Prosperity Bancshares (NYSE:PB) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Prosperity Bancshares (NYSE:PB) posted its quarterly earnings data on Wednesday. The bank reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.51 by $0.11, FiscalAI reports. The firm had revenue of $391.25 million for the quarter, compared to analyst estimates of $380.73 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. Prosperity Bancshares’s quarterly revenue was up 25.9% on a year-over-year basis. During the same period last year, the firm posted $1.42 EPS.

Prosperity Bancshares Price Performance

Shares of PB stock traded up $0.03 during midday trading on Friday, reaching $74.84. 188,937 shares of the company traded hands, compared to its average volume of 1,160,392. The firm’s 50 day simple moving average is $71.53 and its two-hundred day simple moving average is $70.25. The firm has a market cap of $7.55 billion, a PE ratio of 12.97, a price-to-earnings-growth ratio of 1.19 and a beta of 0.63. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.76. Prosperity Bancshares has a 1-year low of $61.06 and a 1-year high of $77.20.

Prosperity Bancshares Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Tuesday, September 15th. Prosperity Bancshares’s dividend payout ratio (DPR) is presently 41.59%.

Insider Buying and Selling at Prosperity Bancshares

In related news, Director Ned S. Holmes sold 500 shares of Prosperity Bancshares stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $74.25, for a total transaction of $37,125.00. Following the completion of the transaction, the director directly owned 72,115 shares of the company’s stock, valued at approximately $5,354,538.75. The trade was a 0.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. In the last 90 days, insiders sold 12,100 shares of company stock valued at $854,426. Corporate insiders own 3.96% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in PB. AQR Capital Management LLC boosted its position in shares of Prosperity Bancshares by 175.1% in the 2nd quarter. AQR Capital Management LLC now owns 2,383,162 shares of the bank’s stock worth $167,393,000 after buying an additional 1,516,939 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC increased its holdings in Prosperity Bancshares by 910.4% during the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 1,311,051 shares of the bank’s stock valued at $90,607,000 after acquiring an additional 1,181,295 shares in the last quarter. Artisan Partners Limited Partnership purchased a new position in Prosperity Bancshares during the 4th quarter valued at about $44,822,000. First Trust Advisors LP raised its position in Prosperity Bancshares by 119.3% during the fourth quarter. First Trust Advisors LP now owns 900,247 shares of the bank’s stock worth $62,216,000 after acquiring an additional 489,798 shares during the last quarter. Finally, North Reef Capital Management LP purchased a new stake in shares of Prosperity Bancshares in the fourth quarter valued at about $30,754,000. Hedge funds and other institutional investors own 80.69% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. TD Cowen reaffirmed a “buy” rating on shares of Prosperity Bancshares in a report on Friday. Weiss Ratings upgraded Prosperity Bancshares from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday. Cantor Fitzgerald reissued an “overweight” rating and set a $80.00 target price on shares of Prosperity Bancshares in a research note on Tuesday, June 23rd. Benchmark initiated coverage on Prosperity Bancshares in a report on Wednesday, June 24th. They issued a “hold” rating for the company. Finally, Morgan Stanley reaffirmed an “equal weight” rating and set a $80.00 price objective (down from $85.00) on shares of Prosperity Bancshares in a report on Monday, July 6th. Five investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $77.55.

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.