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

Key Points

• Prosperity Bancshares, Inc. has been assigned a consensus rating of "Moderate Buy" by eighteen ratings firms, with an average twelve-month price target of $83.1250.
• In the second quarter, multiple institutional investors significantly increased their stake in Prosperity Bancshares, with hedge funds now owning 80.69% of the company's stock.
• The company reported a quarterly dividend of $0.58 per share, yielding approximately 3.5%, and the dividend payout ratio stands at 42.18%.

Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) has been assigned an average rating of "Moderate Buy" from the eighteen ratings firms that are presently covering the company, MarketBeat Ratings reports. Six equities research analysts have rated the stock with a hold recommendation and twelve have given a buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $83.1250.

A number of equities analysts have commented on PB shares. Cantor Fitzgerald started coverage on shares of Prosperity Bancshares in a report on Wednesday, September 10th. They issued an "overweight" rating and a $78.00 target price for the company. Cowen started coverage on shares of Prosperity Bancshares in a report on Wednesday, September 24th. They issued a "buy" rating for the company. Piper Sandler reduced their target price on shares of 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 reduced their target price on shares of Prosperity Bancshares from $85.00 to $83.00 and set an "outperform" rating for the company in a report on Thursday, July 24th. Finally, Citigroup reiterated a "neutral" rating and issued a $68.00 target price (down from $78.00) on shares of Prosperity Bancshares in a report on Monday, September 15th.

Insider Activity

In other news, Director Ned S. Holmes sold 600 shares of the company's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $72.04, for a total transaction of $43,224.00. Following the transaction, the director owned 44,900 shares in the company, valued at $3,234,596. This represents a 1.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders have sold a total of 14,300 shares of company stock worth $982,934 in the last 90 days. Corporate insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Prosperity Bancshares

Hedge funds and other institutional investors have recently bought and sold shares of the business. Steph & Co. acquired a new position in Prosperity Bancshares in the 2nd quarter worth approximately $38,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in Prosperity Bancshares in the 1st quarter worth approximately $48,000. Employees Retirement System of Texas acquired a new position in Prosperity Bancshares in the 2nd quarter worth approximately $48,000. Osaic Holdings Inc. increased its holdings in Prosperity Bancshares by 34.9% in the 2nd quarter. Osaic Holdings Inc. now owns 719 shares of the bank's stock worth $51,000 after buying an additional 186 shares during the period. Finally, IFP Advisors Inc increased its holdings in Prosperity Bancshares by 1,251.4% in the 2nd quarter. IFP Advisors Inc now owns 973 shares of the bank's stock worth $68,000 after buying an additional 901 shares during the period. Institutional investors and hedge funds own 80.69% of the company's stock.

Prosperity Bancshares Price Performance

NYSE:PB opened at $66.89 on Thursday. Prosperity Bancshares has a 1-year low of $61.57 and a 1-year high of $86.75. The company has a 50-day moving average of $67.23 and a 200 day moving average of $68.93. The firm has a market cap of $6.35 billion, a PE ratio of 12.16, a price-to-earnings-growth ratio of 0.99 and a beta of 0.73.

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

Prosperity Bancshares Announces Dividend

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

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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