Prosperity Bancshares Inc. (PB) Upgraded to “Hold” at Zacks Investment Research
Prosperity Bancshares Inc. (NYSE:PB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors 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.”
Several other research analysts have also recently commented on the company. Deutsche Bank AG increased their price target on Prosperity Bancshares from $54.00 to $59.00 and gave the company a “hold” rating in a research report on Tuesday. FBR & Co raised Prosperity Bancshares from a “market perform” rating to an “outperform” rating and increased their price target for the company from $55.00 to $60.00 in a research report on Tuesday. SunTrust Banks Inc. began coverage on Prosperity Bancshares in a research report on Thursday, October 6th. They set a “neutral” rating for the company. Wedbush began coverage on Prosperity Bancshares in a research report on Thursday, October 6th. They set a “neutral” rating and a $54.00 price target for the company. Finally, Hovde Group raised Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $54.00 price target for the company in a research report on Wednesday, June 29th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $52.08.
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Prosperity Bancshares (NYSE:PB) traded down 3.95% during mid-day trading on Thursday, hitting $53.28. The stock had a trading volume of 132,262 shares. The firm has a market capitalization of $3.70 billion, a price-to-earnings ratio of 13.42 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 stock’s 50 day moving average price is $54.43 and its 200 day moving average price is $51.69.
Prosperity Bancshares (NYSE:PB) last issued its quarterly earnings results on Wednesday, July 27th. The company reported $0.98 EPS for the quarter, missing the 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 period last year, the firm earned $1.03 EPS. Analysts forecast that Prosperity Bancshares will post $3.94 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Friday, September 16th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Wednesday, September 14th. This represents a $1.20 dividend on an annualized basis and a yield of 2.16%. Prosperity Bancshares’s dividend payout ratio (DPR) is presently 30.15%.
In other Prosperity Bancshares news, Director Perry Mueller, Jr. sold 13,536 shares of the firm’s stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $54.00, for a total transaction of $730,944.00. Following the transaction, the director now owns 6,723 shares in the company, valued at approximately $363,042. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Robert H. Steelhammer sold 2,900 shares of the firm’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 transaction, the director now owns 160,800 shares in the company, valued at approximately $8,683,200. The disclosure for this sale can be found here. Company insiders own 4.90% of the company’s stock.
Several large investors have recently modified their holdings of the stock. 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 worth $151,000 after buying an additional 145 shares in the last quarter. 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 worth $200,000 after buying an additional 1,677 shares in the last quarter. Fox Run Management L.L.C. acquired a new stake in shares of Prosperity Bancshares during the second quarter worth $214,000. Salzhauer Michael acquired a new stake in shares of Prosperity Bancshares during the second quarter worth $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 worth $230,000 after buying an additional 152 shares in the last quarter. 80.30% of the stock is currently owned by hedge funds and other institutional investors.
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.
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