Prosperity Bancshares Inc. (PB) Rating Increased to Hold at Zacks Investment Research
According to Zacks, “Estimates have been stable lately ahead of Prosperity Bancshares’ third-quarter 2016 earnings release. Notably, the company has a positive record of earnings surprises in recent quarters. Further, the company’s organic growth story remains healthy, driven by a steady rise in loan and deposit balances. Moreover, given the strong balance sheet position, the company is well positioned to expand further through acquisitions. In addition, improving net interest margin and impressive credit quality continue to support its financials. However, mounting operating expenses remain a major headwind given the company’s investment in franchise. Also, as the company looks forward to further inorganic growth, merger-related charges will lead to an increase in overall expenses. Additionally, exposure in energy sector loans is expected to hurt its credit quality in the near term.”
PB has been the topic of several other research reports. Hovde Group upgraded Prosperity Bancshares from a market perform rating to an outperform rating and set a $54.00 price target on the stock in a research note on Wednesday, June 29th. Deutsche Bank AG upped their price target on Prosperity Bancshares from $54.00 to $59.00 and gave the stock a hold rating in a research note on Tuesday, October 11th. SunTrust Banks Inc. initiated coverage on Prosperity Bancshares in a research note on Thursday, October 6th. They issued a neutral rating on the stock. FBR & Co upgraded Prosperity Bancshares from a market perform rating to an outperform rating and upped their price target for the stock from $55.00 to $60.00 in a research note on Tuesday, October 11th. Finally, Wedbush initiated coverage on Prosperity Bancshares in a research note on Thursday, October 6th. They issued a neutral rating and a $54.00 price target on the stock. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have issued a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus price target of $52.08.
Shares of Prosperity Bancshares (NYSE:PB) opened at 54.69 on Thursday. The company’s 50-day moving average price is $54.42 and its 200-day moving average price is $51.97. Prosperity Bancshares has a one year low of $33.57 and a one year high of $57.04. The company has a market capitalization of $3.80 billion, a price-to-earnings ratio of 13.78 and a beta of 1.28.
Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings results on Wednesday, July 27th. The company reported $0.98 earnings per share for the quarter, missing the consensus estimate of $0.99 by $0.01. Prosperity Bancshares had a return on equity of 7.99% and a net margin of 34.93%. During the same period in the previous year, the company posted $1.03 earnings per share. On average, equities research analysts predict that Prosperity Bancshares will post $3.94 earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Friday, September 16th were issued a $0.30 dividend. The ex-dividend date was Wednesday, September 14th. This represents a $1.20 dividend on an annualized basis and a yield of 2.19%. Prosperity Bancshares’s dividend payout ratio is currently 30.15%.
In related news, Director Robert H. Steelhammer sold 2,900 shares of the firm’s stock in a transaction on Monday, September 12th. The stock was sold at an average price of $54.00, for a total value of $156,600.00. Following the transaction, the director now directly owns 160,800 shares of the company’s stock, valued at approximately $8,683,200. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Perry Mueller, Jr. sold 13,536 shares of the firm’s stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $54.00, for a total value of $730,944.00. Following the completion of the transaction, the director now directly owns 6,723 shares in the company, valued at $363,042. The disclosure for this sale can be found here. 4.90% of the stock is owned by corporate insiders.
Institutional investors have recently made changes to their positions in the company. Glenmede Trust Co. NA boosted its position in shares of Prosperity Bancshares by 5.1% in the second quarter. Glenmede Trust Co. NA now owns 2,986 shares of the company’s stock worth $151,000 after buying an additional 145 shares in the last quarter. LS Investment Advisors LLC boosted its position in shares of Prosperity Bancshares by 74.6% in the second quarter. LS Investment Advisors LLC now owns 3,926 shares of the company’s stock worth $200,000 after buying an additional 1,677 shares in the last quarter. Fox Run Management L.L.C. bought a new position in shares of Prosperity Bancshares during the second quarter worth approximately $214,000. Salzhauer Michael bought a new position in shares of Prosperity Bancshares during the second quarter worth approximately $226,000. Finally, LaSalle Street Capital Management LLC boosted its position in shares of Prosperity Bancshares by 3.5% in the second quarter. LaSalle Street Capital Management LLC now owns 4,507 shares of the company’s stock worth $230,000 after buying an additional 152 shares in the last quarter. 80.26% of the stock is currently owned by institutional investors.
About Prosperity Bancshares
Prosperity Bancshares, Inc is a financial holding company. The Company operates through its bank subsidiary, Prosperity Bank (the Bank). The Bank provides a range of financial products and services to small and medium-sized businesses and consumers. The Company’s additional products and services include trust services, brokerage, mortgage lending, credit card and independent sales organization (ISO) sponsorship operations.
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