Hsbc Holdings PLC Makes New Investment in Prosperity Bancshares, Inc. $PB

Key Points

• HSBC Holdings initiated a position in Prosperity Bancshares during the second quarter, buying 38,629 shares valued at approximately $2.8 million. Institutional investors collectively own 80.69% of the bank.
• Prosperity Bancshares reported stronger-than-expected quarterly results, with EPS of $1.62 versus the $1.50 consensus estimate and revenue of $391.25 million. Revenue increased 25.9% year over year.
• Analysts maintain a consensus “Hold” rating with an average price target of $78.36, while the company declared a quarterly dividend of $0.60 per share, representing a 3.4% yield.

Hsbc Holdings PLC purchased a new position in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 38,629 shares of the bank's stock, valued at approximately $2,816,000.

Several other hedge funds have also recently modified their holdings of PB. BlackRock Inc. acquired a new stake in shares of Prosperity Bancshares during the second quarter worth $746,776,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Prosperity Bancshares in the 2nd quarter valued at $350,099,000. AQR Capital Management LLC increased its position in shares of Prosperity Bancshares by 175.1% in the 2nd quarter. AQR Capital Management LLC now owns 2,383,162 shares of the bank's stock valued at $167,393,000 after acquiring an additional 1,516,939 shares during the period. Algebris UK Ltd. acquired a new position in shares of Prosperity Bancshares in the 2nd quarter valued at $59,465,000. Finally, Bank of New York Mellon Corp purchased a new position in Prosperity Bancshares in the 2nd quarter worth $57,877,000. Institutional investors and hedge funds own 80.69% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on PB shares. Citigroup increased their price objective on Prosperity Bancshares from $75.00 to $79.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Weiss Ratings raised Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, July 29th. Wall Street Zen upgraded Prosperity Bancshares from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Piper Sandler increased their price target on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Finally, TD Cowen raised their price target on shares of Prosperity Bancshares from $82.00 to $84.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Five research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Prosperity Bancshares currently has a consensus rating of "Hold" and a consensus price target of $78.36.

Prosperity Bancshares Stock Down 0.2%

Prosperity Bancshares stock opened at $71.34 on Friday. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.75. The stock has a market capitalization of $7.19 billion, a PE ratio of 12.36, a price-to-earnings-growth ratio of 0.78 and a beta of 0.63. The business has a 50 day simple moving average of $73.02 and a 200-day simple moving average of $70.41. Prosperity Bancshares, Inc. has a 12 month low of $61.06 and a 12 month high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, topping the consensus estimate of $1.50 by $0.12. The company had revenue of $391.25 million during the quarter, compared to analyst estimates of $380.73 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The firm's revenue was up 25.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.42 EPS. On average, analysts anticipate that Prosperity Bancshares, Inc. will post 6.48 EPS for the current fiscal year.

Prosperity Bancshares Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 3.4%. The ex-dividend date is Tuesday, September 15th. Prosperity Bancshares's payout ratio is 41.59%.

Insider Buying and Selling

In other news, Director Ned Holmes sold 500 shares of the firm's stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $71.42, for a total value of $35,710.00. Following the transaction, the director owned 69,115 shares in the company, valued at $4,936,193.30. This trade represents a 0.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. In the last ninety days, insiders sold 12,100 shares of company stock worth $881,715. 3.96% of the stock is currently owned by insiders.

About Prosperity Bancshares

Prosperity Bancshares, Inc is a bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides banking and financial services to individuals, businesses and institutions.

Prosperity Bank offers a range of deposit products, including checking, savings and time deposit accounts, along with consumer, residential mortgage, commercial and real estate lending. Its services also include treasury management, cash management, online and mobile banking, wealth management and other financial solutions designed for personal and business customers.

Founded in 1983, Prosperity Bancshares has expanded through organic growth and acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.