Zacks Investment Research Upgrades Prosperity Bancshares Inc. (PB) to Hold
Prosperity Bancshares Inc. (NYSE:PB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued 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.”
PB has been the subject of several other reports. Hovde Group upgraded shares of Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $54.00 price objective for the company in a research report on Wednesday, June 29th. Deutsche Bank AG raised their price objective on shares of Prosperity Bancshares from $54.00 to $59.00 and gave the stock a “hold” rating in a research report on Tuesday. SunTrust Banks Inc. started coverage on shares of Prosperity Bancshares in a research report on Thursday, October 6th. They set a “neutral” rating for the company. Wedbush started coverage on shares of Prosperity Bancshares in a research report on Thursday, October 6th. They set a “neutral” rating and a $54.00 price objective for the company. Finally, FBR & Co upgraded shares of Prosperity Bancshares from a “market perform” rating to an “outperform” rating and raised their price objective for the stock from $55.00 to $60.00 in a research report on Tuesday. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the stock. Prosperity Bancshares presently has a consensus rating of “Hold” and a consensus target price of $52.08.
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Prosperity Bancshares (NYSE:PB) traded down 4.00% during midday trading on Thursday, hitting $53.25. 128,080 shares of the stock traded hands. The firm has a market cap of $3.70 billion, a P/E ratio of 13.41 and a beta of 1.29. Prosperity Bancshares has a 12-month low of $33.57 and a 12-month high of $57.04. The company’s 50-day moving average is $54.43 and its 200 day moving average is $51.69.
Prosperity Bancshares (NYSE:PB) last issued its earnings results 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, analysts anticipate that Prosperity Bancshares will post $3.94 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Friday, September 16th were paid a $0.30 dividend. 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 is currently 30.15%.
In other Prosperity Bancshares news, Director Perry Mueller, Jr. sold 13,536 shares of the firm’s 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 sale, the director now owns 6,723 shares of the company’s stock, valued at $363,042. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Robert H. Steelhammer sold 2,900 shares of the firm’s stock in a transaction that occurred on Monday, September 12th. The stock was sold at an average price of $54.00, for a total transaction of $156,600.00. Following the sale, the director now directly owns 160,800 shares in the company, valued at approximately $8,683,200. The disclosure for this sale can be found here. 4.90% of the stock is currently owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the company. Riverhead Capital Management LLC boosted its position in shares of Prosperity Bancshares by 40,913.9% in the second quarter. Riverhead Capital Management LLC now owns 5,000,000 shares of the company’s stock worth $5,012,000 after buying an additional 4,987,809 shares during the last quarter. Emerald Acquisition Ltd. purchased a new position in Prosperity Bancshares during the second quarter worth $22,319,000. Goldman Sachs Group Inc. raised its position in Prosperity Bancshares by 23.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,893,919 shares of the company’s stock worth $87,859,000 after buying an additional 361,881 shares during the period. Vanguard Group Inc. raised its position in Prosperity Bancshares by 4.3% in the second quarter. Vanguard Group Inc. now owns 5,293,252 shares of the company’s stock worth $269,903,000 after buying an additional 219,156 shares during the period. Finally, Prudential Financial Inc. raised its position in Prosperity Bancshares by 90.5% in the first quarter. Prudential Financial Inc. now owns 397,676 shares of the company’s stock worth $18,448,000 after buying an additional 188,890 shares during the period. 80.30% of the stock is currently owned by 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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