Prosperity Bancshares, Inc. (NYSE:PB) Plans Dividend Increase – $0.64 Per Share

Prosperity Bancshares, Inc. (NYSE:PB) announced a quarterly dividend on Tuesday, October 20th. Investors of record on Tuesday, December 15th will be paid a dividend of $0.64 per share by the bank on Monday, January 4th. This represents a $2.56 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Tuesday, December 15th. This is a 6.7% increase from Prosperity Bancshares’s previous quarterly dividend of $0.60.

Prosperity Bancshares has a dividend payout ratio of 37.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Prosperity Bancshares to earn $7.36 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 32.6%.

Prosperity Bancshares Price Performance

Prosperity Bancshares stock opened at $68.93 on Thursday. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $6.95 billion, a PE ratio of 11.87, a price-to-earnings-growth ratio of 0.76 and a beta of 0.66. The firm has a 50-day moving average price of $69.98 and a 200-day moving average price of $70.52. Prosperity Bancshares has a 12-month low of $62.28 and a 12-month high of $77.20.

Prosperity Bancshares (NYSE:PB) last issued its earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.12. The company had revenue of $391.25 million for the quarter, compared to analysts’ expectations of $380.73 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. The firm’s quarterly revenue was up 25.9% on a year-over-year basis. During the same period in the prior year, the business earned $1.42 EPS. As a group, equities research analysts forecast that Prosperity Bancshares will post 6.46 EPS for the current year.

Insider Activity

In other news, Director Ned Holmes sold 600 shares of Prosperity Bancshares stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $74.26, for a total value of $44,556.00. Following the completion of the transaction, the director owned 39,500 shares in the company, valued at $2,933,270. This trade represents a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In the last quarter, insiders sold 12,700 shares of company stock valued at $902,833. 3.96% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PB. Bull Harbor Capital LLC bought a new stake in shares of Prosperity Bancshares in the 1st quarter valued at about $1,019,000. Bank of New York Mellon Corp acquired a new stake in Prosperity Bancshares during the 2nd quarter worth about $57,877,000. First National Bank of Omaha acquired a new position in Prosperity Bancshares in the 2nd quarter worth approximately $12,316,000. SummitTX Capital L.P. purchased a new position in shares of Prosperity Bancshares during the first quarter worth $3,878,000. Finally, Bank of America Corp DE boosted its stake in shares of Prosperity Bancshares by 11.6% in the first quarter. Bank of America Corp DE now owns 487,616 shares of the bank’s stock worth $32,758,000 after buying an additional 50,575 shares during the last quarter. Institutional investors own 80.69% of the company’s stock.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc is a regional bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides banking and financial services to individuals, businesses, and public entities.

Prosperity Bank offers deposit products, commercial and consumer lending, mortgage and real estate lending, treasury management, online and mobile banking, and other traditional banking services. Its lending activities include financing for commercial businesses, agriculture, residential and commercial real estate, and personal needs.

Founded in 1983, Prosperity Bancshares has expanded primarily through organic growth and the acquisition of community banks.