Hovde Group Forecasts Strong Price Appreciation for Prosperity Bancshares (NYSE:PB) Stock

Prosperity Bancshares (NYSE:PB) had its price target increased by stock analysts at Hovde Group from $75.00 to $77.00 in a research report issued to clients and investors on Thursday,Finviz reports. The firm currently has an “outperform” rating on the bank’s stock. Hovde Group’s target price would suggest a potential upside of 14.49% from the stock’s previous close.

Several other equities research analysts have also issued reports on PB. Royal Bank Of Canada reduced their target price on shares of Prosperity Bancshares from $78.00 to $72.00 and set a “sector perform” rating for the company in a report on Friday, October 10th. Stephens upped their price target on shares of Prosperity Bancshares from $77.00 to $81.00 and gave the stock an “overweight” rating in a research report on Thursday, October 30th. TD Cowen reissued a “buy” rating on shares of Prosperity Bancshares in a research note on Wednesday, January 7th. Raymond James Financial cut shares of Prosperity Bancshares from an “outperform” rating to a “market perform” rating in a research note on Wednesday, January 7th. Finally, Barclays set a $75.00 price target on Prosperity Bancshares in a research note on Thursday. Seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $79.58.

Prosperity Bancshares Price Performance

NYSE:PB opened at $67.25 on Thursday. Prosperity Bancshares has a one year low of $61.06 and a one year high of $82.75. The business has a fifty day moving average price of $70.86 and a 200-day moving average price of $68.31. The firm has a market capitalization of $6.39 billion, a price-to-earnings ratio of 11.99, a price-to-earnings-growth ratio of 0.95 and a beta of 0.68.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings results on Wednesday, January 28th. The bank reported $1.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.45 by $0.01. Prosperity Bancshares had a return on equity of 7.06% and a net margin of 30.28%.The business had revenue of $317.73 million during the quarter, compared to analyst estimates of $319.30 million. During the same quarter in the previous year, the company posted $1.37 earnings per share. Prosperity Bancshares’s revenue for the quarter was down 5.9% on a year-over-year basis. On average, equities research analysts expect that Prosperity Bancshares will post 5.83 earnings per share for the current fiscal year.

Insider Buying and Selling at Prosperity Bancshares

In other Prosperity Bancshares news, Director Leah Henderson sold 1,050 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $73.00, for a total transaction of $76,650.00. Following the completion of the transaction, the director owned 8,075 shares in the company, valued at $589,475. This trade represents a 11.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Ned S. Holmes sold 600 shares of the company’s stock in a transaction that occurred on Wednesday, November 5th. The stock was sold at an average price of $66.84, for a total value of $40,104.00. Following the sale, the director directly owned 43,300 shares in the company, valued at $2,894,172. This trade represents a 1.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 15,050 shares of company stock valued at $1,056,009 in the last 90 days. Insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On Prosperity Bancshares

Large investors have recently bought and sold shares of the business. AQR Capital Management LLC lifted its position in Prosperity Bancshares by 175.1% during the second quarter. AQR Capital Management LLC now owns 2,383,162 shares of the bank’s stock valued at $167,393,000 after purchasing an additional 1,516,939 shares during the last quarter. American Century Companies Inc. raised its position in shares of Prosperity Bancshares by 4,674.9% during the 2nd 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 in the last quarter. Norges Bank bought a new position in shares of Prosperity Bancshares in the 2nd quarter valued at about $53,398,000. Vanguard Group Inc. grew its position in Prosperity Bancshares by 4.8% in the third quarter. Vanguard Group Inc. now owns 10,116,892 shares of the bank’s stock worth $671,256,000 after acquiring an additional 465,227 shares in the last quarter. Finally, State Street Corp increased its stake in Prosperity Bancshares by 6.6% during the third quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock worth $373,231,000 after acquiring an additional 343,062 shares during the last quarter. Institutional investors own 80.69% of the company’s stock.

Key Prosperity Bancshares News

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Big strategic scale-up: the deal would make Prosperity the second-largest Texas bank by deposits and adds 52 Stellar branches across Houston, Beaumont and Dallas — a meaningful deposit and market-share gain. Reuters: Prosperity to buy Stellar Bancorp
• Positive Sentiment: Q4 bottom-line beat and healthy margins: Prosperity reported $1.46 EPS (vs. $1.45 consensus) and a net margin ~30%, showing core profitability resilience despite a revenue decline versus year-ago. Zacks: PB tops Q4 estimates
• Neutral Sentiment: Deal structure: the $2.0B transaction is a mix of cash and stock (definitive merger agreement); execution, timing and regulatory approvals will drive the eventual financial impact. PR Newswire: Merger announcement
• Neutral Sentiment: Divergent analyst takes: some investors/analysts view the combination as a strong growth and efficiency opportunity (buy-the-dip arguments), while others say the market hasn’t fully rewarded PB yet. Seeking Alpha: Efficient, And Growing
• Negative Sentiment: Market reaction: investors reacted negatively (shares fell) amid concerns the deal will dilute near-term EPS, increase expenses for integration, and add execution/regulatory risk. AAII: Why PB stock is down
• Negative Sentiment: Top-line weakness: revenue was down ~5.9% year-over-year and came in slightly below some expectations, reinforcing investor caution about near-term growth before merger synergies materialize. MarketBeat: Q4 results and call

About Prosperity Bancshares

Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.

Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.