Sei Investments Co. Acquires 28,429 Shares of Prosperity Bancshares, Inc. $PB

Key Points

• Sei Investments increased its Prosperity Bancshares stake by 21.9% in the first quarter, adding 28,429 shares to own 157,954 shares valued at approximately $10.6 million. Institutional investors collectively own 80.69% of the bank.
• Prosperity Bancshares reported strong quarterly results, with adjusted EPS of $1.62 beating estimates and revenue rising 25.9% year over year to $391.25 million, helped by the Stellar Bancorp acquisition.
• Analysts raised several price targets, with the consensus target at $78.36 versus the stock’s $74.79 opening price. The company also declared a quarterly dividend of $0.60, representing a 3.2% annualized yield.

Sei Investments Co. raised its holdings in Prosperity Bancshares, Inc. (NYSE:PB - Free Report) by 21.9% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 157,954 shares of the bank's stock after acquiring an additional 28,429 shares during the quarter. Sei Investments Co. owned about 0.16% of Prosperity Bancshares worth $10,611,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in the business. Gator Capital Management LLC bought a new stake in Prosperity Bancshares in the fourth quarter worth $2,051,000. First National Bank of Omaha bought a new position in Prosperity Bancshares during the fourth quarter valued at about $6,390,000. Tudor Investment Corp ET AL bought a new position in Prosperity Bancshares during the third quarter valued at about $4,882,000. BW Gestao de Investimentos Ltda. acquired a new stake in shares of Prosperity Bancshares in the fourth quarter worth about $12,085,000. Finally, Algebris UK Ltd. boosted its stake in shares of Prosperity Bancshares by 67.8% during the 4th quarter. Algebris UK Ltd. now owns 892,489 shares of the bank's stock worth $61,709,000 after acquiring an additional 360,758 shares in the last quarter. 80.69% of the stock is owned by institutional investors.

Trending Headlines about Prosperity Bancshares

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Strong Q2 earnings and revenue growth: Prosperity Bancshares reported adjusted earnings of $1.62 per share, exceeding the $1.51 consensus estimate, while revenue rose 25.9% year over year to $391.26 million. Results benefited from contributions from the Stellar Bancorp acquisition and the absence of a credit-loss provision. PB's Q2 Earnings Beat Estimates as Revenues Rise, Stellar Deal Closed
• Positive Sentiment: Merger upside highlighted: Management’s earnings call emphasized the potential benefits of completing the Stellar Bancorp buyout, including increased scale and revenue contributions. Investors may view the integration as a source of additional earnings growth. Prosperity Bancshares Earnings Call Highlights Merger Upside
• Positive Sentiment: Price targets raised: Royal Bank of Canada increased its target from $78 to $80, while Piper Sandler raised its target from $75 to $80. Both targets indicate approximately 7% potential upside from the referenced trading level, although neither firm assigned a bullish rating.
• Neutral Sentiment: Dividend appeal: A recent analysis points to Prosperity Bancshares’ potential as a dividend stock, which could attract income-focused investors, though the article does not identify a new dividend increase or policy change. This is Why Prosperity Bancshares Is a Great Dividend Stock
• Negative Sentiment: Insider selling: Director Ned S. Holmes sold a combined 1,100 shares worth roughly $81,700. The sales reduced his holdings by less than 2.2% overall, making the signal relatively minor but modestly negative.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on PB shares. Royal Bank Of Canada increased their price objective on Prosperity Bancshares from $78.00 to $80.00 and gave the company a "sector perform" rating in a report on Thursday. Weiss Ratings upgraded Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $80.00 target price on shares of Prosperity Bancshares in a research report on Tuesday, June 23rd. Piper Sandler increased their price target on Prosperity Bancshares from $75.00 to $80.00 and gave the company a "neutral" rating in a report on Thursday. Finally, TD Cowen increased their price target on Prosperity Bancshares from $82.00 to $84.00 and gave the company a "buy" rating in a report on Friday. 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.com, the company presently has a consensus rating of "Hold" and a consensus price target of $78.36.

Prosperity Bancshares Stock Down 0.0%

PB stock opened at $74.79 on Friday. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.76. Prosperity Bancshares, Inc. has a 52-week low of $61.06 and a 52-week high of $77.20. The company has a 50-day moving average of $71.65 and a two-hundred day moving average of $70.28. The stock has a market capitalization of $7.54 billion, a price-to-earnings ratio of 12.96, a price-to-earnings-growth ratio of 1.18 and a beta of 0.63.

Prosperity Bancshares (NYSE:PB - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, topping analysts' consensus estimates of $1.50 by $0.12. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The business had revenue of $391.25 million for the quarter, compared to analyst estimates of $380.73 million. During the same period in the previous year, the company posted $1.42 earnings per share. The firm's revenue for the quarter was up 25.9% on a year-over-year basis. As a group, equities research analysts anticipate that Prosperity Bancshares, Inc. will post 6.37 EPS for the current year.

Prosperity Bancshares Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be issued a $0.60 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $2.40 dividend on an annualized basis and a yield of 3.2%. Prosperity Bancshares's dividend payout ratio (DPR) is 41.59%.

Insider Transactions at Prosperity Bancshares

In other Prosperity Bancshares news, Director Ned S. Holmes sold 500 shares of Prosperity Bancshares stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $74.25, for a total value of $37,125.00. Following the transaction, the director directly owned 72,115 shares of the company's stock, valued at $5,354,538.75. The trade was a 0.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Over the last quarter, insiders sold 12,100 shares of company stock valued at $854,426. Company insiders own 3.96% of the company's stock.

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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