Key Points
- Director Ned Holmes sold 600 Prosperity Bancshares shares for approximately $40,944, reducing his holdings by 1.54% to 38,300 shares.
- Prosperity Bancshares exceeded quarterly earnings and revenue estimates, reporting $1.62 in EPS and $391.25 million in revenue, with revenue up 25.9% year over year.
- The bank raised its quarterly dividend from $0.60 to $0.64 per share, equating to an annualized payout of $2.56 and a yield of about 3.7%; analysts’ consensus rating remains “Hold,” with a $77.55 price target.
Prosperity Bancshares, Inc. (NYSE:PB - Get Free Report) Director Ned Holmes sold 600 shares of the business's stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $68.24, for a total value of $40,944.00. Following the sale, the director owned 38,300 shares in the company, valued at $2,613,592. This represents a 1.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.
Prosperity Bancshares Price Performance
Shares of PB opened at $69.77 on Friday. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.01. The stock has a market cap of $7.04 billion, a PE ratio of 11.30, a PEG ratio of 0.76 and a beta of 0.66. Prosperity Bancshares, Inc. has a 12-month low of $62.28 and a 12-month high of $77.20. The business has a 50-day simple moving average of $69.89 and a two-hundred day simple moving average of $70.53.
Prosperity Bancshares (NYSE:PB - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The bank reported $1.62 EPS for the quarter, beating analysts' consensus estimates of $1.50 by $0.12. The firm had revenue of $391.25 million for 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% on a year-over-year basis. During the same period last year, the firm posted $1.42 earnings per share. Analysts anticipate that Prosperity Bancshares, Inc. will post 6.46 earnings per share for the current fiscal year.
Prosperity Bancshares Increases Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Tuesday, December 15th will be issued a $0.64 dividend. This is a boost from Prosperity Bancshares's previous quarterly dividend of $0.60. The ex-dividend date is Tuesday, December 15th. This represents a $2.56 dividend on an annualized basis and a yield of 3.7%. Prosperity Bancshares's dividend payout ratio (DPR) is 41.59%.
Trending Headlines about Prosperity Bancshares
Here are the key news stories impacting Prosperity Bancshares this week:
- Positive Sentiment: The board increased the quarterly dividend to $0.64 per share from $0.60, a 6.7% increase. The annualized payout is $2.56 per share, implying a yield of approximately 3.7%; the dividend is payable January 4, 2027, to shareholders of record December 15. The increase signals confidence in cash generation and may appeal to income-focused investors. Prosperity Bancshares Increases Common Stock Dividend
- Positive Sentiment: Analyst commentary points to potential earnings growth and a possible earnings beat in the upcoming report. This follows the bank’s prior quarterly results, when it exceeded consensus earnings and revenue estimates, supporting the view that operating performance remains solid. Prosperity Bancshares Earnings Expected to Grow
- Neutral Sentiment: Investment manager Brown Advisory added PB to its Mid-Cap Growth Strategy portfolio. The purchase provides institutional validation, although the report does not disclose the size or timing of the position. Brown Advisory Adds Prosperity Bancshares to Its Portfolio
- Negative Sentiment: Director Ned Holmes reported two sales totaling 1,100 shares for approximately $75,000. The transactions reduced reported holdings by less than 2% each, making them relatively small, but insider selling can weigh modestly on sentiment.
- Negative Sentiment: Prosperity has completed three bank acquisitions in seven months while raising its dividend. Commentary highlights a first-quarter increase in loan losses and questions whether the company can fund both expansion and shareholder returns without weakening credit quality or capital flexibility. Prosperity Bancshares Acquisitions and Dividend Analysis
Analysts Set New Price Targets
Several equities research analysts recently commented on the stock. Raymond James Financial upgraded shares of Prosperity Bancshares from a "market perform" rating to an "outperform" rating and set a $78.00 target price on the stock in a research report on Tuesday, October 6th. Weiss Ratings upgraded shares of Prosperity Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, October 9th. Morgan Stanley raised their price target on shares of Prosperity Bancshares from $80.00 to $81.00 and gave the company an "underweight" rating in a research note on Monday, September 28th. TD Cowen dropped their price target on shares of Prosperity Bancshares from $84.00 to $78.00 and set a "buy" rating for the company in a research note on Monday, October 5th. Finally, Cantor Fitzgerald cut their price target on shares of Prosperity Bancshares from $85.00 to $78.00 and set an "overweight" rating on the stock in a report on Wednesday, October 14th. Six investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $77.55.
Get Our Latest Research Report on Prosperity Bancshares
Institutional Investors Weigh In On Prosperity Bancshares
A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in shares of Prosperity Bancshares in the 2nd quarter valued at about $746,776,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of Prosperity Bancshares during the second quarter worth about $350,099,000. Algebris UK Ltd. bought a new position in shares of Prosperity Bancshares during the second quarter worth about $59,465,000. Bank of New York Mellon Corp bought a new position in shares of Prosperity Bancshares during the second quarter worth about $57,877,000. Finally, North Reef Capital Management LP lifted its stake in shares of Prosperity Bancshares by 149.0% in the first quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank's stock worth $74,427,000 after acquiring an additional 662,877 shares during the period. Institutional investors own 80.69% of the company's stock.
About Prosperity Bancshares
(
Get Free Report)
Prosperity Bancshares, Inc is a regional bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides banking and financial services to individuals, businesses, and public entities.
Prosperity Bank offers deposit products, commercial and consumer lending, mortgage and real estate lending, treasury management, online and mobile banking, and other traditional banking services. Its lending activities include financing for commercial businesses, agriculture, residential and commercial real estate, and personal needs.
Founded in 1983, Prosperity Bancshares has expanded primarily through organic growth and the acquisition of community banks.
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