Segment Wealth Management LLC Makes New $2.01 Million Investment in Prosperity Bancshares, Inc. $PB

Key Points

• Segment Wealth Management acquired 30,423 shares of Prosperity Bancshares during the third quarter, valued at approximately $2.01 million. Institutional investors collectively own 80.69% of the bank’s outstanding stock.
• Analysts maintain a consensus “Hold” rating, with a consensus price target of $77.55; recent firms lowered their targets to between $77 and $78.
• Prosperity Bancshares exceeded quarterly earnings and revenue estimates, reporting $1.62 EPS and $391.25 million in revenue. The company also raised its quarterly dividend from $0.60 to $0.64 per share, representing a 3.7% annualized yield.

Segment Wealth Management LLC bought a new position in Prosperity Bancshares, Inc. (NYSE:PB - Free Report) during the third quarter, according to its most recent 13F filing with the SEC. The fund bought 30,423 shares of the bank's stock, valued at approximately $2,014,000.

Other hedge funds have also recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Prosperity Bancshares in the second quarter worth about $746,776,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Prosperity Bancshares during the second quarter worth approximately $350,099,000. Algebris UK Ltd. purchased a new stake in Prosperity Bancshares during the second quarter valued at approximately $59,465,000. Bank of New York Mellon Corp purchased a new stake in Prosperity Bancshares during the second quarter valued at approximately $57,877,000. Finally, North Reef Capital Management LP raised its position in Prosperity Bancshares by 149.0% during the first quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank's stock valued at $74,427,000 after purchasing an additional 662,877 shares during the period. 80.69% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on PB shares. Wall Street Zen raised Prosperity Bancshares from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Cantor Fitzgerald cut their target price on Prosperity Bancshares from $85.00 to $78.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 14th. Royal Bank Of Canada decreased their price target on Prosperity Bancshares from $80.00 to $77.00 and set a "sector perform" rating on the stock in a report on Friday, October 9th. TD Cowen lowered their price target on Prosperity Bancshares from $84.00 to $78.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Finally, Weiss Ratings lowered shares of Prosperity Bancshares from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Prosperity Bancshares currently has a consensus rating of "Hold" and a consensus price target of $77.55.

Prosperity Bancshares Trading Up 0.4%

Shares of NYSE PB opened at $69.78 on Tuesday. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.01. The business has a fifty day simple moving average of $69.72 and a two-hundred day simple moving average of $70.36. The firm has a market cap of $7.04 billion, a PE ratio of 12.09, a price-to-earnings-growth ratio of 0.77 and a beta of 0.66. Prosperity Bancshares, Inc. has a twelve month low of $62.58 and a twelve month high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its earnings results 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. The company had revenue of $391.25 million for the quarter, compared to analysts' expectations of $380.73 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The firm's quarterly revenue was up 25.9% on a year-over-year basis. During the same period in the prior year, the business earned $1.42 EPS. Analysts expect that Prosperity Bancshares, Inc. will post 6.46 earnings per share for the current fiscal year.

Prosperity Bancshares Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.64 per share. 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 dividend yield of 3.7%. The ex-dividend date is Tuesday, December 15th. Prosperity Bancshares's payout ratio is 41.59%.

Insider Activity

In related news, Director Ned Holmes sold 600 shares of Prosperity Bancshares stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $74.26, for a total transaction of $44,556.00. Following the transaction, the director directly owned 39,500 shares of the company's stock, valued at $2,933,270. This trade represents a 1.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders have sold 13,800 shares of company stock worth $977,902 in the last 90 days. 3.96% of the stock is currently owned by company insiders.

Prosperity Bancshares Profile

Prosperity Bancshares, Inc is a regional bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides banking and financial services to individuals, businesses, and public entities.

Prosperity Bank offers deposit products, commercial and consumer lending, mortgage and real estate lending, treasury management, online and mobile banking, and other traditional banking services. Its lending activities include financing for commercial businesses, agriculture, residential and commercial real estate, and personal needs.

Founded in 1983, Prosperity Bancshares has expanded primarily through organic growth and the acquisition of community banks.

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