Prosperity Bancshares (NYSE:PB) Cut to “Neutral” at DA Davidson

DA Davidson downgraded shares of Prosperity Bancshares (NYSE:PB) from a buy rating to a neutral rating in a research report released on Tuesday morning, Marketbeat reports. They currently have $78.00 price objective on the bank’s stock, down from their prior price objective of $80.00. DA Davidson also issued estimates for Prosperity Bancshares’ FY2025 earnings at $5.64 EPS.

A number of other analysts have also recently commented on the company. Morgan Stanley raised Prosperity Bancshares from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $75.00 to $86.00 in a research report on Monday, August 5th. Wedbush raised Prosperity Bancshares from a “neutral” rating to an “outperform” rating and boosted their price target for the stock from $75.00 to $90.00 in a research report on Tuesday, September 24th. StockNews.com lowered shares of Prosperity Bancshares from a “hold” rating to a “sell” rating in a report on Wednesday, August 28th. Stephens upgraded shares of Prosperity Bancshares from an “equal weight” rating to an “overweight” rating in a report on Wednesday, June 26th. Finally, Barclays boosted their price objective on shares of Prosperity Bancshares from $70.00 to $75.00 and gave the stock an “equal weight” rating in a report on Friday, September 27th. One analyst has rated the stock with a sell rating, four have issued a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $77.27.

Prosperity Bancshares Stock Up 0.8 %

Shares of PB opened at $74.73 on Tuesday. The business’s 50 day moving average price is $71.90 and its 200-day moving average price is $66.26. Prosperity Bancshares has a 52 week low of $49.60 and a 52 week high of $74.96. The stock has a market cap of $7.17 billion, a P/E ratio of 17.22, a P/E/G ratio of 1.49 and a beta of 0.89.

Prosperity Bancshares (NYSE:PB) last issued its quarterly earnings results on Wednesday, July 24th. The bank reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.02. Prosperity Bancshares had a return on equity of 6.32% and a net margin of 25.10%. The firm had revenue of $458.95 million for the quarter, compared to analysts’ expectations of $290.06 million. During the same period in the previous year, the firm posted $1.21 EPS. On average, equities analysts anticipate that Prosperity Bancshares will post 5.03 EPS for the current year.

Prosperity Bancshares Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 2nd. Shareholders of record on Friday, December 13th will be paid a dividend of $0.58 per share. The ex-dividend date is Friday, December 13th. This is a positive change from Prosperity Bancshares’s previous quarterly dividend of $0.56. This represents a $2.32 dividend on an annualized basis and a yield of 3.10%. Prosperity Bancshares’s payout ratio is currently 51.61%.

Institutional Investors Weigh In On Prosperity Bancshares

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in Prosperity Bancshares by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 9,693,076 shares of the bank’s stock valued at $656,512,000 after buying an additional 53,844 shares during the last quarter. Victory Capital Management Inc. raised its stake in Prosperity Bancshares by 3.0% during the 2nd quarter. Victory Capital Management Inc. now owns 6,359,165 shares of the bank’s stock valued at $388,799,000 after buying an additional 184,453 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in Prosperity Bancshares by 14.2% during the 2nd quarter. Dimensional Fund Advisors LP now owns 4,287,615 shares of the bank’s stock valued at $262,141,000 after buying an additional 532,241 shares during the last quarter. Bank of New York Mellon Corp increased its stake in shares of Prosperity Bancshares by 2.1% in the 2nd quarter. Bank of New York Mellon Corp now owns 935,420 shares of the bank’s stock worth $57,192,000 after purchasing an additional 19,224 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in shares of Prosperity Bancshares by 11.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 884,734 shares of the bank’s stock worth $59,923,000 after purchasing an additional 89,617 shares in the last quarter. 80.69% of the stock is currently owned by hedge funds and other institutional investors.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery.