Zacks Research Has Optimistic Outlook of PB FY2025 Earnings

Key Points

• Investment analysts at Zacks Research have increased their FY2025 earnings per share (EPS) estimate for Prosperity Bancshares to $5.59, up from a previous estimate of $5.39.
• The bank reported Q2 earnings of $1.42 per share, surpassing analyst estimates, despite revenue falling short of expectations.
• Prosperity Bancshares announced a quarterly dividend of $0.58 per share, representing a dividend yield of 3.4% with the ex-dividend date set for September 15th.

Prosperity Bancshares, Inc. (NYSE:PB - Free Report) - Zacks Research raised their FY2025 earnings per share (EPS) estimates for shares of Prosperity Bancshares in a research note issued on Tuesday, September 9th. Zacks Research analyst Team now anticipates that the bank will post earnings of $5.59 per share for the year, up from their previous estimate of $5.39. The consensus estimate for Prosperity Bancshares' current full-year earnings is $5.83 per share. Zacks Research also issued estimates for Prosperity Bancshares' Q4 2025 earnings at $1.36 EPS.

PB has been the subject of a number of other reports. Citigroup upped their price target on Prosperity Bancshares from $76.00 to $78.00 and gave the company a "buy" rating in a research note on Tuesday, August 26th. Piper Sandler lowered their price target on Prosperity Bancshares from $86.00 to $84.00 and set an "overweight" rating for the company in a research note on Thursday, July 24th. Cantor Fitzgerald initiated coverage on Prosperity Bancshares in a research note on Wednesday. They issued an "overweight" rating and a $78.00 price target for the company. Jefferies Financial Group initiated 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, Hovde Group lowered 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. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, Prosperity Bancshares has an average rating of "Moderate Buy" and an average target price of $83.75.

Prosperity Bancshares Trading Up 0.0%

Shares of PB stock traded up $0.02 on Thursday, reaching $67.79. The company had a trading volume of 1,039,425 shares, compared to its average volume of 1,005,223. The stock has a market cap of $6.44 billion, a PE ratio of 12.33, a PEG ratio of 1.01 and a beta of 0.74. The company has a 50-day moving average of $69.12 and a 200-day moving average of $69.53. Prosperity Bancshares has a 12 month low of $61.57 and a 12 month high of $86.75.

Prosperity Bancshares (NYSE:PB - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The bank reported $1.42 EPS for the quarter, beating analysts' consensus estimates of $1.40 by $0.02. The company had revenue of $310.70 million during the quarter, compared to analysts' expectations of $315.66 million. Prosperity Bancshares had a return on equity of 6.99% and a net margin of 29.37%.During the same period in the prior year, the business posted $1.22 EPS.

Prosperity Bancshares Announces Dividend

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

Insider Activity

In related news, Director Ned S. Holmes sold 600 shares of the business's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $67.71, for a total value of $40,626.00. Following the completion of the transaction, the director directly owned 45,300 shares in the company, valued at approximately $3,067,263. The trade was a 1.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last three months, insiders sold 15,400 shares of company stock valued at $1,069,500. 4.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Prosperity Bancshares

A number of large investors have recently bought and sold shares of PB. Ameriprise Financial Inc. boosted its position in Prosperity Bancshares by 7.3% during the 4th quarter. Ameriprise Financial Inc. now owns 319,320 shares of the bank's stock worth $24,065,000 after acquiring an additional 21,857 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of Prosperity Bancshares by 4.3% in the 4th quarter. Bank of America Corp DE now owns 259,125 shares of the bank's stock valued at $19,525,000 after buying an additional 10,622 shares during the last quarter. Cetera Investment Advisers boosted its holdings in shares of Prosperity Bancshares by 5.9% in the 4th quarter. Cetera Investment Advisers now owns 7,675 shares of the bank's stock valued at $578,000 after buying an additional 427 shares during the last quarter. Deutsche Bank AG boosted its holdings in shares of Prosperity Bancshares by 10.6% in the 4th quarter. Deutsche Bank AG now owns 6,194 shares of the bank's stock valued at $467,000 after buying an additional 592 shares during the last quarter. Finally, Lazard Asset Management LLC acquired a new stake in shares of Prosperity Bancshares in the 4th quarter valued at approximately $270,000. Institutional investors and hedge funds own 80.69% of the company's stock.

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.