Prosperity Bancshares (NYSE:PB) Raised to “Strong-Buy” at Stonex Financia

Prosperity Bancshares (NYSE:PB) was upgraded by equities researchers at Stonex Financia from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday, Zacks reports.

A number of other brokerages have also recently weighed in on PB. Weiss Ratings cut Prosperity Bancshares from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, October 23rd. Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Prosperity Bancshares in a research note on Thursday. Royal Bank Of Canada raised their target price on Prosperity Bancshares from $77.00 to $79.00 and gave the company a “sector perform” rating in a report on Thursday. Raymond James Financial raised Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $78.00 target price for the company in a research report on Tuesday, October 6th. Finally, Morgan Stanley increased their price target on shares of Prosperity Bancshares from $80.00 to $81.00 and gave the stock an “underweight” rating in a research report on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $78.36.

Prosperity Bancshares Stock Down 0.8%

Prosperity Bancshares stock opened at $71.98 on Thursday. Prosperity Bancshares has a fifty-two week low of $63.20 and a fifty-two week high of $77.20. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.77. The firm has a 50 day moving average price of $69.52 and a 200 day moving average price of $70.35. The company has a market capitalization 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.

Prosperity Bancshares (NYSE:PB) last announced its 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. Prosperity Bancshares had a return on equity of 7.68% and a net margin of 26.99%. The company had revenue of $495.70 million for the quarter, compared to analyst estimates of $491.49 million. During the same quarter in the previous year, the company earned $1.45 earnings per share. The firm’s quarterly revenue was up 56.0% compared to the same quarter last year. Research analysts expect that Prosperity Bancshares will post 6.46 earnings per share for the current year.

Insider Transactions at Prosperity Bancshares

In other news, Director Ned Holmes sold 500 shares of Prosperity Bancshares stock in a transaction dated Wednesday, October 28th. The stock was sold at an average price of $70.05, for a total value of $35,025.00. Following the completion of the transaction, the director owned 65,615 shares in the company, valued at approximately $4,596,330.75. This trade represents a 0.76% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Over the last quarter, insiders sold 13,800 shares of company stock valued at $973,234. 3.96% of the stock is owned by company insiders.

Institutional Trading of Prosperity Bancshares

A number of large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Prosperity Bancshares during the 2nd quarter worth about $746,776,000. Dimensional Fund Advisors LP lifted its stake in Prosperity Bancshares by 4.3% during the first quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank’s stock worth $331,142,000 after purchasing an additional 205,291 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Prosperity Bancshares during the second quarter worth approximately $350,099,000. North Reef Capital Management LP boosted its holdings in Prosperity Bancshares by 149.0% in the first quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank’s stock valued at $74,427,000 after purchasing an additional 662,877 shares in the last quarter. Finally, Algebris UK Ltd. acquired a new position in Prosperity Bancshares in the second quarter valued at approximately $59,465,000. 80.69% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Prosperity Bancshares

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.