Vaughan Nelson Investment Management L.P. Increases Holdings in Prosperity Bancshares, Inc. $PB

Key Points

• Vaughan Nelson Investment Management L.P. increased its holdings in Prosperity Bancshares by 14.1% in the second quarter, totaling 1,269,634 shares valued at approximately $89 million.
• Several hedge funds and institutional investors have also raised their stakes in Prosperity Bancshares, with over 80.69% of the company's stock now owned by these entities.
• The bank reported earnings of $1.42 per share in its most recent quarter, slightly exceeding analyst expectations, amid a dividend payment that yields 3.5%.

Vaughan Nelson Investment Management L.P. grew its position in shares of Prosperity Bancshares, Inc. (NYSE:PB - Free Report) by 14.1% during the second quarter, according to its most recent filing with the SEC. The firm owned 1,269,634 shares of the bank's stock after acquiring an additional 157,060 shares during the period. Vaughan Nelson Investment Management L.P. owned about 1.33% of Prosperity Bancshares worth $89,179,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Prosperity Bancshares by 8.2% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 7,362 shares of the bank's stock worth $525,000 after acquiring an additional 561 shares during the period. Principal Financial Group Inc. grew its holdings in shares of Prosperity Bancshares by 0.4% during the 1st quarter. Principal Financial Group Inc. now owns 219,056 shares of the bank's stock worth $15,634,000 after acquiring an additional 855 shares during the period. Envestnet Asset Management Inc. grew its holdings in shares of Prosperity Bancshares by 1.8% during the 1st quarter. Envestnet Asset Management Inc. now owns 58,236 shares of the bank's stock worth $4,156,000 after acquiring an additional 1,016 shares during the period. Amundi purchased a new position in shares of Prosperity Bancshares during the 1st quarter worth approximately $4,060,000. Finally, Teacher Retirement System of Texas grew its holdings in shares of Prosperity Bancshares by 23.1% during the 1st quarter. Teacher Retirement System of Texas now owns 21,818 shares of the bank's stock worth $1,557,000 after acquiring an additional 4,098 shares during the period. Hedge funds and other institutional investors own 80.69% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on PB. Hovde Group reduced their target price on Prosperity Bancshares from $85.00 to $83.00 and set an "outperform" rating on the stock in a report on Thursday, July 24th. TD Cowen began coverage on Prosperity Bancshares in a research report on Thursday, September 25th. They issued a "buy" rating and a $79.00 price target on the stock. Citigroup reissued a "neutral" rating and issued a $68.00 price target (down from $78.00) on shares of Prosperity Bancshares in a research report on Monday, September 15th. Weiss Ratings reissued a "hold (c)" rating on shares of Prosperity Bancshares in a research report on Saturday, September 27th. Finally, Cowen began coverage on Prosperity Bancshares in a research report on Wednesday, September 24th. They issued a "buy" rating on the stock. Twelve analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $83.13.

Prosperity Bancshares Trading Up 0.4%

PB stock opened at $65.81 on Friday. The stock has a market capitalization of $6.25 billion, a PE ratio of 11.97, a price-to-earnings-growth ratio of 0.98 and a beta of 0.73. Prosperity Bancshares, Inc. has a 12-month low of $61.57 and a 12-month high of $86.75. The stock's 50 day simple moving average is $67.16 and its 200 day simple moving average is $68.86.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its quarterly earnings data on Wednesday, July 23rd. The bank reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.02. The business had revenue of $310.70 million for the quarter, compared to analysts' expectations of $315.66 million. Prosperity Bancshares had a return on equity of 6.99% and a net margin of 29.37%.During the same period in the prior year, the firm posted $1.22 EPS. On average, research analysts predict that Prosperity Bancshares, Inc. will post 5.83 earnings per share for the current year.

Prosperity Bancshares Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Monday, September 15th were given a $0.58 dividend. The ex-dividend date of this dividend was Monday, September 15th. This represents a $2.32 annualized dividend and a yield of 3.5%. Prosperity Bancshares's dividend payout ratio is 42.18%.

Insider Transactions at Prosperity Bancshares

In related news, Director Ned S. Holmes sold 600 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $72.04, for a total value of $43,224.00. Following the transaction, the director directly owned 44,900 shares of the company's stock, valued at approximately $3,234,596. This represents a 1.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders sold 15,400 shares of company stock valued at $1,056,226. Corporate insiders own 4.20% of the company's stock.

About Prosperity Bancshares

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery.

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