Prosperity Bancshares (NYSE:PB) Lowered to “Neutral” at DA Davidson

DA Davidson lowered shares of Prosperity Bancshares (NYSE:PB) from a buy rating to a neutral rating in a research note released on Tuesday, Marketbeat Ratings reports. They currently have $78.00 price target on the bank’s stock, down from their prior price target of $80.00. DA Davidson also issued estimates for Prosperity Bancshares’ FY2025 earnings at $5.64 EPS.

A number of other equities research analysts have also recently weighed in on the stock. StockNews.com cut shares of Prosperity Bancshares from a “hold” rating to a “sell” rating in a research report on Wednesday, August 28th. Hovde Group boosted their target price on Prosperity Bancshares from $80.50 to $82.50 and gave the company an “outperform” rating in a report on Monday, August 26th. Compass Point raised their price target on Prosperity Bancshares from $73.00 to $80.00 and gave the stock a “buy” rating in a research note on Friday, July 26th. Royal Bank of Canada boosted their price objective on Prosperity Bancshares from $70.00 to $74.00 and gave the company a “sector perform” rating in a research note on Thursday, July 25th. Finally, Barclays raised their target price on shares of Prosperity Bancshares from $70.00 to $75.00 and gave the stock an “equal weight” rating in a research report on Friday, September 27th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, Prosperity Bancshares currently has an average rating of “Moderate Buy” and a consensus target price of $77.27.

Prosperity Bancshares Stock Performance

Shares of NYSE PB opened at $72.96 on Tuesday. The stock’s 50-day simple moving average is $71.96 and its 200-day simple moving average is $66.32. The firm has a market capitalization of $6.95 billion, a PE ratio of 15.97, a price-to-earnings-growth ratio of 1.53 and a beta of 0.89. Prosperity Bancshares has a fifty-two week low of $49.60 and a fifty-two week high of $74.96.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings data on Wednesday, July 24th. The bank reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.20 by $0.02. The company had revenue of $458.95 million for the quarter, compared to analysts’ expectations of $290.06 million. Prosperity Bancshares had a net margin of 25.10% and a return on equity of 6.32%. During the same quarter last year, the company earned $1.21 earnings per share. On average, sell-side analysts forecast that Prosperity Bancshares will post 5.03 earnings per share for the current fiscal year.

Prosperity Bancshares Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 2nd. Investors of record on Friday, December 13th will be issued a dividend of $0.58 per share. This is a boost from Prosperity Bancshares’s previous quarterly dividend of $0.56. This represents a $2.32 annualized dividend and a yield of 3.18%. The ex-dividend date is Friday, December 13th. Prosperity Bancshares’s dividend payout ratio is currently 49.02%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of PB. GAMMA Investing LLC raised its holdings in Prosperity Bancshares by 59.6% during the second quarter. GAMMA Investing LLC now owns 474 shares of the bank’s stock worth $29,000 after purchasing an additional 177 shares during the last quarter. Retirement Systems of Alabama boosted its position in shares of Prosperity Bancshares by 0.3% in the 1st quarter. Retirement Systems of Alabama now owns 117,692 shares of the bank’s stock worth $7,742,000 after buying an additional 319 shares in the last quarter. Inspire Investing LLC boosted its position in shares of Prosperity Bancshares by 6.1% in the 2nd quarter. Inspire Investing LLC now owns 5,739 shares of the bank’s stock worth $351,000 after buying an additional 328 shares in the last quarter. Fifth Third Bancorp grew its stake in Prosperity Bancshares by 47.6% in the 2nd quarter. Fifth Third Bancorp now owns 1,030 shares of the bank’s stock valued at $63,000 after acquiring an additional 332 shares during the last quarter. Finally, PNC Financial Services Group Inc. increased its holdings in Prosperity Bancshares by 10.1% during the 4th quarter. PNC Financial Services Group Inc. now owns 3,855 shares of the bank’s stock valued at $261,000 after acquiring an additional 355 shares in the last quarter. Institutional investors and hedge funds own 80.69% of the company’s stock.

About Prosperity Bancshares

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery.