Prosperity Bancshares’ (PB) “Neutral” Rating Reiterated at DA Davidson

DA Davidson reissued their neutral rating on shares of Prosperity Bancshares (NYSE:PB) in a research note released on Thursday morning, Marketbeat.com reports. They currently have a $76.00 target price on the bank’s stock.

A number of other brokerages have also recently weighed in on PB. Raymond James Financial cut Prosperity Bancshares from an “outperform” rating to a “market perform” rating in a research report on Wednesday, January 7th. Weiss Ratings restated a “hold (c)” rating on shares of Prosperity Bancshares in a research note on Wednesday, October 8th. Piper Sandler lowered shares of Prosperity Bancshares from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $77.00 to $74.00 in a report on Thursday. Royal Bank Of Canada cut their price target 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. Finally, TD Cowen reaffirmed a “buy” rating on shares of Prosperity Bancshares in a research note on Wednesday, January 7th. Seven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $79.31.

Prosperity Bancshares Stock Performance

Shares of Prosperity Bancshares stock opened at $68.98 on Thursday. The firm has a market cap of $6.55 billion, a P/E ratio of 12.04, a price-to-earnings-growth ratio of 0.89 and a beta of 0.68. The firm’s 50-day simple moving average is $70.93 and its 200-day simple moving average is $68.24. Prosperity Bancshares has a twelve month low of $61.06 and a twelve month high of $81.53.

Prosperity Bancshares (NYSE:PB) last announced its quarterly earnings results on Wednesday, January 28th. The bank reported $1.46 EPS for the quarter, topping analysts’ consensus estimates of $1.45 by $0.01. Prosperity Bancshares had a net margin of 31.22% and a return on equity of 7.11%. The firm had revenue of $317.73 million during the quarter, compared to analysts’ expectations of $319.30 million. During the same quarter last year, the company earned $1.37 earnings per share. The company’s revenue for the quarter was down 5.9% compared to the same quarter last year. On average, equities analysts forecast that Prosperity Bancshares will post 5.83 earnings per share for the current fiscal year.

Prosperity Bancshares Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 3.5%. The ex-dividend date is Friday, March 13th. Prosperity Bancshares’s payout ratio is 41.88%.

Insider Buying and Selling at Prosperity Bancshares

In related news, Director Ned S. Holmes sold 600 shares of the firm’s stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $66.84, for a total value of $40,104.00. Following the transaction, the director 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Harrison Stafford II sold 800 shares of Prosperity Bancshares stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $70.76, for a total value of $56,608.00. Following the completion of the sale, the director owned 107,937 shares of the company’s stock, valued at approximately $7,637,622.12. The trade was a 0.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 16,150 shares of company stock worth $1,129,356. Insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Mather Group LLC. bought a new stake in shares of Prosperity Bancshares during the third quarter worth approximately $26,000. Community Bank N.A. bought a new position in Prosperity Bancshares in the third quarter valued at approximately $29,000. Danske Bank A S acquired a new stake in Prosperity Bancshares during the 3rd quarter worth $40,000. Annis Gardner Whiting Capital Advisors LLC bought a new stake in shares of Prosperity Bancshares during the 3rd quarter valued at $42,000. Finally, Employees Retirement System of Texas bought a new stake in shares of Prosperity Bancshares during the 2nd quarter valued at $48,000. Institutional investors own 80.69% of the company’s stock.

Key Headlines Impacting Prosperity Bancshares

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

• Positive Sentiment: Q4 results beat estimates on higher net interest income (EPS slightly above consensus), which supports the bank’s earnings outlook and underpins value-focused investor interest. Zacks: PB Q4 Earnings
• Positive Sentiment: Hovde Group raised its price target to $77 and maintains an outperform view, signaling institutional confidence in medium-term upside and supporting buy-side interest. Finviz / Hovde note
• Neutral Sentiment: DA Davidson reiterated a “Neutral” rating with a $76 price target (roughly mid-teens upside from recent levels), which is a watch-and-wait signal that could cap near-term upside while suggesting fair value at current prices. AmericanBankingNews: DA Davidson
• Neutral Sentiment: Analyst coverage roundup and value-stock commentary (e.g., Benzinga, Zacks pieces) highlight PB’s attractive valuation metrics (low P/E, solid dividend history) — supportive for long-term investors but not an immediate catalyst. Benzinga: Analyst Insights
• Negative Sentiment: Announcement of the $2.0B stock-and-cash deal to acquire Stellar Bancorp triggered an initial share drop as investors digest dilution, integration risk and deal execution concerns. The transaction is a primary driver of recent volatility. TipRanks: Stellar merger
• Negative Sentiment: A law firm (Kahn Swick & Foti) has launched an investor probe into the adequacy of the Stellar sale process and price, adding legal/transactional risk and potential reputational/headline volatility. BusinessWire: Investor Alert
• Negative Sentiment: Insider selling by a director (small blocks disclosed via SEC filings) can be perceived negatively by some investors even though sizes are modest relative to holdings; it may add short-term selling pressure. SEC filing: insider sales

Prosperity Bancshares Company Profile

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.