Prosperity Bancshares Inc. (NYSE:PB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Thursday.
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.”
A number of other brokerages have also recently commented on PB. SunTrust Banks Inc. started coverage on shares of Prosperity Bancshares in a research note on Thursday, October 6th. They issued a “neutral” rating on the stock. Deutsche Bank AG raised their price target on shares of Prosperity Bancshares from $54.00 to $59.00 and gave the stock a “hold” rating in a research note on Tuesday, October 11th. FBR & Co raised shares of Prosperity Bancshares from a “market perform” rating to an “outperform” rating and raised their price target for the stock from $55.00 to $60.00 in a research note on Tuesday, October 11th. Hovde Group raised shares of 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. Finally, Wedbush initiated coverage on shares of Prosperity Bancshares in a research note on Thursday, October 6th. They set a “neutral” rating and a $54.00 price target on the stock. Two investment 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. Prosperity Bancshares presently has an average rating of “Hold” and a consensus target price of $52.08.
Prosperity Bancshares (NYSE:PB) opened at 54.39 on Thursday. The firm has a market cap of $3.78 billion, a PE ratio of 13.70 and a beta of 1.29. Prosperity Bancshares has a one year low of $33.57 and a one year high of $57.04. The company has a 50 day moving average of $54.45 and a 200-day moving average of $51.77.
Prosperity Bancshares (NYSE:PB) last issued its quarterly earnings data on Wednesday, July 27th. The company reported $0.98 EPS for the quarter, missing the Zacks’ consensus estimate of $0.99 by $0.01. Prosperity Bancshares had a net margin of 34.93% and a return on equity of 7.99%. During the same quarter last year, the firm earned $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 firm also recently declared 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 of this dividend was Wednesday, September 14th. This represents a $1.20 annualized dividend and a yield of 2.21%. Prosperity Bancshares’s payout ratio is 30.15%.
In other Prosperity Bancshares news, Director Robert H. Steelhammer sold 2,900 shares of the stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $54.00, for a total value of $156,600.00. Following the completion of the sale, the director now owns 160,800 shares of the company’s stock, valued at $8,683,200. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Perry Mueller, Jr. sold 13,536 shares of the stock in a transaction that occurred on Thursday, August 25th. The shares were sold at an average price of $54.00, for a total transaction of $730,944.00. Following the completion of the sale, the director now directly owns 6,723 shares of the company’s stock, valued at approximately $363,042. The disclosure for this sale can be found here. 4.90% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently modified their holdings of PB. Glenmede Trust Co. NA increased its stake 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 valued at $151,000 after buying an additional 145 shares during the period. LS Investment Advisors LLC increased its stake 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 valued at $200,000 after buying an additional 1,677 shares during the period. Fox Run Management L.L.C. purchased a new stake in shares of Prosperity Bancshares during the second quarter valued at about $214,000. Salzhauer Michael purchased a new stake in shares of Prosperity Bancshares during the second quarter valued at about $226,000. Finally, LaSalle Street Capital Management LLC increased its stake 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 valued at $230,000 after buying an additional 152 shares during the period. 80.30% of the stock is 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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