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

Key Points

• Analysts maintain a consensus “Hold” rating on Prosperity Bancshares, with eight holds, five buys and one sell among 14 brokerages. The average 12-month price target is $78.36, versus a recent share price of $72.86.
• Prosperity Bancshares reported quarterly EPS of $1.62, beating the $1.50 consensus estimate, while revenue rose 25.9% year over year to $369.18 million but fell short of expectations.
• The company declared a quarterly dividend of $0.60 per share, or $2.40 annualized, representing a 3.3% yield and a 41.59% payout ratio. Institutional investors and hedge funds own approximately 80.69% of the stock.

Shares of Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) have been assigned an average recommendation of "Hold" from the fourteen brokerages that are covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and five have issued a buy rating on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $78.3636.

PB has been the topic of several recent research reports. Weiss Ratings raised shares of Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, July 29th. Cantor Fitzgerald reiterated an "overweight" rating and set a $80.00 price objective on shares of Prosperity Bancshares in a research note on Tuesday, June 23rd. Royal Bank Of Canada boosted their price objective on Prosperity Bancshares from $78.00 to $80.00 and gave the company a "sector perform" rating in a report on Thursday, July 30th. TD Cowen boosted their price objective on Prosperity Bancshares from $82.00 to $84.00 and gave the company a "buy" rating in a report on Friday, July 31st. Finally, Citigroup upped their target price on Prosperity Bancshares from $75.00 to $79.00 and gave the stock a "neutral" rating in a research note on Friday, July 31st.

Insider Buying and Selling

In other news, Director Ned S. Holmes sold 500 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $73.64, for a total transaction of $36,820.00. Following the sale, the director owned 70,615 shares of the company's stock, valued at $5,200,088.60. This trade represents a 0.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In the last 90 days, insiders sold 12,100 shares of company stock valued at $872,923. Corporate insiders own 3.96% of the company's stock.

Hedge Funds Weigh In On Prosperity Bancshares

Several large investors have recently made changes to their positions in PB. Syon Capital LLC purchased a new stake in Prosperity Bancshares during the second quarter worth $307,000. iSAM Funds UK Ltd increased its holdings in Prosperity Bancshares by 75.8% in the second quarter. iSAM Funds UK Ltd now owns 13,400 shares of the bank's stock valued at $979,000 after buying an additional 5,779 shares in the last quarter. Nykredit A S purchased a new position in Prosperity Bancshares in the second quarter valued at $427,000. Legacy Financial Advisors Inc. acquired a new position in shares of Prosperity Bancshares in the second quarter worth about $207,000. Finally, Financial Life Advisors acquired a new position in shares of Prosperity Bancshares in the second quarter worth about $312,000. 80.69% of the stock is currently owned by institutional investors and hedge funds.

Prosperity Bancshares News Roundup

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

• Positive Sentiment: Zacks raised several earnings forecasts. The firm increased its FY2026 EPS estimate to $6.40 from $6.24, lifted FY2027 EPS to $7.22 from $7.16, and raised estimates for Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q4 2027 and Q1 2028. These revisions signal improving expectations for PB’s medium-term profitability. Prosperity Bancshares analyst estimates
• Neutral Sentiment: Investors are comparing PB’s valuation with Cullen/Frost Bankers. A Zacks analysis examines which Southwest bank offers the better value opportunity. PB trades at a relatively modest valuation, with a reported P/E ratio near 12.6, but the article’s impact depends on its comparative conclusion and may be limited without a new company-specific catalyst. PB versus CFR value analysis
• Negative Sentiment: Some future-quarter estimates were reduced. Zacks lowered its Q3 2027 EPS forecast to $1.81 from $1.85 and trimmed its Q2 2028 estimate to $1.92 from $1.93. The cuts are small, but they indicate that the earnings outlook is not uniformly improving. Prosperity Bancshares revised estimates
• Negative Sentiment: Director Ned S. Holmes sold 1,100 shares for approximately $81,000 across two transactions at prices around $73.64–$73.67. He retained a substantial position, so the sales are not necessarily a strong bearish signal, but insider selling can weigh modestly on sentiment. SEC insider transaction filing

Prosperity Bancshares Price Performance

NYSE PB opened at $72.86 on Friday. The company has a market cap of $7.35 billion, a price-to-earnings ratio of 12.63, a PEG ratio of 0.79 and a beta of 0.64. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.75. The stock's fifty day moving average price is $73.01 and its 200 day moving average price is $70.53. Prosperity Bancshares has a 1 year low of $61.06 and a 1 year high of $77.20.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, topping analysts' consensus estimates of $1.50 by $0.12. The company had revenue of $369.18 million during the quarter, compared to analysts' expectations of $380.73 million. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The firm's revenue was up 25.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.42 EPS. As a group, equities research analysts forecast that Prosperity Bancshares will post 6.47 earnings per share for the current year.

Prosperity Bancshares Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be issued a $0.60 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $2.40 dividend on an annualized basis and a yield of 3.3%. Prosperity Bancshares's payout ratio is presently 41.59%.

About Prosperity Bancshares

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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