Prosperity Bancshares, Inc. (NYSE:PB) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Prosperity Bancshares, Inc. has garnered an average recommendation of "Moderate Buy" from 15 research firms, with a 1-year target price averaging at $84.57.
• The bank reported an EPS of $1.42 for the last quarter, exceeding analysts' expectations of $1.40, although revenue fell short at $310.70 million against an expectation of $315.66 million.
• Prosperity Bancshares announced a quarterly dividend of $0.58, representing a 3.4% yield, with payment scheduled for October 1st to shareholders of record on September 15th.

Shares of Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) have been assigned an average rating of "Moderate Buy" from the fifteen analysts that are currently covering the firm, MarketBeat Ratings reports. Six research analysts have rated the stock with a hold rating and nine have issued a buy rating on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $84.5714.

A number of equities research analysts have recently issued reports on PB shares. Piper Sandler reduced their price objective on Prosperity Bancshares from $86.00 to $84.00 and set an "overweight" rating for the company in a report on Thursday, July 24th. Hovde Group cut their price target on Prosperity Bancshares from $85.00 to $83.00 and set an "outperform" rating for the company in a research note on Thursday, July 24th. Wall Street Zen upgraded Prosperity Bancshares from a "sell" rating to a "hold" rating in a research note on Tuesday, May 13th. Jefferies Financial Group began coverage on Prosperity Bancshares in a research note on Wednesday, May 21st. They issued a "buy" rating and a $85.00 price target for the company. Finally, Keefe, Bruyette & Woods cut their price target on Prosperity Bancshares from $95.00 to $90.00 and set an "outperform" rating for the company in a research note on Monday, May 5th.

Prosperity Bancshares Trading Down 1.6%

Shares of NYSE:PB traded down $1.11 during trading on Wednesday, reaching $67.19. 786,350 shares of the stock were exchanged, compared to its average volume of 678,767. Prosperity Bancshares has a 12 month low of $61.57 and a 12 month high of $86.75. The firm has a market cap of $6.38 billion, a PE ratio of 12.22, a PEG ratio of 1.03 and a beta of 0.71. The stock has a 50-day moving average price of $69.81 and a 200-day moving average price of $71.08.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The bank reported $1.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.40 by $0.02. Prosperity Bancshares had a return on equity of 6.99% and a net margin of 29.37%. The company had revenue of $310.70 million during the quarter, compared to analysts' expectations of $315.66 million. During the same quarter in the previous year, the company posted $1.22 earnings per share. On average, sell-side analysts expect that Prosperity Bancshares will post 5.83 earnings per share for the current fiscal year.

Prosperity Bancshares Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Monday, September 15th will be paid a dividend of $0.58 per share. The ex-dividend date is Monday, September 15th. This represents a $2.32 annualized dividend and a yield of 3.5%. Prosperity Bancshares's dividend payout ratio is presently 42.18%.

Insiders Place Their Bets

In other Prosperity Bancshares news, Director Ned S. Holmes sold 500 shares of the company's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $67.88, for a total transaction of $33,940.00. Following the completion of the sale, the director directly owned 95,415 shares in the company, valued at $6,476,770.20. This represents a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 14,300 shares of company stock worth $1,002,309 in the last three months. 4.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of PB. Wealth Enhancement Advisory Services LLC increased its holdings in Prosperity Bancshares by 8.2% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 7,362 shares of the bank's stock valued at $525,000 after purchasing an additional 561 shares during the period. Principal Financial Group Inc. increased its holdings in Prosperity Bancshares by 0.4% in the first quarter. Principal Financial Group Inc. now owns 219,056 shares of the bank's stock valued at $15,634,000 after purchasing an additional 855 shares during the period. Envestnet Asset Management Inc. increased its holdings in Prosperity Bancshares by 1.8% in the first quarter. Envestnet Asset Management Inc. now owns 58,236 shares of the bank's stock valued at $4,156,000 after purchasing an additional 1,016 shares during the period. Teacher Retirement System of Texas increased its holdings in Prosperity Bancshares by 23.1% in the first quarter. Teacher Retirement System of Texas now owns 21,818 shares of the bank's stock valued at $1,557,000 after purchasing an additional 4,098 shares during the period. Finally, Cetera Investment Advisers increased its holdings in Prosperity Bancshares by 5.9% in the fourth quarter. Cetera Investment Advisers now owns 7,675 shares of the bank's stock valued at $578,000 after purchasing an additional 427 shares during the period. 80.69% of the stock is currently owned by institutional investors and hedge funds.

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.