Gator Capital Management LLC Purchases New Shares in Prosperity Bancshares, Inc. $PB

Key Points

• Gator Capital Management disclosed a new position in Prosperity Bancshares, buying 29,681 shares worth about $2.05 million in the fourth quarter. Institutional ownership remains high, with hedge funds and other investors holding 80.69% of the stock.
• Prosperity Bancshares reported better-than-expected quarterly earnings of $1.50 per share on revenue of $367.62 million, both topping analyst estimates. Revenue rose 19.9% year over year, and analysts now expect full-year EPS of 6.27.
• The bank announced a $0.60 quarterly dividend, payable July 1, implying an annualized yield of about 3.3%. Shares recently traded around $72.64, and analyst sentiment is mixed with a consensus rating of Hold.

Gator Capital Management LLC purchased a new stake in Prosperity Bancshares, Inc. (NYSE:PB - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 29,681 shares of the bank's stock, valued at approximately $2,051,000.

Several other institutional investors and hedge funds have also modified their holdings of PB. Community Bank N.A. acquired a new position in shares of Prosperity Bancshares in the third quarter valued at about $29,000. Danske Bank A S bought a new position in shares of Prosperity Bancshares in the third quarter worth about $40,000. SouthState Bank Corp acquired a new stake in shares of Prosperity Bancshares in the 4th quarter valued at approximately $49,000. Osaic Holdings Inc. boosted its stake in shares of Prosperity Bancshares by 34.9% in the 2nd quarter. Osaic Holdings Inc. now owns 719 shares of the bank's stock valued at $51,000 after purchasing an additional 186 shares in the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in shares of Prosperity Bancshares in the 4th quarter valued at approximately $55,000. 80.69% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Prosperity Bancshares

In other news, Director Ned S. Holmes sold 500 shares of Prosperity Bancshares stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $71.35, for a total value of $35,675.00. Following the completion of the sale, the director owned 75,615 shares in the company, valued at $5,395,130.25. The trade was a 0.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. In the last three months, insiders have sold 14,300 shares of company stock valued at $978,402. Insiders own 3.96% of the company's stock.

Prosperity Bancshares Stock Up 1.5%

Prosperity Bancshares stock opened at $72.64 on Friday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.76 and a current ratio of 0.76. Prosperity Bancshares, Inc. has a 52-week low of $61.06 and a 52-week high of $77.20. The firm has a 50 day moving average price of $68.95 and a two-hundred day moving average price of $69.80. The firm has a market cap of $7.33 billion, a price-to-earnings ratio of 13.16, a PEG ratio of 1.10 and a beta of 0.64.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its earnings results on Wednesday, April 29th. The bank reported $1.50 EPS for the quarter, topping the consensus estimate of $1.41 by $0.09. Prosperity Bancshares had a return on equity of 7.20% and a net margin of 29.50%.The business had revenue of $367.62 million during the quarter, compared to analysts' expectations of $358.60 million. During the same quarter last year, the firm posted $1.37 earnings per share. The firm's revenue was up 19.9% on a year-over-year basis. Equities analysts predict that Prosperity Bancshares, Inc. will post 6.27 EPS for the current year.

Prosperity Bancshares Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th will be paid a $0.60 dividend. The ex-dividend date is Monday, June 15th. This represents a $2.40 annualized dividend and a dividend yield of 3.3%. Prosperity Bancshares's payout ratio is currently 43.48%.

Analyst Ratings Changes

PB has been the topic of a number of research analyst reports. Weiss Ratings downgraded shares of Prosperity Bancshares from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, May 11th. Citigroup raised their price target on shares of Prosperity Bancshares from $72.00 to $74.00 and gave the company a "neutral" rating in a research note on Monday, May 4th. Morgan Stanley reduced their price target on shares of Prosperity Bancshares from $91.00 to $83.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 31st. Wall Street Zen upgraded shares of Prosperity Bancshares from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Finally, TD Cowen raised their price target on shares of Prosperity Bancshares from $77.00 to $79.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Five equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Prosperity Bancshares currently has a consensus rating of "Hold" and an average target price of $76.82.

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.

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