Insider Selling: Prosperity Bancshares (NYSE:PB) Director Sells 600 Shares of Stock

Prosperity Bancshares, Inc. (NYSE:PB) Director Ned Holmes sold 600 shares of the company’s stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $66.67, for a total transaction of $40,002.00. Following the completion of the sale, the director directly owned 42,100 shares in the company, valued at approximately $2,806,807. This represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link.

Prosperity Bancshares Stock Performance

Prosperity Bancshares stock traded up $1.30 during mid-day trading on Thursday, reaching $68.41. The stock had a trading volume of 2,405,313 shares, compared to its average volume of 1,127,501. The stock’s 50-day simple moving average is $70.86 and its 200-day simple moving average is $68.31. Prosperity Bancshares, Inc. has a fifty-two week low of $61.06 and a fifty-two week high of $81.53. The firm has a market capitalization of $6.50 billion, a PE ratio of 12.19, a price-to-earnings-growth ratio of 0.95 and a beta of 0.68.

Prosperity Bancshares (NYSE:PB) last released its earnings results on Wednesday, January 28th. The bank reported $1.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.45 by $0.01. The company had revenue of $317.73 million during the quarter, compared to analyst estimates of $319.30 million. Prosperity Bancshares had a return on equity of 7.06% and a net margin of 30.28%.Prosperity Bancshares’s quarterly revenue was down 5.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.37 earnings per share. On average, research analysts forecast that Prosperity Bancshares, Inc. will post 5.83 earnings per share for the current fiscal year.

Prosperity Bancshares Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a $0.60 dividend. The ex-dividend date is Friday, March 13th. This represents a $2.40 annualized dividend and a yield of 3.5%. Prosperity Bancshares’s dividend payout ratio (DPR) is 42.78%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of Prosperity Bancshares by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 10,256,927 shares of the bank’s stock valued at $708,856,000 after purchasing an additional 140,035 shares in the last quarter. State Street Corp increased its holdings in Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock valued at $373,231,000 after buying an additional 343,062 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in Prosperity Bancshares by 0.6% during the third quarter. Dimensional Fund Advisors LP now owns 4,784,022 shares of the bank’s stock valued at $317,416,000 after buying an additional 28,994 shares in the last quarter. AQR Capital Management LLC lifted its holdings in Prosperity Bancshares by 43.6% during the 3rd quarter. AQR Capital Management LLC now owns 3,421,408 shares of the bank’s stock worth $226,531,000 after buying an additional 1,038,246 shares during the last quarter. Finally, American Century Companies Inc. grew its position in shares of Prosperity Bancshares by 48.7% in the 3rd quarter. American Century Companies Inc. now owns 2,122,031 shares of the bank’s stock worth $140,797,000 after acquiring an additional 695,114 shares in the last quarter. 80.69% of the stock is currently owned by institutional investors.

Key Stories Impacting Prosperity Bancshares

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Q4 earnings slightly beat expectations — EPS $1.46 vs. $1.45 consensus, which supports the bank’s core profitability narrative. Read More.
• Positive Sentiment: Deal with Stellar Bancorp ( ~$2.0B, stock + cash) expands Prosperity’s Texas footprint and will make it the second?largest Texas bank by deposits — a strategic scale play that can lift deposit share and cross?sell opportunities. Read More.
• Positive Sentiment: Analyst support: Hovde raised its price target to $77 and kept an outperform stance, signaling confidence in deal benefits and earnings upside. Read More.
• Neutral Sentiment: DA Davidson reaffirmed a neutral rating with a $76 target — implies upside from current levels but stops short of a buy endorsement. Read More.
• Neutral Sentiment: Analyst roundup pieces provide mixed takes (some value/efficiency arguments) — useful background but not a single directional catalyst. Read More.
• Negative Sentiment: Initial market reaction to the Stellar announcement caused a sharp intraday sell?off (shares previously fell ~8%), reflecting concerns about deal dilution, integration risk and execution. Read More.
• Negative Sentiment: Shareholder/legal risk: a law firm is investigating the adequacy of the Stellar sale price/process, which could prolong uncertainty or trigger litigation. Read More.
• Negative Sentiment: Revenue was down ~5.9% y/y in the quarter despite the EPS beat, highlighting some topline pressure that investors should monitor post?deal. Read More.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Royal Bank Of Canada cut their price target on Prosperity Bancshares from $78.00 to $72.00 and set a “sector perform” rating for the company in a research note on Friday, October 10th. Raymond James Financial cut Prosperity Bancshares from an “outperform” rating to a “market perform” rating in a research note on Wednesday, January 7th. Piper Sandler downgraded Prosperity Bancshares from an “overweight” rating to a “neutral” rating and dropped their price target for the stock from $77.00 to $74.00 in a research report on Thursday. DA Davidson reissued a “neutral” rating and set a $76.00 target price on shares of Prosperity Bancshares in a research report on Thursday. Finally, Barclays set a $75.00 target price on Prosperity Bancshares in a report on Thursday. Seven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, Prosperity Bancshares has a consensus rating of “Moderate Buy” and a consensus target price of $79.31.

Prosperity Bancshares Company Profile

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.