Zacks Investment Research Upgrades Prosperity Bancshares Inc. (PB) to Hold
Prosperity Bancshares Inc. (NYSE:PB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Thursday.
According to Zacks, “Estimates have been stable lately ahead of Prosperity Bancshares’ third-quarter 2016 earnings release. Notably, the company has a positive record of earnings surprises in recent quarters. Further, the company’s organic growth story remains healthy, driven by a steady rise in loan and deposit balances. Moreover, given the strong balance sheet position, the company is well positioned to expand further through acquisitions. In addition, improving net interest margin and impressive credit quality continue to support its financials. However, mounting operating expenses remain a major headwind given the company’s investment in franchise. Also, as the company looks forward to further inorganic growth, merger-related charges will lead to an increase in overall expenses. Additionally, exposure in energy sector loans is expected to hurt its credit quality in the near term.”
Other equities research analysts have also recently issued research reports about the stock. FBR & Co upgraded shares of Prosperity Bancshares from a “market perform” rating to an “outperform” rating and increased their price target for the company from $55.00 to $60.00 in a report on Tuesday. Wedbush began coverage on shares of Prosperity Bancshares in a report on Thursday, October 6th. They issued a “neutral” rating and a $54.00 target price on the stock. SunTrust Banks Inc. began coverage on shares of Prosperity Bancshares in a report on Thursday, October 6th. They issued a “neutral” rating on the stock. Deutsche Bank AG raised their target price on shares of Prosperity Bancshares from $54.00 to $59.00 and gave the stock a “hold” rating in a report on Tuesday. Finally, Hovde Group upgraded shares of Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $54.00 target price on the stock in a report on Wednesday, June 29th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average price target of $52.08.
Shares of Prosperity Bancshares (NYSE:PB) traded down 4.00% during midday trading on Thursday, reaching $53.25. 128,080 shares of the company’s stock were exchanged. The stock has a market cap of $3.70 billion, a price-to-earnings ratio of 13.41 and a beta of 1.29. The firm has a 50 day moving average of $54.43 and a 200-day moving average of $51.69. Prosperity Bancshares has a one year low of $33.57 and a one year high of $57.04.
Prosperity Bancshares (NYSE:PB) last announced its earnings results on Wednesday, July 27th. The company reported $0.98 earnings per share for the quarter, missing the Zacks’ 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 quarter in the prior year, the company posted $1.03 EPS. On average, equities research analysts anticipate that Prosperity Bancshares will post $3.94 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Friday, September 16th were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Wednesday, September 14th. This represents a $1.20 annualized dividend and a dividend yield of 2.16%. Prosperity Bancshares’s payout ratio is 30.15%.
In other Prosperity Bancshares news, Director Perry Mueller, Jr. sold 13,536 shares of Prosperity Bancshares stock in a transaction on Thursday, August 25th. The shares were sold at an average price of $54.00, for a total value of $730,944.00. Following the sale, the director now directly owns 6,723 shares in the company, valued at approximately $363,042. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Robert H. Steelhammer sold 2,900 shares of Prosperity Bancshares stock in a transaction on Monday, September 12th. The shares were sold at an average price of $54.00, for a total transaction of $156,600.00. Following the completion of the sale, the director now owns 160,800 shares in the company, valued at $8,683,200. The disclosure for this sale can be found here. Insiders own 4.90% of the company’s stock.
A number of hedge funds have recently made changes to their positions in PB. Jacobs Levy Equity Management Inc. increased its stake in shares of Prosperity Bancshares by 11.9% in the first quarter. Jacobs Levy Equity Management Inc. now owns 32,710 shares of the company’s stock worth $1,517,000 after buying an additional 3,480 shares in the last quarter. Hancock Holding Co. increased its stake in shares of Prosperity Bancshares by 1.3% in the first quarter. Hancock Holding Co. now owns 158,545 shares of the company’s stock worth $7,355,000 after buying an additional 2,060 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Prosperity Bancshares by 3.5% in the first quarter. Geode Capital Management LLC now owns 428,570 shares of the company’s stock worth $19,881,000 after buying an additional 14,530 shares in the last quarter. Loomis Sayles & Co. L P increased its stake in shares of Prosperity Bancshares by 5.6% in the first quarter. Loomis Sayles & Co. L P now owns 996,508 shares of the company’s stock worth $46,228,000 after buying an additional 52,678 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in shares of 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 in the last quarter. 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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