Wall Street Zen Upgrades Prosperity Bancshares (NYSE:PB) to Hold

Key Points

• Wall Street Zen upgraded Prosperity Bancshares from “sell” to “hold,” bringing its view closer to the broader analyst consensus. Five analysts rate the stock a Buy, eight a Hold, and one a Sell, with an average target price of $78.36.
• Prosperity Bancshares reported quarterly EPS of $1.62, above the $1.50 consensus estimate, while revenue increased 25.9% year over year to $391.25 million. Analysts expect full-year EPS of approximately $6.34.
• Shares opened at $74.79, near the company’s 52-week high of $77.20. Royal Bank of Canada and Piper Sandler raised their price targets to $80, while insiders sold 12,100 shares worth about $854,000 over the past three months.

Prosperity Bancshares (NYSE:PB - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued on Saturday.

Other equities research analysts have also issued research reports about the stock. Weiss Ratings raised shares of Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday. Cantor Fitzgerald reissued an "overweight" rating and set a $80.00 price target on shares of Prosperity Bancshares in a report on Tuesday, June 23rd. Morgan Stanley reissued an "equal weight" rating and set a $80.00 price target (down from $85.00) on shares of Prosperity Bancshares in a report on Monday, July 6th. Benchmark began coverage on shares of Prosperity Bancshares in a research report on Wednesday, June 24th. They issued a "hold" rating on the stock. Finally, Royal Bank Of Canada upped their price objective on shares of Prosperity Bancshares from $78.00 to $80.00 and gave the stock a "sector perform" rating in a research note on Thursday. Five investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $78.36.

Prosperity Bancshares Price Performance

Shares of PB stock opened at $74.79 on Friday. The stock's fifty day simple moving average is $71.65 and its 200 day simple moving average is $70.28. Prosperity Bancshares has a one year low of $61.06 and a one year high of $77.20. The firm has a market cap of $7.54 billion, a price-to-earnings ratio of 12.96, a P/E/G ratio of 1.18 and a beta of 0.63. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.76.

Prosperity Bancshares (NYSE:PB - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The bank reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.12. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The firm had revenue of $391.25 million during the quarter, compared to analyst estimates of $380.73 million. During the same period in the prior year, the company posted $1.42 earnings per share. The business's revenue for the quarter was up 25.9% compared to the same quarter last year. On average, analysts expect that Prosperity Bancshares will post 6.34 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Ned S. Holmes sold 600 shares of Prosperity Bancshares stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $70.24, for a total value of $42,144.00. Following the completion of the transaction, the director directly owned 40,700 shares of the company's stock, valued at $2,858,768. The trade was a 1.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders sold 12,100 shares of company stock valued at $854,426 over the last three months. Insiders own 3.96% of the company's stock.

Institutional Investors Weigh In On Prosperity Bancshares

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PB. Danske Bank A S acquired a new position in shares of Prosperity Bancshares during the third quarter worth approximately $40,000. SouthState Bank Corp acquired a new stake in shares of Prosperity Bancshares in the fourth quarter valued at approximately $49,000. Osaic Holdings Inc. increased its holdings in shares of Prosperity Bancshares by 34.9% in the second quarter. Osaic Holdings Inc. now owns 719 shares of the bank's stock valued at $51,000 after purchasing an additional 186 shares in the last quarter. Eurizon Capital SGR S.p.A. bought a new position in Prosperity Bancshares in the 4th quarter worth approximately $55,000. Finally, Group One Trading LLC bought a new position in Prosperity Bancshares in the 4th quarter worth approximately $66,000. Institutional investors and hedge funds own 80.69% of the company's stock.

More Prosperity Bancshares News

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

• Positive Sentiment: Strong Q2 earnings and revenue growth: Prosperity Bancshares reported adjusted earnings of $1.62 per share, exceeding the $1.51 consensus estimate, while revenue rose 25.9% year over year to $391.26 million. Results benefited from contributions from the Stellar Bancorp acquisition and the absence of a credit-loss provision. PB's Q2 Earnings Beat Estimates as Revenues Rise, Stellar Deal Closed
• Positive Sentiment: Merger upside highlighted: Management’s earnings call emphasized the potential benefits of completing the Stellar Bancorp buyout, including increased scale and revenue contributions. Investors may view the integration as a source of additional earnings growth. Prosperity Bancshares Earnings Call Highlights Merger Upside
• Positive Sentiment: Price targets raised: Royal Bank of Canada increased its target from $78 to $80, while Piper Sandler raised its target from $75 to $80. Both targets indicate approximately 7% potential upside from the referenced trading level, although neither firm assigned a bullish rating.
• Neutral Sentiment: Dividend appeal: A recent analysis points to Prosperity Bancshares’ potential as a dividend stock, which could attract income-focused investors, though the article does not identify a new dividend increase or policy change. This is Why Prosperity Bancshares Is a Great Dividend Stock
• Negative Sentiment: Insider selling: Director Ned S. Holmes sold a combined 1,100 shares worth roughly $81,700. The sales reduced his holdings by less than 2.2% overall, making the signal relatively minor but modestly negative.

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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