Hsbc Holdings PLC Takes $2.82 Million Position in Prosperity Bancshares, Inc. $PB

Key Points

• HSBC Holdings purchased 38,629 shares of Prosperity Bancshares in the second quarter, worth approximately $2.82 million. Institutional investors and hedge funds collectively own 80.69% of the company.
• 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.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $78.36. The company also declared a quarterly dividend of $0.60 per share, representing a 3.3% annualized yield.

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

Several other hedge funds have also added to or reduced their stakes in PB. Danske Bank A S acquired a new position in Prosperity Bancshares in the 3rd quarter valued at $40,000. SouthState Bank Corp acquired a new stake in shares of Prosperity Bancshares during the fourth quarter worth $49,000. Osaic Holdings Inc. lifted its holdings in shares of Prosperity Bancshares by 34.9% during the second quarter. Osaic Holdings Inc. now owns 719 shares of the bank's stock worth $51,000 after buying an additional 186 shares in the last quarter. Global Retirement Partners LLC acquired a new stake in shares of Prosperity Bancshares during the second quarter worth $54,000. Finally, Eurizon Capital SGR S.p.A. bought a new stake in shares of Prosperity Bancshares in the fourth quarter valued at about $55,000. 80.69% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, Director Ned S. Holmes sold 600 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $67.69, for a total value of $40,614.00. Following the completion of the transaction, the director directly owned 40,300 shares in the company, valued at approximately $2,727,907. The trade was a 1.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last 90 days, insiders have sold 12,100 shares of company stock valued at $877,186. 3.96% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms recently commented on PB. Citigroup upped their price target on shares of Prosperity Bancshares from $75.00 to $79.00 and gave the company a "neutral" rating in a research note on Friday, July 31st. Piper Sandler lifted their price objective on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. Cantor Fitzgerald reissued an "overweight" rating and issued a $80.00 price objective on shares of Prosperity Bancshares in a report on Tuesday, June 23rd. Weiss Ratings upgraded shares of Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, July 29th. Finally, TD Cowen raised their target price on shares of Prosperity Bancshares from $82.00 to $84.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Prosperity Bancshares presently has an average rating of "Hold" and an average price target of $78.36.

Prosperity Bancshares Stock Performance

PB opened at $72.35 on Monday. The firm has a market cap of $7.30 billion, a P/E ratio of 12.54, a price-to-earnings-growth ratio of 0.79 and a beta of 0.64. Prosperity Bancshares, Inc. has a 52-week low of $61.06 and a 52-week high of $77.20. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75. The business's fifty day moving average is $73.16 and its 200-day moving average is $70.52.

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 analysts' consensus estimates of $1.50 by $0.12. The company had revenue of $369.18 million for the quarter, compared to analysts' expectations of $380.73 million. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.Prosperity Bancshares's revenue was up 25.9% on a year-over-year basis. During the same quarter last year, the business earned $1.42 earnings per share. Sell-side analysts expect that Prosperity Bancshares, Inc. will post 6.47 EPS for the current fiscal year.

Prosperity Bancshares Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Tuesday, September 15th. Prosperity Bancshares's dividend payout ratio (DPR) is currently 41.59%.

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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