Prosperity Bancshares, Inc. $PB Shares Acquired by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its stake in Prosperity Bancshares by 10.4% in the first quarter, buying an additional 21,156 shares and bringing its total holdings to 225,401 shares worth about $15.1 million.
• Prosperity Bancshares beat Wall Street expectations in its latest quarter, reporting EPS of $1.50 versus the $1.41 estimate and revenue of $367.6 million, up 19.9% year over year.
• The company also announced a quarterly dividend of $0.60 per share, payable October 1, which equals a 3.3% annualized yield. Analysts currently rate the stock a consensus Hold with an average price target of $76.36.

Principal Financial Group Inc. lifted its holdings in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) by 10.4% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 225,401 shares of the bank's stock after acquiring an additional 21,156 shares during the period. Principal Financial Group Inc. owned approximately 0.22% of Prosperity Bancshares worth $15,142,000 at the end of the most recent quarter.

Several other hedge funds have also recently modified their holdings of PB. Chicago Partners Investment Group LLC raised its position in shares of Prosperity Bancshares by 128.3% in the 1st quarter. Chicago Partners Investment Group LLC now owns 9,709 shares of the bank's stock valued at $677,000 after purchasing an additional 5,457 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its stake in Prosperity Bancshares by 6.5% in the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 25,317 shares of the bank's stock worth $1,701,000 after purchasing an additional 1,546 shares in the last quarter. Citizens Financial Group Inc. RI purchased a new stake in Prosperity Bancshares during the 1st quarter worth approximately $373,000. Fifth Third Bancorp grew its position in Prosperity Bancshares by 3,881.2% during the 1st quarter. Fifth Third Bancorp now owns 40,449 shares of the bank's stock worth $2,717,000 after purchasing an additional 39,433 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund increased its stake in Prosperity Bancshares by 9.5% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 20,732 shares of the bank's stock valued at $1,393,000 after purchasing an additional 1,800 shares in the last quarter. Institutional investors and hedge funds own 80.69% of the company's stock.

Insider Buying and Selling at Prosperity Bancshares

In other news, Director Ned S. Holmes sold 600 shares of the business's stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $69.62, for a total value of $41,772.00. Following the completion of the transaction, the director owned 40,800 shares of the company's stock, valued at $2,840,496. The trade was a 1.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In the last ninety days, insiders sold 12,100 shares of company stock worth $849,312. Company insiders own 3.96% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on PB. Piper Sandler raised their price target on shares of Prosperity Bancshares from $74.00 to $75.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. Benchmark assumed coverage on shares of Prosperity Bancshares in a report on Wednesday, June 24th. They set a "hold" rating on the stock. Morgan Stanley reissued an "equal weight" rating and issued a $80.00 target price (down from $85.00) on shares of Prosperity Bancshares in a research report on Monday, July 6th. Wall Street Zen upgraded Prosperity Bancshares from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and set a $80.00 price target on shares of Prosperity Bancshares in a research report on Tuesday, June 23rd. Five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $76.36.

Prosperity Bancshares Stock Performance

PB opened at $72.63 on Friday. Prosperity Bancshares, Inc. has a 12-month low of $61.06 and a 12-month high of $77.20. The company has a current ratio of 0.76, a quick ratio of 0.76 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $7.33 billion, a PE ratio of 13.16, a P/E/G ratio of 1.17 and a beta of 0.63. The firm has a 50 day moving average of $70.98 and a two-hundred day moving average of $70.16.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The bank reported $1.50 earnings per share for the quarter, topping analysts' consensus estimates of $1.41 by $0.09. The firm had revenue of $367.62 million for the quarter, compared to analyst estimates of $358.60 million. Prosperity Bancshares had a net margin of 29.50% and a return on equity of 7.20%. The business's quarterly revenue was up 19.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.37 earnings per share. On average, analysts anticipate that Prosperity Bancshares, Inc. will post 6.25 EPS for the current year.

Prosperity Bancshares Dividend Announcement

The business 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. 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 presently 43.48%.

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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