Wall Street Zen Upgrades Prosperity Bancshares (NYSE:PB) to Hold

Prosperity Bancshares (NYSE:PB) was upgraded by research analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a note issued to investors on Saturday.

Several other research firms have also commented on PB. Piper Sandler boosted their price target on Prosperity Bancshares from $75.00 to $80.00 and gave the stock a “neutral” rating in a research report on Thursday. Royal Bank Of Canada lifted their target price on Prosperity Bancshares from $78.00 to $80.00 and gave the company a “sector perform” rating in a research note on Thursday. Weiss Ratings upgraded shares of Prosperity Bancshares from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday. Citigroup increased their price target on shares of Prosperity Bancshares from $75.00 to $79.00 and gave the company a “neutral” rating in a research report on Friday. Finally, TD Cowen raised their price target on shares of Prosperity Bancshares from $82.00 to $84.00 and gave the company a “buy” rating in a report on Friday. Five equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Prosperity Bancshares has a consensus rating of “Hold” and an average target price of $78.36.

Prosperity Bancshares Price Performance

NYSE PB opened at $74.79 on Friday. The company has a market cap of $7.54 billion, a PE ratio of 12.96, a P/E/G ratio of 1.18 and a beta of 0.64. The firm’s 50 day moving average price is $71.65 and its 200-day moving average price is $70.28. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.75 and a current ratio of 0.75. Prosperity Bancshares has a 52-week low of $61.06 and a 52-week high of $77.20.

Prosperity Bancshares (NYSE:PB) last issued its quarterly earnings data on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, topping analysts’ consensus estimates of $1.50 by $0.12. The company had revenue of $391.25 million during the quarter, compared to the consensus estimate of $380.73 million. Prosperity Bancshares had a net margin of 29.95% and a return on equity of 7.39%. Prosperity Bancshares’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.42 earnings per share. Sell-side analysts forecast that Prosperity Bancshares will post 6.37 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Ned S. Holmes sold 500 shares of the stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $74.25, for a total value of $37,125.00. Following the transaction, the director owned 72,115 shares in the company, valued at approximately $5,354,538.75. This represents a 0.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders sold a total of 12,100 shares of company stock valued at $854,426 in the last 90 days. 3.96% of the stock is owned by corporate insiders.

Institutional Trading of Prosperity Bancshares

Large investors have recently made changes to their positions in the business. Gator Capital Management LLC acquired a new position in Prosperity Bancshares in the 4th quarter worth about $2,051,000. Bull Harbor Capital LLC acquired a new stake in Prosperity Bancshares in the first quarter valued at approximately $1,019,000. First National Bank of Omaha acquired a new stake in Prosperity Bancshares in the fourth quarter valued at approximately $6,390,000. SummitTX Capital L.P. purchased a new stake in shares of Prosperity Bancshares in the first quarter valued at approximately $3,878,000. Finally, Tudor Investment Corp ET AL purchased a new stake in shares of Prosperity Bancshares in the third quarter valued at approximately $4,882,000. 80.69% of the stock is 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 Q2 earnings and revenue growth: Prosperity Bancshares reported adjusted earnings of $1.62 per share, exceeding the $1.51 consensus estimate, while revenue rose 25.9% year over year to $391.26 million. Results benefited from contributions from the Stellar Bancorp acquisition and the absence of a credit-loss provision. PB’s Q2 Earnings Beat Estimates as Revenues Rise, Stellar Deal Closed
• Positive Sentiment: Merger upside highlighted: Management’s earnings call emphasized the potential benefits of completing the Stellar Bancorp buyout, including increased scale and revenue contributions. Investors may view the integration as a source of additional earnings growth. Prosperity Bancshares Earnings Call Highlights Merger Upside
• Positive Sentiment: Price targets raised: Royal Bank of Canada increased its target from $78 to $80, while Piper Sandler raised its target from $75 to $80. Both targets indicate approximately 7% potential upside from the referenced trading level, although neither firm assigned a bullish rating.
• Neutral Sentiment: Dividend appeal: A recent analysis points to Prosperity Bancshares’ potential as a dividend stock, which could attract income-focused investors, though the article does not identify a new dividend increase or policy change. This is Why Prosperity Bancshares Is a Great Dividend Stock
• Negative Sentiment: Insider selling: Director Ned S. Holmes sold a combined 1,100 shares worth roughly $81,700. The sales reduced his holdings by less than 2.2% overall, making the signal relatively minor but modestly negative.

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.