Prosperity Bancshares, Inc. (NYSE:PB) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analyst sentiment is mixed but leans cautious: Prosperity Bancshares has an average rating of “Hold” from 13 analysts, with 7 holds, 5 buys, and 1 sell. The consensus 12-month price target is about $76.82.
• Recent earnings topped expectations: The bank reported $1.50 EPS versus the $1.41 consensus and revenue of $367.62 million, above estimates. Revenue also rose 19.9% year over year.
• The company continues paying a solid dividend: Prosperity Bancshares പ്രഖ്യാപed a quarterly dividend of $0.60 per share, or $2.40 annually, which works out to a 3.4% yield. The dividend will be paid on July 1 to shareholders of record on June 15.

Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) has received an average recommendation of "Hold" from the thirteen analysts that are presently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $76.8182.

A number of research firms have recently issued reports on PB. Weiss Ratings cut Prosperity Bancshares from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, May 11th. Citigroup raised their price objective on Prosperity Bancshares from $72.00 to $74.00 and gave the company a "neutral" rating in a research report on Monday, May 4th. TD Cowen raised their price objective on Prosperity Bancshares from $77.00 to $79.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Piper Sandler raised their price objective on Prosperity Bancshares from $74.00 to $75.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Finally, Morgan Stanley cut their price objective on Prosperity Bancshares from $91.00 to $83.00 and set an "overweight" rating for the company in a research report on Tuesday, March 31st.

Insider Buying and Selling at Prosperity Bancshares

In other news, Director Ned S. Holmes sold 600 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $65.97, for a total transaction of $39,582.00. Following the transaction, the director owned 41,500 shares in the company, valued at approximately $2,737,755. This trade represents a 1.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders sold a total of 14,300 shares of company stock worth $972,475 in the last 90 days. 3.96% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Prosperity Bancshares

A number of large investors have recently made changes to their positions in PB. Vanguard Group Inc. grew its stake in shares of Prosperity Bancshares by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 10,256,927 shares of the bank's stock valued at $708,856,000 after acquiring an additional 140,035 shares in the last quarter. State Street Corp grew its stake in shares of Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank's stock valued at $373,231,000 after acquiring an additional 343,062 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Prosperity Bancshares by 4.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank's stock valued at $331,142,000 after acquiring an additional 205,291 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of Prosperity Bancshares by 34.5% in the fourth quarter. AQR Capital Management LLC now owns 4,600,715 shares of the bank's stock valued at $317,955,000 after acquiring an additional 1,179,307 shares in the last quarter. Finally, Morgan Stanley grew its stake in shares of Prosperity Bancshares by 0.4% in the fourth quarter. Morgan Stanley now owns 3,679,871 shares of the bank's stock valued at $254,316,000 after acquiring an additional 15,192 shares in the last quarter. Institutional investors own 80.69% of the company's stock.

Prosperity Bancshares Stock Performance

PB opened at $69.62 on Tuesday. Prosperity Bancshares has a 12-month low of $61.06 and a 12-month high of $77.20. The stock has a market cap of $7.02 billion, a price-to-earnings ratio of 12.61, a PEG ratio of 1.06 and a beta of 0.64. The business has a 50 day moving average of $68.56 and a 200-day moving average of $69.69. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.01.

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 (EPS) for the quarter, beating analysts' consensus estimates of $1.41 by $0.09. Prosperity Bancshares had a return on equity of 7.20% and a net margin of 29.50%.The company had revenue of $367.62 million during the quarter, compared to analysts' expectations of $358.60 million. During the same period last year, the firm posted $1.37 earnings per share. The business's revenue was up 19.9% on a year-over-year basis. On average, equities research analysts expect that Prosperity Bancshares will post 6.27 earnings per share for the current year.

Prosperity Bancshares Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th will be given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend is Monday, June 15th. 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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