Prosperity Bancshares Inc. (PB) Upgraded to Hold by Zacks Investment Research
Prosperity Bancshares Inc. (NYSE:PB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “Prosperity Bancshares’ estimates have been stable lately ahead of its third-quarter 2016 earnings release. Also, the company has positive record of earnings surprises in recent quarters. Further, its organic growth story remains healthy, driven by steady rise in loan and deposits balances. An anticipated increase in loan demand and the likely rise in interest rates will boost NIM. Moreover, given the strong balance sheet position, the company is well positioned to expand further through acquisitions. However, mounting operating expenses remain a major headwind given the company’s investment in franchise. Also, exposure in energy sector loans is expected to hamper its credit quality in the near term. Regulatory pressure is expected to further add to the company’s limitations.”
Several other equities research analysts have also recently weighed in on PB. Compass Point began coverage on Prosperity Bancshares in a report on Tuesday, June 7th. They issued a “neutral” rating and a $50.00 price objective for the company. Evercore ISI upgraded Prosperity Bancshares from a “hold” rating to a “buy” rating and set a $60.00 price objective for the company in a report on Thursday, June 9th. Finally, Hovde Group upgraded Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $54.00 price objective for the company in a report on Wednesday, June 29th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and six have issued a buy rating to the company. Prosperity Bancshares has a consensus rating of “Hold” and a consensus target price of $50.58.
Shares of Prosperity Bancshares (NYSE:PB) traded down 1.51% during midday trading on Monday, reaching $54.06. The company had a trading volume of 112,600 shares. The company has a 50-day moving average price of $54.03 and a 200 day moving average price of $51.16. Prosperity Bancshares has a one year low of $33.57 and a one year high of $57.04. The company has a market capitalization of $3.76 billion, a P/E ratio of 13.62 and a beta of 1.28.
Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings results on Wednesday, July 27th. The company reported $0.98 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.99 by $0.01. Prosperity Bancshares had a return on equity of 7.99% and a net margin of 34.93%. During the same period in the prior year, the business earned $1.03 EPS. Equities analysts anticipate that Prosperity Bancshares will post $3.94 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 3rd. Shareholders of record on Friday, September 16th will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 2.19%. The ex-dividend date is Wednesday, September 14th. Prosperity Bancshares’s payout ratio is 30.15%.
In other Prosperity Bancshares news, Director Robert H. Steelhammer sold 2,900 shares of Prosperity Bancshares stock in a transaction on Monday, September 12th. The stock was 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 of the company’s stock, valued at approximately $8,683,200. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Perry Mueller, Jr. sold 13,536 shares of Prosperity Bancshares 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 completion of the sale, the director now directly owns 6,723 shares of the company’s stock, valued at approximately $363,042. The disclosure for this sale can be found here. Company insiders own 4.90% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in Prosperity Bancshares by 4.3% in the second quarter. Vanguard Group Inc. now owns 5,293,252 shares of the company’s stock worth $269,903,000 after buying an additional 219,156 shares during the last quarter. Riverhead Capital Management LLC raised its stake in Prosperity Bancshares by 40,913.9% in the second quarter. Riverhead Capital Management LLC now owns 5,000,000 shares of the company’s stock worth $5,012,000 after buying an additional 4,987,809 shares during the last quarter. State Street Corp raised its stake in Prosperity Bancshares by 2.3% in the first quarter. State Street Corp now owns 3,077,423 shares of the company’s stock worth $142,763,000 after buying an additional 70,233 shares during the last quarter. BlackRock Institutional Trust Company N.A. raised its stake in Prosperity Bancshares by 1.2% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,958,826 shares of the company’s stock worth $99,881,000 after buying an additional 22,530 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its stake in Prosperity Bancshares by 23.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,893,919 shares of the company’s stock worth $87,859,000 after buying an additional 361,881 shares during the last quarter. 80.30% of the stock is owned by institutional investors and hedge funds.
About Prosperity Bancshares
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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