Palisade Capital Management LP Acquires Shares of 217,770 Prosperity Bancshares, Inc. $PB

Key Points

• Palisade Capital Management acquired 217,770 shares of Prosperity Bancshares, valued at approximately $15.9 million, giving it a 0.22% stake. Institutional investors collectively own 80.69% of the bank.
• Analysts maintain a generally cautious outlook, with five Buy, eight Hold and one Sell rating; the consensus is Hold with an average price target of $78.36.
• Prosperity Bancshares reported quarterly EPS of $1.62, beating estimates of $1.50, while revenue rose 25.9% year over year. The company also declared a quarterly dividend of $0.60 per share, implying a 3.3% annual yield.

Palisade Capital Management LP bought a new stake in Prosperity Bancshares, Inc. (NYSE:PB - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 217,770 shares of the bank's stock, valued at approximately $15,904,000. Palisade Capital Management LP owned 0.22% of Prosperity Bancshares as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Sepio Capital LP lifted its stake in Prosperity Bancshares by 2.4% in the 4th quarter. Sepio Capital LP now owns 5,701 shares of the bank's stock valued at $394,000 after buying an additional 133 shares in the last quarter. Commonwealth Equity Services LLC raised its holdings in shares of Prosperity Bancshares by 1.0% during the fourth quarter. Commonwealth Equity Services LLC now owns 14,324 shares of the bank's stock valued at $990,000 after acquiring an additional 145 shares during the last quarter. Osaic Holdings Inc. lifted its position in shares of Prosperity Bancshares by 34.9% in the second quarter. Osaic Holdings Inc. now owns 719 shares of the bank's stock valued at $51,000 after acquiring an additional 186 shares in the last quarter. Earned Wealth Advisors LLC boosted its stake in shares of Prosperity Bancshares by 6.2% in the first quarter. Earned Wealth Advisors LLC now owns 3,639 shares of the bank's stock worth $244,000 after acquiring an additional 213 shares during the last quarter. Finally, Public Employees Retirement System of Ohio boosted its stake in shares of Prosperity Bancshares by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 39,655 shares of the bank's stock worth $2,631,000 after acquiring an additional 228 shares during the last quarter. Hedge funds and other institutional investors own 80.69% of the company's stock.

Analyst Ratings Changes

A number of research analysts have weighed in on PB shares. Citigroup raised 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. TD Cowen upped 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. Benchmark initiated coverage on shares of Prosperity Bancshares in a research report on Wednesday, June 24th. They issued a "hold" rating for the company. Wall Street Zen upgraded shares of Prosperity Bancshares from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Royal Bank Of Canada raised their price target on shares of Prosperity Bancshares from $78.00 to $80.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 30th. Five analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $78.36.

Insider Activity at Prosperity Bancshares

In other Prosperity Bancshares news, Director Ned S. Holmes sold 500 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $73.64, for a total transaction of $36,820.00. Following the completion of the sale, the director owned 70,615 shares of the company's stock, valued at $5,200,088.60. This trade represents a 0.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last 90 days, insiders have sold 11,000 shares of company stock worth $796,683. 3.96% of the stock is currently owned by insiders.

Prosperity Bancshares Trading Down 0.3%

Shares of PB opened at $72.56 on Wednesday. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.01. Prosperity Bancshares, Inc. has a 12-month low of $61.06 and a 12-month high of $77.20. The firm has a 50-day moving average price of $73.06 and a 200 day moving average price of $70.55. The firm has a market capitalization of $7.32 billion, a P/E ratio of 12.58, a P/E/G ratio of 0.79 and a beta of 0.64.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The bank reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.12. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The firm had revenue of $369.18 million during the quarter, compared to analysts' expectations of $380.73 million. During the same period last year, the business earned $1.42 earnings per share. Prosperity Bancshares's revenue was up 25.9% compared to the same quarter last year. Sell-side analysts forecast that Prosperity Bancshares, Inc. will post 6.47 EPS for the current year.

Prosperity Bancshares Dividend Announcement

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

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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