Zacks Investment Research upgraded shares of Prosperity Bancshares (NYSE:PB) from a hold rating to a buy rating in a research report report published on Friday morning. The firm currently has $79.00 price objective on the bank’s stock.
According to Zacks, “Shares of Prosperity Bancshares have underperformed the industry in the last twelve months. Yet, the company surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Growth in loan and deposit balances along with steady improvement in asset quality should support profitability. While, elevated operating expenses and pressure on net interest margin (despite improving rate scenario) remain major causes for concern, the company is expected to continue to enhance shareholder value through efficient capital deployment activities.”
Several other analysts have also recently issued reports on PB. Royal Bank of Canada reaffirmed a hold rating and issued a $71.00 price target on shares of Prosperity Bancshares in a report on Friday, September 8th. SunTrust Banks reaffirmed a buy rating and issued a $73.00 price target on shares of Prosperity Bancshares in a report on Monday, October 2nd. ValuEngine cut shares of Prosperity Bancshares from a buy rating to a hold rating in a report on Friday, November 10th. Finally, Keefe, Bruyette & Woods reaffirmed a hold rating and issued a $79.00 price target on shares of Prosperity Bancshares in a report on Friday, December 22nd. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the stock. Prosperity Bancshares currently has a consensus rating of Hold and an average target price of $72.68.
Prosperity Bancshares (NYSE:PB) last announced its earnings results on Wednesday, October 25th. The bank reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.02. The business had revenue of $184.96 million during the quarter, compared to the consensus estimate of $185.59 million. Prosperity Bancshares had a net margin of 34.79% and a return on equity of 7.38%. During the same period in the prior year, the firm earned $0.99 earnings per share. analysts forecast that Prosperity Bancshares will post 3.95 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, January 2nd. Shareholders of record on Friday, December 15th will be issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.06%. This is a boost from Prosperity Bancshares’s previous quarterly dividend of $0.34. The ex-dividend date is Thursday, December 14th. Prosperity Bancshares’s dividend payout ratio is 36.46%.
Several large investors have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in shares of Prosperity Bancshares by 0.7% during the second quarter. Vanguard Group Inc. now owns 6,097,861 shares of the bank’s stock worth $391,727,000 after purchasing an additional 41,682 shares during the period. FMR LLC raised its holdings in shares of Prosperity Bancshares by 14.5% during the second quarter. FMR LLC now owns 1,980,933 shares of the bank’s stock worth $127,255,000 after purchasing an additional 251,330 shares during the period. Janus Henderson Group PLC raised its holdings in shares of Prosperity Bancshares by 108.1% during the third quarter. Janus Henderson Group PLC now owns 1,957,916 shares of the bank’s stock worth $128,701,000 after purchasing an additional 1,017,115 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of Prosperity Bancshares by 1.4% during the second quarter. Dimensional Fund Advisors LP now owns 1,709,284 shares of the bank’s stock worth $109,809,000 after purchasing an additional 22,930 shares during the period. Finally, Bank of New York Mellon Corp raised its holdings in shares of Prosperity Bancshares by 1.0% during the third quarter. Bank of New York Mellon Corp now owns 817,453 shares of the bank’s stock worth $53,730,000 after purchasing an additional 8,304 shares during the period. 76.80% of the stock is currently owned by institutional investors.
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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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