King Luther Capital Management Corp Acquires 317,255 Shares of Prosperity Bancshares, Inc. $PB

Key Points

• King Luther Capital Management increased its Prosperity Bancshares stake by 259.9% in the third quarter, adding 317,255 shares to reach 439,334 shares, valued at about $29.1 million.
• Prosperity Bancshares reported quarterly EPS of $1.67, beating the $1.35 consensus estimate; revenue rose 56% year over year to $495.7 million.
• The company raised its quarterly dividend from $0.60 to $0.64 per share. Analysts’ consensus rating was “Hold,” with an average price target of $78.36.

King Luther Capital Management Corp boosted its holdings in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) by 259.9% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 439,334 shares of the bank's stock after buying an additional 317,255 shares during the quarter. King Luther Capital Management Corp owned 0.44% of Prosperity Bancshares worth $29,088,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. New Mexico Educational Retirement Board grew its stake in shares of Prosperity Bancshares by 31.6% in the third quarter. New Mexico Educational Retirement Board now owns 24,600 shares of the bank's stock worth $1,629,000 after acquiring an additional 5,900 shares in the last quarter. Ritholtz Wealth Management raised its stake in shares of Prosperity Bancshares by 6.7% in the third quarter. Ritholtz Wealth Management now owns 5,958 shares of the bank's stock valued at $394,000 after acquiring an additional 373 shares in the last quarter. Machina Capital S.A.S. acquired a new stake in shares of Prosperity Bancshares in the third quarter valued at $628,000. Lido Advisors LLC raised its stake in shares of Prosperity Bancshares by 3.3% in the third quarter. Lido Advisors LLC now owns 73,969 shares of the bank's stock valued at $4,897,000 after acquiring an additional 2,365 shares in the last quarter. Finally, AlphaCore Capital LLC boosted its holdings in Prosperity Bancshares by 19.8% in the third quarter. AlphaCore Capital LLC now owns 12,097 shares of the bank's stock valued at $807,000 after purchasing an additional 1,998 shares during the period. Hedge funds and other institutional investors own 80.69% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently commented on PB shares. Stonex Financial raised Prosperity Bancshares from a "hold" rating to a "strong-buy" rating in a research note on Thursday, October 29th. Wall Street Zen upgraded Prosperity Bancshares from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Raymond James Financial raised Prosperity Bancshares from a "market perform" rating to an "outperform" rating and set a $78.00 price target on the stock in a research report on Tuesday, October 6th. Keefe, Bruyette & Woods reiterated an "outperform" rating on shares of Prosperity Bancshares in a research note on Thursday, October 29th. Finally, Royal Bank Of Canada lifted their price objective on Prosperity Bancshares from $77.00 to $79.00 and gave the company a "sector perform" rating in a research note on Thursday, October 29th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Prosperity Bancshares presently has a consensus rating of "Hold" and an average target price of $78.36.

Insiders Place Their Bets

In other Prosperity Bancshares news, Director Ned Holmes sold 600 shares of Prosperity Bancshares stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $74.04, for a total transaction of $44,424.00. Following the completion of the sale, the director directly owned 38,100 shares of the company's stock, valued at $2,820,924. The trade was a 1.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders sold 12,245 shares of company stock valued at $857,390 in the last 90 days. 3.96% of the stock is owned by company insiders.

Prosperity Bancshares Trading Down 0.0%

Shares of NYSE:PB opened at $73.12 on Thursday. Prosperity Bancshares, Inc. has a 52 week low of $63.20 and a 52 week high of $77.20. The company's 50 day moving average is $69.63 and its two-hundred day moving average is $70.36. The company has a market cap of $7.37 billion, a PE ratio of 13.29, a P/E/G ratio of 0.85 and a beta of 0.64. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 0.01.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The bank reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.35 by $0.32. The business had revenue of $495.70 million during the quarter, compared to analysts' expectations of $491.49 million. Prosperity Bancshares had a net margin of 26.99% and a return on equity of 7.68%. The company's revenue for the quarter was up 56.0% on a year-over-year basis. During the same period in the previous year, the company earned $1.45 EPS. Equities analysts predict that Prosperity Bancshares, Inc. will post 6.47 earnings per share for the current fiscal year.

Prosperity Bancshares Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Shareholders of record on Tuesday, December 15th will be paid a $0.64 dividend. This is a boost from Prosperity Bancshares's previous quarterly dividend of $0.60. This represents a $2.56 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Tuesday, December 15th. Prosperity Bancshares's payout ratio is 46.55%.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc. is a bank holding company whose principal subsidiary is Prosperity Bank. The company provides commercial and consumer banking services, including deposit accounts, business and personal loans, mortgage lending, and cash management services. Founded in 1983 as a community bank in Edna, Texas, Prosperity has expanded through organic growth and acquisitions. It serves customers across Texas and Oklahoma, with a presence in communities including Houston, Dallas–Fort Worth, Austin, San Antonio, and Tulsa.

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