Prosperity Bancshares (NYSE:PB) Price Target Raised to $80.00

Prosperity Bancshares (NYSE:PB) had its price objective boosted by Royal Bank Of Canada from $78.00 to $80.00 in a research note issued to investors on Thursday,Benzinga reports. Royal Bank Of Canada currently has a sector perform rating on the bank’s stock.

Several other research firms have also weighed in on PB. Wall Street Zen raised shares of Prosperity Bancshares from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. Weiss Ratings raised shares of Prosperity Bancshares from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, July 1st. Benchmark assumed coverage on shares of Prosperity Bancshares in a research report on Wednesday, June 24th. They issued a “hold” rating on the stock. Morgan Stanley reaffirmed an “equal weight” rating and set a $80.00 price objective (down from $85.00) on shares of Prosperity Bancshares in a research note on Monday, July 6th. Finally, Piper Sandler upped their price objective on shares of Prosperity Bancshares from $75.00 to $80.00 and gave the stock a “neutral” rating in a research note on Thursday. Five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Prosperity Bancshares currently has a consensus rating of “Hold” and an average target price of $78.36.

Prosperity Bancshares Stock Performance

Shares of NYSE:PB opened at $74.79 on Thursday. The business’s fifty day moving average price is $71.65 and its two-hundred day moving average price is $70.28. Prosperity Bancshares has a fifty-two week low of $61.06 and a fifty-two week high of $77.20. The stock has a market capitalization of $7.54 billion, a price-to-earnings ratio of 12.96, a price-to-earnings-growth ratio of 1.18 and a beta of 0.63. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.76.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings data 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 firm had revenue of $391.25 million during the quarter, compared to analyst estimates of $380.73 million. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The business’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same period in the prior year, the company posted $1.42 earnings per share. As a group, analysts predict that Prosperity Bancshares will post 6.37 EPS for the current fiscal year.

Prosperity Bancshares Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be paid a $0.60 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $2.40 dividend on an annualized basis and a yield of 3.2%. Prosperity Bancshares’s payout ratio is currently 41.59%.

Insider Activity at Prosperity Bancshares

In other news, Director Ned S. Holmes sold 500 shares of the firm’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $74.25, for a total value of $37,125.00. Following the completion of the sale, the director directly owned 72,115 shares in the company, valued at approximately $5,354,538.75. This trade represents a 0.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders sold a total of 12,100 shares of company stock worth $854,426 in the last quarter. 3.96% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in PB. Gator Capital Management LLC bought a new position in shares of Prosperity Bancshares in the fourth quarter worth about $2,051,000. Bull Harbor Capital LLC bought a new stake in shares of Prosperity Bancshares during the first quarter valued at approximately $1,019,000. First National Bank of Omaha bought a new stake in shares of Prosperity Bancshares during the fourth quarter valued at approximately $6,390,000. SummitTX Capital L.P. bought a new stake in shares of Prosperity Bancshares during the first quarter valued at approximately $3,878,000. Finally, Tudor Investment Corp ET AL acquired a new stake in shares of Prosperity Bancshares in the third quarter valued at approximately $4,882,000. Institutional investors and hedge funds own 80.69% of the company’s stock.

Prosperity Bancshares News Roundup

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.