Prosperity Bancshares Inc. (PB) Rating Lowered to Sell at Zacks Investment Research
Prosperity Bancshares Inc. (NYSE:PB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Prosperity Bancshares’ exposure in energy sector loans is expected to continue to hamper its credit quality. Further, mounting expenses remain a major headwind. Also, with the company continuously growing inorganically, merger and integration charges are expected to remain on the higher side. However, the company's organic growth story remains healthy, driven by steady rise in loan and deposits balances. Also, given its strong balance sheet position, the company is well positioned to expand further through acquisitions.”
A number of other analysts have also issued reports on the company. Hovde Group raised Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $54.00 price target on the stock in a research note on Wednesday, June 29th. Evercore ISI raised Prosperity Bancshares from a “hold” rating to a “buy” rating and set a $60.00 price target on the stock in a research note on Thursday, June 9th. Finally, Compass Point assumed coverage on Prosperity Bancshares in a research note on Tuesday, June 7th. They issued a “neutral” rating and a $50.00 price target on the stock. Three analysts have rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $50.58.
Shares of Prosperity Bancshares (NYSE:PB) opened at 54.59 on Tuesday. Prosperity Bancshares has a 12-month low of $33.57 and a 12-month high of $57.04. The company’s 50-day moving average price is $53.93 and its 200 day moving average price is $51.07. The stock has a market cap of $3.79 billion, a price-to-earnings ratio of 13.75 and a beta of 1.33.
Prosperity Bancshares (NYSE:PB) last issued its quarterly earnings data on Wednesday, July 27th. The company reported $0.98 EPS for the quarter, missing the consensus estimate of $0.99 by $0.01. Prosperity Bancshares had a net margin of 34.93% and a return on equity of 7.99%. During the same period last year, the business earned $1.03 earnings per share. On average, equities analysts predict that Prosperity Bancshares will post $3.94 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Friday, September 16th will be issued a $0.30 dividend. The ex-dividend date is Wednesday, September 14th. This represents a $1.20 annualized dividend and a dividend yield of 2.20%. Prosperity Bancshares’s dividend payout ratio is presently 30.15%.
In related news, Director Perry Mueller, Jr. sold 13,536 shares of the business’s stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $54.00, for a total value of $730,944.00. Following the sale, the director now owns 6,723 shares in the company, valued at approximately $363,042. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Robert H. Steelhammer sold 2,900 shares of the business’s stock in a transaction on Monday, September 12th. The shares were sold at an average price of $54.00, for a total value of $156,600.00. Following the completion of the sale, the director now owns 160,800 shares in the company, valued at approximately $8,683,200. The disclosure for this sale can be found here. 4.90% of the stock is owned by corporate insiders.
Several large investors have recently bought and sold shares of PB. Aperio Group LLC increased its stake in Prosperity Bancshares by 33.8% in the first quarter. Aperio Group LLC now owns 99,665 shares of the company’s stock valued at $4,623,000 after buying an additional 25,176 shares in the last quarter. Los Angeles Capital Management & Equity Research Inc. boosted its position in Prosperity Bancshares by 2.8% in the first quarter. Los Angeles Capital Management & Equity Research Inc. now owns 21,145 shares of the company’s stock valued at $981,000 after buying an additional 575 shares during the last quarter. Ngam Advisors L.P. boosted its position in Prosperity Bancshares by 10.5% in the first quarter. Ngam Advisors L.P. now owns 247,427 shares of the company’s stock valued at $11,478,000 after buying an additional 23,559 shares during the last quarter. Prudential Financial Inc. boosted its position in Prosperity Bancshares by 90.5% in the first quarter. Prudential Financial Inc. now owns 397,676 shares of the company’s stock valued at $18,448,000 after buying an additional 188,890 shares during the last quarter. Finally, BlackRock Inc. boosted its position in Prosperity Bancshares by 8.5% in the first quarter. BlackRock Inc. now owns 26,464 shares of the company’s stock valued at $1,227,000 after buying an additional 2,073 shares during the last quarter. Hedge funds and other institutional investors own 80.30% of the company’s stock.
Prosperity Bancshares Company Profile
Prosperity Bancshares, Inc is a financial holding company. The Company operates through its bank subsidiary, Prosperity Bank (the Bank). The Bank provides a range of financial products and services to small and medium-sized businesses and consumers. The Company’s additional products and services include trust services, brokerage, mortgage lending, credit card and independent sales organization (ISO) sponsorship operations.
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