Natixis Advisors LLC Raises Stock Holdings in Prosperity Bancshares, Inc. $PB

Key Points

• Natixis Advisors LLC raised its stake in Prosperity Bancshares by 7.3% in Q3 to 260,013 shares (≈0.27% of the company) worth $17.25M, and institutional investors now own about 80.69% of the stock with large additions from AQR, American Century and Vanguard.
• Prosperity declared a quarterly dividend of $0.60 per share (annualized $2.40) implying a 3.6% yield, with an ex-dividend date of March 13 and payment on April 1; the payout ratio is roughly 41.9%.
• The bank reported Q results with EPS of $1.46 (beating by $0.01) while revenue fell 5.9% YoY and missed estimates; the shares trade at a PE of 11.49 with a $6.69B market cap and a consensus analyst rating of Hold (average target $78.92).

Natixis Advisors LLC boosted its position in Prosperity Bancshares, Inc. (NYSE:PB - Free Report) by 7.3% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 260,013 shares of the bank's stock after purchasing an additional 17,633 shares during the quarter. Natixis Advisors LLC owned approximately 0.27% of Prosperity Bancshares worth $17,251,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. AQR Capital Management LLC grew 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 worth $167,393,000 after buying an additional 1,516,939 shares during the period. American Century Companies Inc. increased its stake in shares of Prosperity Bancshares by 4,674.9% in the 2nd quarter. American Century Companies Inc. now owns 1,426,917 shares of the bank's stock worth $100,227,000 after acquiring an additional 1,397,033 shares in the last quarter. Norges Bank purchased a new position in Prosperity Bancshares during the 2nd quarter valued at about $53,398,000. Vanguard Group Inc. lifted its position in Prosperity Bancshares by 4.8% during the 3rd quarter. Vanguard Group Inc. now owns 10,116,892 shares of the bank's stock valued at $671,256,000 after acquiring an additional 465,227 shares during the period. Finally, Algebris UK Ltd. boosted its stake in Prosperity Bancshares by 128.5% during the third quarter. Algebris UK Ltd. now owns 531,731 shares of the bank's stock worth $35,253,000 after acquiring an additional 299,064 shares in the last quarter. Hedge funds and other institutional investors own 80.69% of the company's stock.

Prosperity Bancshares Stock Performance

Shares of Prosperity Bancshares stock opened at $65.82 on Thursday. The company has a 50-day simple moving average of $71.51 and a two-hundred day simple moving average of $68.90. The stock has a market capitalization of $6.69 billion, a PE ratio of 11.49, a price-to-earnings-growth ratio of 0.94 and a beta of 0.66. Prosperity Bancshares, Inc. has a 52-week low of $61.06 and a 52-week high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The bank reported $1.46 EPS for the quarter, beating analysts' consensus estimates of $1.45 by $0.01. The firm had revenue of $317.73 million for the quarter, compared to analysts' expectations of $319.30 million. Prosperity Bancshares had a net margin of 31.22% and a return on equity of 7.11%. The business's revenue for the quarter was down 5.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.37 earnings per share. As a group, equities research analysts forecast that Prosperity Bancshares, Inc. will post 5.83 EPS for the current fiscal year.

Prosperity Bancshares Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 3.6%. The ex-dividend date is Friday, March 13th. Prosperity Bancshares's dividend payout ratio (DPR) is currently 41.88%.

Insider Buying and Selling

In other Prosperity Bancshares news, Director Ned S. Holmes sold 500 shares of Prosperity Bancshares stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $66.00, for a total value of $33,000.00. Following the completion of the sale, the director owned 80,415 shares of the company's stock, valued at approximately $5,307,390. This trade represents a 0.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last quarter, insiders sold 13,200 shares of company stock worth $936,078. Company insiders own 4.20% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on PB shares. Cantor Fitzgerald upped their price objective on shares of Prosperity Bancshares from $81.00 to $83.00 and gave the stock an "overweight" rating in a report on Tuesday, March 3rd. Barclays cut Prosperity Bancshares from an "equal weight" rating to an "underweight" rating and dropped their price target for the stock from $75.00 to $68.00 in a research report on Monday, February 2nd. Citigroup restated a "neutral" rating on shares of Prosperity Bancshares in a research note on Monday, February 2nd. Morgan Stanley raised their price objective on Prosperity Bancshares from $80.00 to $91.00 and gave the company an "overweight" rating in a research report on Monday, March 2nd. Finally, Piper Sandler cut Prosperity Bancshares from an "overweight" rating to a "neutral" rating and lowered their price objective for the company from $77.00 to $74.00 in a research note on Thursday, January 29th. Seven analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Prosperity Bancshares currently has a consensus rating of "Hold" and an average target price of $78.92.

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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