Zacks Investment Research upgraded shares of Prosperity Bancshares Inc. (NYSE:PB) from a sell rating to a hold rating in a research note released on Thursday morning.
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 subject of a number of other research reports. Wedbush assumed coverage on Prosperity Bancshares in a research report on Thursday, October 6th. They issued a neutral rating and a $54.00 target price for the company. Hovde Group raised 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. FBR & Co raised Prosperity Bancshares from a market perform rating to an outperform rating and lifted their price target for the stock from $55.00 to $60.00 in a research note on Tuesday, October 11th. Deutsche Bank AG lifted 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. Finally, SunTrust Banks Inc. began coverage on Prosperity Bancshares in a research note on Thursday, October 6th. They issued a neutral rating on the stock. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have assigned a buy rating to the stock. The company has a consensus rating of Hold and a consensus price target of $52.08.
Prosperity Bancshares (NYSE:PB) opened at 53.99 on Thursday. The firm’s 50 day moving average price is $54.43 and its 200-day moving average price is $51.91. The company has a market capitalization of $3.75 billion, a PE ratio of 13.60 and a beta of 1.28. Prosperity Bancshares has a 12-month low of $33.57 and a 12-month high of $57.04.
Prosperity Bancshares (NYSE:PB) last released its earnings results on Wednesday, July 27th. The company reported $0.98 earnings per share for the quarter, missing the Zacks’ 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 prior year, the company posted $1.03 earnings per share. On average, equities analysts anticipate that Prosperity Bancshares will post $3.94 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Friday, September 16th were paid a $0.30 dividend. The ex-dividend date was Wednesday, September 14th. This represents a $1.20 annualized dividend and a yield of 2.22%. Prosperity Bancshares’s payout ratio is 30.15%.
In other Prosperity Bancshares news, Director Robert H. Steelhammer sold 2,900 shares of the business’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 sale, the director now directly owns 160,800 shares of the company’s stock, valued at $8,683,200. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Perry Mueller, Jr. sold 13,536 shares of the business’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 sale, 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.
Large investors have recently added to or reduced their stakes in the company. Glenmede Trust Co. NA increased its stake in Prosperity Bancshares by 5.1% in the second quarter. Glenmede Trust Co. NA now owns 2,986 shares of the company’s stock valued at $151,000 after buying an additional 145 shares during the period. LS Investment Advisors LLC increased its stake in Prosperity Bancshares by 74.6% in the second quarter. LS Investment Advisors LLC now owns 3,926 shares of the company’s stock valued at $200,000 after buying an additional 1,677 shares during the period. Fox Run Management L.L.C. bought a new stake in Prosperity Bancshares during the second quarter valued at approximately $214,000. Salzhauer Michael bought a new stake in Prosperity Bancshares during the second quarter valued at approximately $226,000. Finally, LaSalle Street Capital Management LLC increased its stake in Prosperity Bancshares by 3.5% in the second quarter. LaSalle Street Capital Management LLC now owns 4,507 shares of the company’s stock valued at $230,000 after buying an additional 152 shares during the period. 80.26% of the stock is currently owned by institutional investors and hedge funds.
Prosperity Bancshares Company Profile
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.