Zacks Research Has Bearish Estimate for PB FY2025 Earnings

Key Points

• Zacks Research has decreased its FY2025 earnings estimate for Prosperity Bancshares to $5.39 per share, down from $5.70, which is below the current consensus estimate of $5.83.
• Several analysts have recently adjusted their ratings and price targets for Prosperity Bancshares, including upgrades to "hold" and "buy," while consensus price targets average at $84.57.
• The bank announced a quarterly dividend of $0.58 per share, with a dividend yield of 3.4%, scheduled for payment on October 1st.

Prosperity Bancshares, Inc. (NYSE:PB - Free Report) - Analysts at Zacks Research decreased their FY2025 earnings per share estimates for shares of Prosperity Bancshares in a research report issued on Wednesday, August 13th. Zacks Research analyst R. Department now forecasts that the bank will earn $5.39 per share for the year, down from their prior forecast of $5.70. The consensus estimate for Prosperity Bancshares' current full-year earnings is $5.83 per share.

PB has been the subject of a number of other research reports. Wall Street Zen upgraded Prosperity Bancshares from a "sell" rating to a "hold" rating in a report on Tuesday, May 13th. Keefe, Bruyette & Woods cut their price objective on shares of Prosperity Bancshares from $95.00 to $90.00 and set an "outperform" rating for the company in a research report on Monday, May 5th. Piper Sandler cut their price objective on shares of Prosperity Bancshares from $86.00 to $84.00 and set an "overweight" rating for the company in a research report on Thursday, July 24th. Hovde Group dropped their price target on shares of Prosperity Bancshares from $85.00 to $83.00 and set an "outperform" rating for the company in a research report on Thursday, July 24th. Finally, Jefferies Financial Group initiated coverage on shares of Prosperity Bancshares in a research report on Wednesday, May 21st. They issued a "buy" rating and a $85.00 price target for the company. Seven analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $84.57.

Prosperity Bancshares Price Performance

Shares of NYSE PB opened at $67.56 on Thursday. The stock has a market capitalization of $6.42 billion, a price-to-earnings ratio of 12.32, a PEG ratio of 1.00 and a beta of 0.71. The business has a 50-day moving average of $69.81 and a 200-day moving average of $71.17. Prosperity Bancshares has a fifty-two week low of $61.57 and a fifty-two week high of $86.75.

Prosperity Bancshares (NYSE:PB - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The bank reported $1.42 EPS for the quarter, topping the consensus estimate of $1.40 by $0.02. The business had revenue of $310.70 million for the quarter, compared to the consensus estimate of $315.66 million. Prosperity Bancshares had a return on equity of 6.99% and a net margin of 29.37%. During the same quarter last year, the business posted $1.22 EPS.

Hedge Funds Weigh In On Prosperity Bancshares

A number of hedge funds have recently modified their holdings of the company. State Street Corp increased its position in shares of Prosperity Bancshares by 3.2% during the second quarter. State Street Corp now owns 5,236,977 shares of the bank's stock valued at $370,768,000 after buying an additional 160,740 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Prosperity Bancshares by 2.2% during the first quarter. Dimensional Fund Advisors LP now owns 4,688,304 shares of the bank's stock valued at $334,595,000 after buying an additional 102,044 shares during the period. T. Rowe Price Investment Management Inc. increased its position in shares of Prosperity Bancshares by 14.6% during the first quarter. T. Rowe Price Investment Management Inc. now owns 3,232,995 shares of the bank's stock valued at $230,739,000 after buying an additional 412,283 shares during the period. Geode Capital Management LLC increased its position in shares of Prosperity Bancshares by 0.7% during the second quarter. Geode Capital Management LLC now owns 1,788,114 shares of the bank's stock valued at $125,615,000 after buying an additional 11,606 shares during the period. Finally, American Century Companies Inc. increased its position in shares of Prosperity Bancshares by 4,674.9% during the second quarter. American Century Companies Inc. now owns 1,426,917 shares of the bank's stock valued at $100,227,000 after buying an additional 1,397,033 shares during the period. Hedge funds and other institutional investors own 80.69% of the company's stock.

Insider Activity

In other Prosperity Bancshares news, Director Ned S. Holmes sold 500 shares of the business's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $66.33, for a total value of $33,165.00. Following the completion of the sale, the director directly owned 95,915 shares of the company's stock, valued at $6,362,041.95. The trade was a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Over the last ninety days, insiders have sold 13,200 shares of company stock worth $927,623. Insiders own 4.20% of the company's stock.

Prosperity Bancshares Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Monday, September 15th will be issued a dividend of $0.58 per share. This represents a $2.32 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend is Monday, September 15th. Prosperity Bancshares's payout ratio is currently 42.18%.

Prosperity Bancshares Company Profile

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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