Prosperity Bancshares, Inc. (NYSE:PB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Shares of Prosperity Bancshares have underperformed the industry in the last six months. The company surpassed the Zacks Consensus Estimate for earnings only in two of the trailing four quarters. Margin pressure (despite improving rate scenario) owing to the company’s liability sensitive balance sheet remains a major concern. Also, the bank’s strategy to grow inorganically may lead to higher merger related charges, resulting in a rise in operating expenses. Nevertheless, growth in loan and deposit balances along with steady improvement asset quality should support profitability.”

Several other analysts also recently weighed in on the company. SunTrust Banks, Inc. restated a “buy” rating and issued a $73.00 price target on shares of Prosperity Bancshares in a research note on Monday, October 2nd. Royal Bank Of Canada restated a “hold” rating and issued a $71.00 price target on shares of Prosperity Bancshares in a research note on Friday, September 8th. Keefe, Bruyette & Woods restated a “hold” rating and issued a $73.00 price target on shares of Prosperity Bancshares in a research note on Tuesday, August 29th. Raymond James Financial, Inc. restated an “underperform” rating on shares of Prosperity Bancshares in a research note on Thursday, August 10th. Finally, UBS AG downgraded Prosperity Bancshares to an “underperform” rating in a research note on Thursday, August 10th. Four investment analysts have rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the stock. Prosperity Bancshares currently has an average rating of “Hold” and an average price target of $71.05.

Prosperity Bancshares (PB) traded down 1.31% on Tuesday, hitting $63.46. The stock had a trading volume of 312,913 shares. The company has a market cap of $4.41 billion, a P/E ratio of 16.07 and a beta of 1.36. The stock has a 50 day moving average price of $61.87 and a 200 day moving average price of $64.37. Prosperity Bancshares has a 1-year low of $52.81 and a 1-year high of $77.87.

Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings results on Wednesday, July 26th. The bank reported $0.99 earnings per share for the quarter, missing the consensus estimate of $1.00 by ($0.01). The company had revenue of $180.01 million during the quarter, compared to analysts’ expectations of $187.13 million. Prosperity Bancshares had a return on equity of 7.49% and a net margin of 35.20%. During the same quarter in the previous year, the company earned $0.98 EPS. On average, equities research analysts expect that Prosperity Bancshares will post $3.94 EPS for the current fiscal year.

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In related news, Director Robert H. Steelhammer sold 5,000 shares of the company’s stock in a transaction that occurred on Thursday, August 31st. The stock was sold at an average price of $60.00, for a total value of $300,000.00. Following the transaction, the director now directly owns 137,800 shares of the company’s stock, valued at approximately $8,268,000. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 4.93% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Huntington National Bank lifted its holdings in shares of Prosperity Bancshares by 9.2% during the 2nd quarter. Huntington National Bank now owns 1,689 shares of the bank’s stock valued at $109,000 after buying an additional 143 shares during the period. Pacad Investment Ltd. bought a new position in shares of Prosperity Bancshares during the 2nd quarter valued at $109,000. PNC Financial Services Group Inc. lifted its holdings in shares of Prosperity Bancshares by 13.7% during the 1st quarter. PNC Financial Services Group Inc. now owns 2,239 shares of the bank’s stock valued at $156,000 after buying an additional 269 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of Prosperity Bancshares by 17.4% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,489 shares of the bank’s stock valued at $160,000 after buying an additional 369 shares during the period. Finally, Riverhead Capital Management LLC lifted its holdings in shares of Prosperity Bancshares by 42.8% during the 2nd quarter. Riverhead Capital Management LLC now owns 3,428 shares of the bank’s stock valued at $220,000 after buying an additional 1,028 shares during the period. 72.88% of the stock is currently owned by hedge funds and other institutional investors.

About Prosperity Bancshares

Prosperity Bancshares, Inc is a financial holding company, which 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, through the Bank, offers a range of loan and deposit products to its customers.

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Analyst Recommendations for Prosperity Bancshares (NYSE:PB)

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