Insider Selling: Prosperity Bancshares (NYSE:PB) Director Sells 600 Shares of Company Stock

Key Points

• Director insider sale: Ned Holmes sold 600 Prosperity Bancshares shares for approximately $41,988, reducing his direct ownership by 1.55% to 38,200 shares.
• Strong quarterly performance: Prosperity Bancshares reported $1.67 in EPS and $495.7 million in revenue, exceeding analyst estimates, while revenue increased 56% year over year.
• Dividend increase: The company raised its quarterly dividend from $0.60 to $0.64 per share, implying a $2.56 annualized payout and a 3.6% yield.

Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) Director Ned Holmes sold 600 shares of the firm's stock in a transaction dated Wednesday, October 28th. The shares were sold at an average price of $69.98, for a total value of $41,988.00. Following the sale, the director directly owned 38,200 shares in the company, valued at approximately $2,673,236. The trade was a 1.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Prosperity Bancshares Stock Up 1.9%

PB traded up $1.32 on Wednesday, hitting $70.96. The company had a trading volume of 1,726,121 shares, compared to its average volume of 1,105,330. The stock has a fifty day moving average price of $69.62 and a 200-day moving average price of $70.35. Prosperity Bancshares, Inc. has a 12-month low of $62.58 and a 12-month high of $77.20. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75. The stock has a market capitalization of $7.16 billion, a price-to-earnings ratio of 12.30, a P/E/G ratio of 0.77 and a beta of 0.66.

Prosperity Bancshares (NYSE:PB - Get Free Report) last announced its earnings results on Wednesday, October 28th. The bank reported $1.67 EPS for the quarter, topping analysts' consensus estimates of $1.35 by $0.32. The business had revenue of $495.70 million during the quarter, compared to the consensus estimate of $491.49 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The firm's revenue was up 56.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.45 earnings per share. Analysts predict that Prosperity Bancshares, Inc. will post 6.46 EPS for the current fiscal year.

Prosperity Bancshares Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Investors 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. The ex-dividend date is Tuesday, December 15th. This represents a $2.56 annualized dividend and a dividend yield of 3.6%. Prosperity Bancshares's dividend payout ratio (DPR) is presently 41.59%.

Key Stories Impacting Prosperity Bancshares

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

• Positive Sentiment: Merger-driven growth and stronger banking fundamentals: Third-quarter assets reached $54.1 billion, while loans increased 28.1% and deposits rose 26.5%. Net interest income climbed 62% year over year to $443.0 million, and the net interest margin improved to 3.73%, up 26 basis points from the second quarter. Prosperity Bancshares Third Quarter 2026 Earnings
• Positive Sentiment: Adjusted earnings exceeded expectations: Prosperity reported adjusted diluted EPS of $1.67, above the $1.63 Zacks consensus and well ahead of $1.45 a year earlier. Revenue of $495.7 million was also slightly above estimates, supporting the view that the Stellar combination is adding earnings power. Prosperity Bancshares Q3 Earnings Beat Estimates
• Positive Sentiment: Capital returns remain supportive: The board raised the quarterly dividend by $0.04, or 6.67%, to $0.64 per share—its 23rd consecutive annual increase. PB also repurchased approximately 457,000 shares during the quarter and 1.5 million shares year to date. Prosperity Bancshares Dividend and Buyback Update
• Neutral Sentiment: Credit quality bears monitoring: The company reported third-quarter net charge-offs, while nonperforming assets remained relatively low at 0.41% of average interest-earning assets and its loan-loss allowance totaled $629.6 million. Prosperity Bancshares Net Charge-Offs
• Negative Sentiment: GAAP results were weighed down by integration costs: Net income was $141.5 million, or $1.18 per diluted share, compared with $137.6 million and $1.45 per share a year earlier. Merger-related expenses totaled $69.7 million, creating a gap between reported and adjusted profitability. Recent insider selling may also temper sentiment. Prosperity Bancshares Q3 Sales and Profit Report

Institutional Investors Weigh In On Prosperity Bancshares

A number of large investors have recently modified their holdings of the business. VIRGINIA RETIREMENT SYSTEMS ET Al raised its position in shares of Prosperity Bancshares by 63.1% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 10,600 shares of the bank's stock valued at $702,000 after purchasing an additional 4,100 shares during the last quarter. Parcion Private Wealth LLC grew its position in Prosperity Bancshares by 7.8% during the 3rd quarter. Parcion Private Wealth LLC now owns 7,849 shares of the bank's stock worth $520,000 after purchasing an additional 571 shares during the last quarter. Soltis Investment Advisors LLC grew its position in Prosperity Bancshares by 4.4% during the 3rd quarter. Soltis Investment Advisors LLC now owns 3,617 shares of the bank's stock worth $239,000 after purchasing an additional 151 shares during the last quarter. North Dakota State Investment Board grew its position in Prosperity Bancshares by 26.6% during the 3rd quarter. North Dakota State Investment Board now owns 3,524 shares of the bank's stock worth $233,000 after purchasing an additional 740 shares during the last quarter. Finally, MADDEN SECURITIES Corp acquired a new position in Prosperity Bancshares during the 3rd quarter valued at approximately $67,000. Hedge funds and other institutional investors own 80.69% of the company's stock.

Analyst Ratings Changes

PB has been the subject of several recent analyst reports. Piper Sandler raised their target price on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Citigroup reduced their price target on Prosperity Bancshares from $79.00 to $77.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 22nd. TD Cowen reduced their price target on Prosperity Bancshares from $84.00 to $78.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. Weiss Ratings lowered Prosperity Bancshares from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday. Finally, Royal Bank Of Canada lowered their price objective on Prosperity Bancshares from $80.00 to $77.00 and set a "sector perform" rating for the company in a research report on Friday, October 9th. Six investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $77.55.

Prosperity Bancshares Company 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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