Prosperity Bancshares (NYSE:PB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Shares of Prosperity Bancshares have outperformed the industry in the past six months. The company surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. The bank’s fourth-quarter 2017 results benefited from a rise in net interest income partly offset by higher expenses and fall in non-interest income. Growth in loan and deposit balances and stable expense levels along with steady improvement in asset quality will support profitability. Also, the company is expected to benefit from lower tax rates. However, pressure on revenues and net interest margin (despite improving rate scenario) remain major concerns for the company. Further, high exposure to risky real estate loans makes us apprehensive.”
A number of other analysts have also recently weighed in on PB. ValuEngine cut shares of Prosperity Bancshares from a “buy” rating to a “hold” rating in a research note on Friday, November 10th. SunTrust Banks reaffirmed a “buy” rating and set a $77.00 target price on shares of Prosperity Bancshares in a research note on Wednesday, November 29th. Keefe, Bruyette & Woods reaffirmed a “hold” rating and set a $79.00 target price on shares of Prosperity Bancshares in a research note on Friday, December 22nd. Hovde Group cut shares of Prosperity Bancshares from a “market perform” rating to an “underperform” rating and decreased their target price for the stock from $70.00 to $68.00 in a research note on Tuesday, January 2nd. Finally, Barclays boosted their target price on shares of Prosperity Bancshares from $72.00 to $79.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 2nd. Four analysts have rated the stock with a sell rating, nine have issued a hold rating and two have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus price target of $74.45.
Prosperity Bancshares (NYSE:PB) last posted its earnings results on Wednesday, January 24th. The bank reported $0.99 earnings per share for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.01). The company had revenue of $185.27 million for the quarter, compared to the consensus estimate of $185.43 million. Prosperity Bancshares had a return on equity of 7.28% and a net margin of 34.28%. During the same period in the previous year, the firm posted $0.99 EPS. research analysts forecast that Prosperity Bancshares will post 4.78 earnings per share for the current fiscal year.
Prosperity Bancshares announced that its Board of Directors has authorized a stock repurchase program on Friday, January 19th that allows the company to repurchase 3,470,000 outstanding shares. This repurchase authorization allows the bank to reacquire shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.
In related news, CFO David Hollaway sold 1,800 shares of the business’s stock in a transaction on Monday, February 5th. The shares were sold at an average price of $75.60, for a total value of $136,080.00. Following the sale, the chief financial officer now owns 168,684 shares of the company’s stock, valued at $12,752,510.40. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Michael Epps sold 4,000 shares of the business’s stock in a transaction on Thursday, February 1st. The stock was sold at an average price of $75.15, for a total transaction of $300,600.00. The disclosure for this sale can be found here. In the last three months, insiders sold 10,800 shares of company stock worth $818,280. 4.93% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently modified their holdings of PB. Canada Pension Plan Investment Board bought a new stake in Prosperity Bancshares during the third quarter valued at $105,000. Tower Research Capital LLC TRC bought a new stake in Prosperity Bancshares during the fourth quarter valued at $127,000. PNC Financial Services Group Inc. boosted its position in Prosperity Bancshares by 8.3% during the second quarter. PNC Financial Services Group Inc. now owns 2,424 shares of the bank’s stock valued at $156,000 after acquiring an additional 185 shares during the last quarter. Arvest Bank Trust Division bought a new stake in Prosperity Bancshares during the fourth quarter valued at $210,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Prosperity Bancshares by 39.4% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,469 shares of the bank’s stock valued at $243,000 after acquiring an additional 980 shares during the last quarter. 76.63% of the stock is currently owned by institutional investors and hedge funds.
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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