bought a new stake in shares of Prosperity Bancshares in the 1st quarter worth approximately $1,019,000. SummitTX Capital L.P. purchased a new position in Prosperity Bancshares in the first quarter valued at approximately $3,878,000. BW Gestao de Investimentos Ltda. purchased a new position in Prosperity Bancshares in the fourth quarter valued at approximately $12,085,000. Finally, Edgestream Partners L.P. bought a new position in Prosperity Bancshares during the first quarter valued at $2,006,000. 80.69% of the stock is currently owned by institutional investors.

Insider Activity

In related news, Director Ned S. Holmes sold 500 shares of Prosperity Bancshares stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $74.14, for a total transaction of $37,070.00. Following the completion of the sale, the director owned 71,115 shares of the company's stock, valued at approximately $5,272,466.10. This trade represents a 0.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders sold a total of 11,000 shares of company stock valued at $791,901 in the last quarter. Company insiders own 3.96% of the company's stock.

Prosperity Bancshares Stock Performance

Prosperity Bancshares stock opened at $74.35 on Wednesday. The firm's 50 day simple moving average is $72.94 and its 200 day simple moving average is $70.46. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $7.50 billion, a PE ratio of 12.89, a price-to-earnings-growth ratio of 0.82 and a beta of 0.64. Prosperity Bancshares, Inc. has a 1-year low of $61.06 and a 1-year high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, beating the consensus estimate of $1.50 by $0.12. The firm had revenue of $369.18 million during the quarter, compared to the consensus estimate of $380.73 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The business's quarterly revenue was up 25.9% compared to the same quarter last year. During the same period last year, the firm earned $1.42 EPS. As a group, analysts expect that Prosperity Bancshares, Inc. will post 6.45 earnings per share for the current fiscal year.

Prosperity Bancshares Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Tuesday, September 15th. Prosperity Bancshares's dividend payout ratio (DPR) is 41.59%.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on PB shares. Benchmark initiated coverage on Prosperity Bancshares in a research report on Wednesday, June 24th. They issued a "hold" rating for the company. Morgan Stanley reiterated an "equal weight" rating and set a $80.00 price target (down from $85.00) on shares of Prosperity Bancshares in a research note on Monday, July 6th. Royal Bank Of Canada lifted their price objective on Prosperity Bancshares from $78.00 to $80.00 and gave the stock a "sector perform" rating in a report on Thursday, July 30th. Piper Sandler boosted their price objective on Prosperity Bancshares from $75.00 to $80.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Finally, Citigroup upped their price objective on shares of Prosperity Bancshares from $75.00 to $79.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Five equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $78.36.

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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