Prosperity Bancshares (NYSE:PB) Upgraded to Strong-Buy at Stonex Financia

Stonex Financia upgraded shares of Prosperity Bancshares (NYSE:PB) from a hold rating to a strong-buy rating in a research note issued to investors on Thursday,Zacks reports.

Other equities analysts also recently issued reports about the company. Barclays raised their price objective on Prosperity Bancshares from $68.00 to $70.00 and gave the company an “underweight” rating in a research note on Monday, October 5th. Royal Bank Of Canada boosted their target price on Prosperity Bancshares from $77.00 to $79.00 and gave the stock a “sector perform” rating in a research report on Thursday. Stephens boosted their target price on Prosperity Bancshares from $85.00 to $87.00 and gave the stock an “overweight” rating in a research report on Thursday. TD Cowen upped their target price on Prosperity Bancshares from $78.00 to $80.00 and gave the company a “buy” rating in a report on Thursday. Finally, Weiss Ratings lowered Prosperity Bancshares from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $78.36.

Prosperity Bancshares Trading Down 0.8%

Shares of Prosperity Bancshares stock opened at $71.98 on Thursday. Prosperity Bancshares has a 12-month low of $63.20 and a 12-month high of $77.20. The company has a current ratio of 0.77, a quick ratio of 0.75 and a debt-to-equity ratio of 0.01. The stock has a market cap of $7.26 billion, a PE ratio of 13.09, a price-to-earnings-growth ratio of 0.80 and a beta of 0.66. The company has a 50-day moving average of $69.52 and a two-hundred day moving average of $70.35.

Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings results on Wednesday, October 28th. The bank reported $1.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.35 by $0.32. The company had revenue of $495.70 million during the quarter, compared to the consensus estimate of $491.49 million. Prosperity Bancshares had a net margin of 26.99% and a return on equity of 7.68%. The company’s revenue for the quarter was up 56.0% on a year-over-year basis. During the same period last year, the firm earned $1.45 EPS. On average, research analysts anticipate that Prosperity Bancshares will post 6.46 EPS for the current fiscal year.

Prosperity Bancshares Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Shareholders of record on Tuesday, December 15th will be issued a $0.64 dividend. This represents a $2.56 annualized dividend and a dividend yield of 3.6%. This is a boost from Prosperity Bancshares’s previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Tuesday, December 15th. Prosperity Bancshares’s payout ratio is currently 43.64%.

Insider Activity

In other news, Director Ned Holmes sold 500 shares of the stock in a transaction that occurred on Wednesday, October 28th. The shares were sold at an average price of $70.05, for a total value of $35,025.00. Following the sale, the director directly owned 65,615 shares in the company, valued at $4,596,330.75. This represents a 0.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold a total of 13,800 shares of company stock valued at $973,234 over the last quarter. 3.96% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

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

Prosperity Bancshares News Summary

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

• Positive Sentiment: Strong Q3 results support the growth outlook. Prosperity Bancshares reported quarterly EPS of $1.67, exceeding the $1.35 consensus estimate, while revenue of $495.7 million also topped expectations. Revenue increased 56% year over year, and management highlighted approximately 41% asset growth. The results have raised expectations for margin-driven growth. Prosperity Bancshares Q3 Earnings Lift Hopes For Margin Driven Growth
• Positive Sentiment: StoneX upgraded PB to Buy. The upgrade indicates that the analyst sees sufficient upside in the bank’s earnings, balance-sheet expansion, or valuation following the quarterly report. Prosperity Bancshares trades higher as StoneX upgrades to Buy
• Positive Sentiment: Analysts raised their targets. Royal Bank of Canada increased its target from $77 to $79, while Citigroup lifted its target from $77 to $78. Although both firms retained relatively cautious “sector perform” or “neutral” ratings, the higher targets imply additional potential upside from the referenced share price. Royal Bank of Canada recommendations Citigroup recommendations
• Neutral Sentiment: Piper Sandler lowered its target but maintained a neutral rating. The target moved from $80 to $78, signaling more restrained expectations even though the revised target remains above the referenced trading level. Piper Sandler recommendations
• Neutral Sentiment: Late-trading European quotation provided little new fundamental information. PB was quoted at EUR 64.75 in late trading, but the item did not identify a new company development or catalyst. Prosperity Bancshares stock quoted at EUR 64.75 in late trading
• Negative Sentiment: A director sold a combined 1,100 shares. Ned Holmes sold shares worth approximately $77,000 in two transactions. The sales were small relative to his remaining holdings, but insider selling can create a minor overhang for sentiment. SEC insider ownership filing

About Prosperity Bancshares

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.